How to Improve Your Credit
If you are thinking about purchasing a home but are worried your credit is not good enough, there are ways you can improve your credit score quickly. Don't rush into purchasing a home with bad credit- you will end up paying a lot more money for the loan. Some people get a mortgage loan and finance their old debts into the loan in order to improve their credit over time, but they are paying a lot of money to do this. There is a better way.
If you are patient and wait a little bit you can take some steps to improve your credit score before you get a loan.
Important Steps to Improve Your Credit
- Get a complete copy of your credit history from all three major credit reporting agencies. Once you know what negative reports are in your credit history, you can begin fixing them.
- Contact your creditors and make payment arrangements. If you still owe any money you can come to an arrangement to settle with your creditors and make payments. Most creditors will settle for a portion of what you owe, so you may only end up paying half of your debt.
- Once you pay your creditors, get a letter stating that the debt is settled. Ask your creditors to report that the debt is paid to the credit agencies right away. You can also fax or send a copy of the debt settlement letters to the credit agencies yourself so that they update your credit history faster.
- If you still have current credit cards, try to pay down the balances to under half of their credit limit.
- If you have a lot of credit cards, especially retail cards, call and close some of the accounts. Your credit score increases when you don't have so many open revolving accounts.
- Get a secured credit card. With a secured credit card, you pay the credit company in advance for use of the card. This can help you build credit, and you will have a card when you need one without having to worry about paying it off later.
Get Started With Your VA Loan Request
Improving your credit rating is the first step to a healthier financial life, and it will get you on the road to homeownership. Once you take all of these steps, your credit rating will steadily increase to the point where you can get a more favorable loan at a reasonable interest rate.
See a related article: Manufactured Homes and the VA Home Loan Program
VA LOAN SPECIALISTS
We are the online VA Loan Specialists. It is our goal to ensure that your VA home loan process goes as smoothly as possible. Let us help you get the process started online today, or call us at 800-405-6682.
HAVE A QUESTION?
If you need advice concerning Veteran Home Loans, feel free to contact a VA Mortgage Specialist online or call 800-405-6682. Specialists can help determine whether a Veteran Home Loan is the best financial decision for you.
