When you intend to purchase a property, you will most likely need to take out a loan because it is quite a significant purchase. However, this entails the need for you to ensure that you have a good credit score because this is one of the metrics that lenders look into for your loan to be approved. This article lists down some ways on how you will be able to improve your credit score fast to buy a house.
Improve Your Payment History
One of the primary things that you can do to improve your credit score fast to buy a house is to improve your payment history. After all, your payment history tends to take up around 35% of your credit score. In this case, make sure that you can pay your bills on time because late payments can lead to various issues that can hurt your credit score. Some of these include collection accounts, repossession, foreclosure, and even bankruptcy.
While it is true that you can no longer erase the late payments that have already been recorded in your credit report, you can begin making timely payments. Moving forward, you will no longer have late payments recorded in your report. Rest assured that the late payments that have been recorded in the distant past will already have less impact on your credit score, such that after seven years, these will automatically fall off your credit report.
Dispute Credit Report Errors
Another thing that you can do to improve your credit score fast to buy a house is to dispute any credit report errors. In this case, you can consider credit restoration services to significantly improve your credit score. What they will tend to do is to address negative items on your credit report by disputing inaccurate or expired information. They will ensure that any supporting documentation to prove that an error was made will be attached to the dispute letter to ensure a fast turnaround time. Also, when you enlist the services of a credit report company, you will have instant access to the investigation, as well as a copy of your credit report once the changes have been made.
Some of the errors in your credit report that you can consider filing a dispute for include incorrect or duplicate accounts, as well as fraudulent accounts that stem from identity theft. Name misspellings and incorrect payment statuses, as well as information or accounts from an ex-spouse, are also some of the items that you can dispute. Even outdated information and incorrect date of first delinquency on a collection account should be taken off your credit report. In this case, you have to make sure that you periodically check your credit report for you to be able to file the proper dispute promptly.
Pay Down Your Balances
There is also the option for you to quickly improve your credit score by lowering down your utilization or paying down your debts. After all, credit utilization makes up 30% of your overall credit score, thereby, to protect your credit score, your utilization should be below 30% of your available credit. To foster this, avoid taking on further debt, particularly if you are already preparing to buy a new home.
Request Rapid Rescoring
Finally, you can also request rapid rescoring to quickly improve your credit score. In this case, accurate information is reported to various credit agencies to replace the inaccurate information on your credit report in five business days instead of a month. However, only the errors in your credit report can be fixed, which means that the legitimate late payments you made will not be removed. Nevertheless, with rapid rescoring, there is a chance for you to raise your credit score by a hundred points or even more, depending on the severity of the error that you found.
When it comes to improving your credit score fast to buy a house, the first thing that you can do is to improve your payment history. From there, check your credit report to dispute any errors that you may find. You should also exert the effort to pay down your balances or request a rapid rescoring. All these are geared towards ensuring that your credit score will significantly improve in time for you to buy the property that you are dreaming of.