Veterans United Network’s Christy Lewis breaks down the best ways you can improve your credit score and get it homebuying-ready.
“Hi, I’m Christy Lewis with VA Loans Insider. So, we told you what type of credit score you need to move forward in the loan process and in most cases it’s 620. But today we’d like to share with you a few tips on how to improve your credit score.
First, make what’s wrong, right. About 1 in 4 credit reports contain serious errors – errors that can cost you. It’s not uncommon to find a foreign account on your report, especially if you have a common name. So look through your credit report line by line, digit by digit. If you’re reading your report online, you can dispute online or in writing using the FTRC’s sample dispute letter (just check out the link below this video). But, make sure to back up your claims with documentation.
Next step, make your payments on time. If you make late payments of any kind, your credit score drops. It’s one of the first things credit bureaus look at while calculating your score. Now, be careful with credit cards – this is a big one, because they play a big part in your score. So here are a few things to focus on: Try not to shuffle your debt from one card to another and try to keep your balances below 30% of your limit. How long you keep lines of credit open can affect your score, so it’s smart to keep credit cards open even if you don’t use them. And finally, don’t open a bunch of new accounts in a short amount of time to gain credit. A last-minute flurry could actually hurt your credit score.
Thanks for watching this Veterans United Video. Keep an eye on our Veterans United blogs for more helpful information.”