5 Proven Ways to Boost Your Credit Score

There's no dispute; when you're looking for a new home, your credit score matters. 

Your credit score holds so much weight because it shows how well you make payments correctly and on time. The lower the score, the more you appear to be a risk. 

Now, bringing up your credit score may be easier said than done, so we at Savant Realty Group researched tips that anyone can use to increase their score to the recommended 640 and above.  

Become An Authorized User

Becoming an authorized user on a friend or family member's credit card allows you to benefit from their positive credit history.

Find a person with a strong payment history and seasoned credit history, as those two factors make up 50% of how your credit is determined. 

Understand that the primary cardholder is taking on the brunt of the liability of having an authorized user. They alone are responsible for all the payments, and they may have to pay a fee for you to be an authorized user. 

The both of you risk having the other mishandle the account and bring down both scores (source). 

When asking someone to be their authorized user, it's best to address the cons and develop a plan that you both will both follow to avoid them. 

Sticking to a plan will make this route successful. 

Lower Your Utilization

All because you have a limit doesn't mean you have to hit it!

By maxing out your card, you risk your credit score dropping and your minimum payments increasing (source). And if you do it constantly, you present yourself as a high-risk borrower.

You want to get your utilization under 30% and aim to keep it under 10%.

If you find yourself constantly hitting your credit limit, but you can always pay it back by the due date, you may want to ask for a credit increase to reduce your utilization. 

Make Payments On Time 

If you're looking for a way to increase your credit and maintain it, then this is the tip for you. 

Make your payments correctly and on time.

Payment History is the most significant component when determining your credit score, a whopping 35% alone. 

You can take the first step by simply making your minimum payments on time. 

You can take the next step by creating a budget that will bring your debt down and your credit score up and get you on track to hit other financial goals. 

Visit A Credit Repair Specialist

If you qualify, a credit repair specialist can help you improve your score quickly for a fee. 

They're best for individuals who need to improve their scores quickly. 

The specialists can show you precisely what is bringing down your score and dispute it on your behalf. The importance of them is that they will make these disputes correctly. 

The only con is that based on the quality and reputation of these specialists, the fees may be on the higher end. 

Keep Up With Your Score

Some people have lower credit scores simply because they're not aware of what impacts them. 

That can easily change when you regularly track your score, and you can get a credit tracking app like Credit Karma (which is free) to alert you when things change. 

Apps that break down what impacts your credit score will help you make informed decisions in the future. 

Conclusion

Your credit should be over 640 for a smooth real estate journey. 

If you want to improve your score quickly, you should reach out to a credit repair specialist or ask your family/friends if you can be an authorized user on their account. 

To improve and maintain good credit, you want to get in the habit of keeping your utilization under 30% (10% is best!) and using credit tracking apps to stay aware of your score. 

But above all, make payments correctly and on time.

If you need advice, resources, or want to make sure that you're on track to reach your real estate goals, schedule a time to speak with our team. 

We'd love to hear from you!