Get ready for the best rates …

Posted at July 2, 2021 Posted In Uncategorized

You know that achieving a high credit score does wonders for your financing options and pricing. It may seem basic, but …

It’s really important!

Take a moment to apply these practical tips and get yourself ready for the best rates next time you borrow!

And if you happen to have children that are considering buying their first home soon, pass along these tips and let’s help them get in position now for optimal borrowing power when the time is right.

  • Keep old accounts open to show longer credit history … Do NOT cancel credit cards! Credit card companies may send you letters stating they’re closing accounts because of non-use. Prevent this by using each card every once in a while.
  • If you can’t pay your credit card balances off each month, spread out your usage across multiple cards rather than maintaining a higher balance on just one card.
  • Ask to increase your credit limits! By having a higher available balance, automatically your utilization ratio goes down, improving your score. Note: An inquiry to request new or more credit, will temporarily cost you some credit score points. So if you’re currently looking for financing, wait until after you close escrow before applying this tip.
  • Most Important! Pay everything on time, every time. And, monitor and dispute any inaccurate reporting to the credit bureaus regarding your trustworthy use of credit.
  • If applicable, consider a refinance to pay off your HELOC … A Home Equity Line of Credit shows up like a revolving credit card, so if you’re using a big portion of the available line of credit that’s hurting your credit score. There are other reasons to consider more permanent financing too … like locking in super low interest rates!
  • Have your lender only pull your credit report when you’re serious about getting new financing. These “hard inquiries” will cost you some credit score points in the short term so make ‘em count.

When we pull your credit report to research financing options, we can simulate the effects of various actions …

And for some changes, we’ll request that your credit score is updated almost immediately rather than waiting 30 days for the creditor to report the new information.

If you want to explore financing strategies without hitting your credit report, simply start by scheduling a Personal Strategy Session.

During this initial planning session we’ll discuss your big picture goals and strategic planning … We don’t take a loan application or pull credit.

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