How does my credit report work? That is a question we get quite often in real estate. Many clients don’t understand the “little things” that can make a big difference in their credit score. Evangeline Scott of Summit Funding group explains some simple tips to help you raise your credit score and get you into your home.
- Have at least four major trade lines.
- Have at least two years of credit history on those trade lines.
- Don’t close out your credit cards if you are in the process of purchasing a home.
- If you use your credit cards, use them all equally.
- Keep your balance below 50% of the credit limit.
- Your debt to lending limit should never be more than 30-50%
- Even if you pay your credit card off at the end of the month, still do not charge over 50% of the credit limit.