Happy New Year! Are you in the market for a new home this 2021? Getting your finances in order is a great way to start the year and your house hunting. Click To Tweet Here are a number of tips to help you get a jump start on improving your credit score this year.
The first is for you to get a hand on your credit report from one of the major agencies. As per the Fair Credit Reporting Act you are allowed to have a free copy of your credit report once a year. So, if you haven’t done so yet, now is the best time to get your copy, the Federal Trade Commission recommends the website AnnualCreditReport.com for you to order your credit report.
Once you get a hold of a copy of your credit report, go through it line by line and review it thoroughly. Every current and outstanding account in the report should be familiar to you. Any balance you still owe should be in order and properly reflected in the report. In the event that you find any discrepancies, like a debt that you have already paid in full but is still reflected as debt or anything that shouldn’t be in your credit report, flag those and immediately report to the concern agency so that they could assist you with the issue if necessary.
Finally, if you still have outstanding debts, prioritize those for you to be able to pay off efficiently. It is very important that you pay off at least the mandatory minimums for you to avoid being sent to a collection agency. From there, prioritize paying the debts with the highest interest rates first, getting those paid off faster means you’re spending less on interest payments over time, you can then use the extra cash to pay off your your other debts.
These are just a few things that can act on now to start improving your credit score. When you’re up and ready for a new home, contact me and I’ll be happy to discuss with you mortgage offer that best suit your needs, budget and credit.