I’ve heard it often from potential buyers not quite ready – “I want to buy a house but I need to raise my credit score first.” If this describes you then here are 3 things you can do to improve your credit score. Keep in mind that credit scores take time to change, but if you are diligent and consistent you should see your score rising in a short time and be markedly higher in less than a year.
1. Pay your bills on time and pay at least the minimum payment. This will improve your score almost more than anything else. Pay on time every month. This just has to be a top priority.
2. Reduce any credit card balances to less than 30% of the card’s limit. Using too much of your card limit reduces your credit score.
3. Credit cards or other debt with small balances should be paid off. Having credit on too many credit cards, even if small, will reduce your credit score.
4. Get caught up with any unpaid creditors. These include taxing authorities, medical bills, etc. that appear on your credit report. Contact each and make payment arrangements. Even if the amount to be paid is small be sure to pay it on time.
5. Check your credit report for each of the major credit bureaus. If you find errors, open an investigation with the credit bureau to get the matter corrected. Debt that is not yours will bring down your credit score.