How to Improve Your Credit Score

  One of the most common question we ask whenever we apply for a credit card, an auto loan, or even a home loan is "Does it really matter what my credit score is?"  According to Phillip Tyrone (author of Steps to a 720 Credit Score), "those three little numbers have a six-digit impact on your life.  Your credit score is your life... it is your key to the best house money can buy or the reason you might have suffered years of sleepless nights."

Most people turn to professional credit "fixers" to raise their credit scores.  I do not recommend this because fixing your credit or raising your credit score is something you can do yourself.  It just takes a little dedication and planning.  Take the following steps to improve your credit score:

1. Get a copy of your credit report from three different bureaus.  The most common bureaus used by lenders here in California are TransUnion, TRW and Equifax. Check the internet or contact me if you need help in obtaining a copy of your credit report.
2. Verify the accuracy of your credit lines reported by reviewing the credit limits, balances and account numbers.
3. Remove errors from your credit report. Pay attention to: collections, credit limits, incorrect social security numbers, incorrect addresses, accounts or names listed that are not yours.
4. Work to keep you credit balances under 30% of your credit limit.
5. Have at least three revolving credit lines.
6. Have at least one helpful active or paid installment loans on your credit report.
7. Make sure you have a deletion letter BEFORE you pay off a collection.
8. Create a structured plan on how you are going to improve, enhance and protect your credit. This should be part of your financial plan. 

As your real estate consultant, one of the things I will do for you is to help you clarify your financial purpose.  Then I will assist you in creating a strategy so that you can meet your financial goals.  If you are planning to purchase or sell a home a few months down the road, call me so we can discuss how buying or selling will help bring you closer to financial independence.  Or, we can figure out the steps necessary to get your there.