Are you ready to buy that Indio real estate property you’ve had your eye on, but your credit score is dismal? Have you declared bankruptcy in the past or foreclosed on a property? Did you have a bad run with credit cards when you were younger or have you missed payments many times? Even when you don’t have the best credit history, it is definitely possible to improve your credit score so that you can qualify for a new mortgage loan and start looking at Palm Springs homes for sale.
Regardless of whether you’ve got your eye on a condo in Mammoth, a beach cottage in Orange County or Palm Springs homes for sale, your credit score can make or break a deal when you’re trying to buy a property. It makes lenders aware of how you manage money and how responsible you are. It affects your purchases in other ways too—for example, a poor credit score translates to a higher interest rate on a home loan, while a good score or an improved one will help you get lower interest rates.
The good news is, you can significantly improve a poor credit score by demonstrating more responsible money management skills. Once you raise your score, you can qualify for home financing and hopefully get a good interest rate so you can buy that Indio real estate property your family is dreaming about.
There are many thing you can do to improve your score. Two of the most basic yet important are: 1) Make your payments on time every month, and 2) Make payments in full whenever possible. If you plan to buy a new home in the next year or so, you should not open any new lines of credit and be able to provide evidence of steady employment for a period of at least one to two years.
In addition, it’s best to use whatever credit cards you do have sparingly and make sure that you do not overextend your credit line. If you do by accident, make a payment immediately to get your balance back under your credit limit. Most experts recommend maintaining a balance of no more than 25 percent of your available credit on any account. The best possible scenario is to pay off all your cards and carry a zero balance.
image: aboutcreditscoreimproving.com
