Credit score is an integral part of qualifying for a home loan and typically the most critical. So, here are 10 simple ways to improve your credit over the next 6 months.
But before getting into the the 10 ways, let's look at factors that impact a credit score. According to the Experian app.:
- Payment History: 35% of your FICO score is based on payment history.
- Types of Credit Used: 10% of your FICO Score is based on the different types of credit you have.
- Pursuit of New Credit: 10% of your FICO Score is based on recent inquiries and recently opened accounts.
- Length of Credit: 15% of your FICO Score is based on how long you've had your credit.
- Outstanding Debt: 30% of your FICO Score is based on your outstanding debt.
Over the years, I've spoken with many folks who think their credit is in such dire shape that there is little hope of fixing it. Since they think there's no hope, they usually do nothing and the credit problem persists. However, it is very important to know that there is hope, credit can be fixed, and it won't take the rest of your life to do.
These recommendations are not something dreamed up, these are strategies to improve your credit score.