Are you wanting to buy your new home in Nashville, but your credit score is holding back? While it may have you feeling down, the good news is there are three action steps you can start taking now to improve your credit score and help you get into the home of your dreams.
Secret #1: Pay Your Bills On Time
I know this may sound like a no brainer, but did you know that 35% of your credit score is from your payment history? So, secret number one is to pay your bills on time. That alone can help your score tremendously.
Secret #2: Keep Credit Card Balance At or Below 30%
30% of your credit score is based upon the capacity of credit. For example, if you have a credit limit of $5,000, you only want to use 30% of the capacity of that card, meaning you only want to use $1,500 of credit and keep $3,500 unused. Now, if you have one credit card with a $10,000 balance and another with a much lower balance, transfer some of the debt from one credit card to the other so that the capacity used is as close to 30% as possible.
Secret #3: Keep Credit Inquiries To A Minimum
You will want to keep credit inquiries to a minimum because 10% of your credit score is based on that and past applications, so keep that in mind that 75% of your total credit score is based upon:
- payment history
- capacity of credit used
- inquiries and past applications
So, go ahead and
- Pay your bills on time
- Be sure not to max out your credit cards
- Keep a 30% balance or lower
- Don’t get too many inquiries
Doing just those things alone will dramatically maximize your credit score. For more detailed information about how to maximize your credit so you can save money and get better interest rates when buying a home in Nashville, you can reach out to me at any time or just go ahead and click here to get a detailed 17-page report on how to boost your credit. As always, please don’t hesitate to reach out to me with any of your real estate questions or needs. I’m always here to help.