The credit score is an important stability measure in real estate. A good credit score is one of the most significant assets I can possess. This asset has the authority to retain sound mortgage and refinancing rates. Furthermore, it also amplifies my negotiating power when seeking a loan.
While a lower score will not automatically disqualify prospect investors, this all-important number in residential redevelopment could hinder my ability to access specific loan programs. The greater my credit rating, the better I have the chances of being accepted for credit at my favorite rates. It also influences my ability to get things like credit cards, loans, mortgages, mobile contracts, and more.
If all of this sounds exciting to you, you’re probably ready to pursue a career as a real estate agent! Our team at Illinois Brokers Academy is here to help you with our real estate courses for any real estate career you want.
Looking for tips on how to improve my credit score? Try following the steps below.
10 TIPS TO RAISE MY CREDIT SCORE
- Prove where I reside
Register on the electoral roll at my existing address .I can do this even if I’m living in shared accommodation or living at home with my elders. - Build my credit history
Having minimal or nill credit history can make it hard for companies to evaluate me. Also my credit score may go lower as a result. This is a common issue for young and people who are new to the region. Luckily, there are some steps I will follow to build up my credit history - Make regular payments on time
Paying my accounts fully on time and every month is a strong way to show lenders I’ll be a reliable borrower, and capable of handling credit responsibly. Old, well-managed accounts can usually raise my credit score. - Keep my credit utilisation low
My credit utilisation is the percentage I use of my credit limit. For suppose, if I have a limit of £2,000 and I’ve used £1,000 of that, my credit utilisation is 50%. Usually, a lower percentage is a positive sign for lenders, and will raise my credit score as a result. If possible,I will try to keep my credit utilisation below 30%. - See if I could get an instant score boost
By securely connecting my current account to my Experian account, I can show how well I manage my money. I’ll look for examples of my responsible financial behaviour, such as paying my Netflix, Spotify and Council Tax on time, and paying into savings or investment accounts. I’ll share a summary of my boosted data with participating lenders when I search or apply for credit. - Check for errors and report any mistakes on my report
Even tiny mistakes, such as a mistyped address, can affect my credit score. The tiny mistakes are enough for a lender to reject my credit. It’s worth checking my credit report to make sure all the information entered is accurate and up to date.
If I spot a mistake,I have to contact the provider directly and ask them to change it. In case of any required assistance, I will file a dispute. Even for negative information that is correct but occurred during special circumstances,I can ask to add a Notice of Correction. - Monitor my credit file for fraudulent activity
If fraudsters gain access to my personal details, they could take my credit without me being informed.If I see something on my credit report that is wrong.Such as an application I don’t recognise, a specialist fraud support team will help. - Prevent moving home a lot if I can
This isn’t always possible to prevent.But it’s worth bearing in mind that lenders like to see stability in my situations.Moving home frequently may make lenders think I could be having trouble paying rent, for example. - Keep old accounts open and show a long credit history
It can be nice to show lenders that I can easily manage multiple credit accounts, especially over a bried period of time. Most credit scoring models tend to reward me for having long-standing, mature credit accounts, and for only using a small portion of my credit limit. - Consider getting a credit builder card
If I’m looking to raise my credit rating, then a credit builder card can help rebuild my credit score. They generally have low spending limits and high interest rates. When I first get a credit card, it might briefly cause my score to drop. But used well, it can enable me build my score over time.
Credit builder cards can be effective.When I use them for a tiny amount each month (on everyday essentials I’m going to buy). Then make sure I will repay the card on time and in full each month to avoid paying interest.
If you feel Illinois real estate is the industry for you, check out Illinois Brokers Academy. We offer pre-licensing and post-licensing courses, as well as state exam prep dates. Do check our updates now for more information.
WHAT ARE THE BENEFITS YOU THINK A GOOD CREDIT SCORE HAS?
Having a good credit score is necessary for real estate investors. The reason is it is often one of the basic things lenders will ask before providing a loan. While there are various financing methods available such as hard money lenders, FHA loans, subprime mortgages. A sound credit score will go a long way in landing my next deal.
Research the above financing methods as I work on raising my credit score, and I will be well on my way to building an aspiring real estate portfolio.
Looking to start your real estate school? At Illinois Brokers Academy, we all are set to equip you with all the key tips you need to get your real estate license. So get yourself enroll in our leading real estate courses right now.