how to fix your credit score

How to Fix Your Credit Score

If you or someone you know is concerned about their credit score, then this article will help.

I have outlined the Do’s and Don’ts for creating good credit. And following these rules will also help you fix your credit score.

If you have any questions, comments, or concerns then please contact me today at 310-218-6855 or email me at athena@athenapaquette.com.

Do Not:

• Close accounts. You will not be able to improve your credit if you close accounts with balances on them.

• Do not open new accounts within 12 months of applying for a mortgage loan.

• Do not open a new account for balance transfers.

• Do not do a balance transfer from credit card to credit card; especially within 90 days of applying for a mortgage loan.

• Do not pay off any collection accounts. Unless you have a letter of deletion, or a letter confirming that the reported date will remain in the past and not brought forward. This will gravely deduct form your points.

• Do not co-sign for anyone.

Do:

• Pay your bills in full every month, even if it’s a small amount like $20. If you do this for a year prior to applying for a mortgage, you may gain 20 points on your score per card.

• Do keep your balances under 30% of the credit limit.

• Use 1 card per month to avoid the ding for too many accounts with balances.

• Do pay on time or before the due date.

• Do use national banks and avoid department store credit.

• Only do balance transfers if necessary up to 30% of the account high credit limit.

• Remove any addresses on your credit that are not yours.

• Remove any name variations that are not yours, especially if you have a common name.

• Do contest any late payments that are more than 2 years old. Most creditors purge their records every two years and would have difficulty proving that you were late.

• Check all reported dates on late payments or collection accounts as they may reflect a more recent date than the actual event. This will hurt your credit score.

Keep these do’s and don’ts in mind to help your improve your credit score and increase your chances for a loan.

If you are planning to purchase a property within the next year, then contact me today for your free 90 minute consultation.  

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