Granite Group Realtors

Posted by Granite Group Realtors on 3/11/2018

You know that your credit score is incredibly important when you want to buy a home. There’s certain things that you could be doing in your everyday life that are hurting your credit score. Here’s what you need to avoid in order to keep your credit score up:

Don’t Allow For Too Many Credit Inquiries

When you’re at the checkout lane at the store, and the clerk informs you that you can save a lot of money if you just open this instant credit card on the spot, that can pose a problem. The issue with this is that the store will be instantly checking your credit score as well. These inquiries hang on your credit report for a certain amount of time. Certain inquiries can also make your score dip. Too many credit inquiries can make lenders suspicious of your ability to be a dependable borrower.

Unpaid Bills Can Add Up

If you forget to pay small credit card bills here and there, it could add up. Think of things like library books, medical bills, and credit card payments. That unreturned library fee that you never paid could come back to haunt you. A medical bill that was sent to collections can become a problem on your credit report. Most of the time, all you need to do is pay these fees up for your score to bounce back. 

Credit Report Errors

Your credit report could have incorrect information about your financial situation and records. Your credit score could be dragged down just because of some errors on the report. If you do find an error on your report, you’ll be able to submit a claim to rectify the error. 

Using Too Much Of Your Available Credit

Just because a credit limit is at $5,000, doesn’t mean that you need to max it out. Even if you pay your bills each month, using too much of your available credit can really harm your score. For your credit score to be calculated and to see how loan worthy you are, your total available credit and how much of that total credit is being used will be put into a formula. Beware of how much of your credit you use in order to keep that score up.

Not Touching Your Credit

You actually need to use your credit in order to build your score. You need credit history in order to have something for loan officers to work with. Accounts that become inactive over time will be closed by default and actually negatively impact your score. 

By using your credit responsibly, you’ll keep your credit score up and be in good shape to buy a house.

Posted by Granite Group Realtors on 11/3/2013

Unfortunately, many homeowners have gone through a foreclosure in recent years but that doesn't mean that future homeownership is out of the question. Hard work and discipline and these tips should have you on the road to homeownership again soon. 1. Keep a steady job Potential lenders will need to see stable employment before they’ll approve a mortgage loan after a foreclosure. 2. Build your savings Rebuild your savings account. You will want to establish a minimum of six months of living expenses in a liquid account. Mortgage companies will want to see you have a cushion to pay your bills. 3. Work on your credit score After foreclosure, your credit score probably dropped by about 150 points. Rebuilding your score will take time, hard work and perseverance. Pay all of your bills on time and make sure to keep your credit card balances below maximum levels. It is best to have the balance less than half of the available balance. If you stay disciplined and positive, the American dream—obtaining a mortgage and owning a home of your own—can, indeed, be yours again. Even after foreclosure.