Credit scores have a significant impact on your mortgage options and the rate you will pay. That is why it makes sense to know how to improve your existing credit score and protect a good score.

Improving Your Credit Score

If you’ve had a major derogatory credit event, such as a bankruptcy, foreclosure, or short sale, lenders typically require a 1-7 year waiting period (depending on loan type and type of event). However, even if you are in a waiting period, it’s important to re-establish a good payment history. A car loan or secured credit card are the easiest forms of credit to obtain after a major credit event and can be a good way re-establish credit history.

The credit repair industry has some disreputable businesses; however, there are some effective companies that help you improve your credit score by disputing negative items, negotiating outstanding credit card or student loan debts, or by taking legal action against identity theft, inaccurate reporting, or harassment. Contact us and we can refer you to the right company.

Protecting Your Credit Score

One of the best ways to protect yourself from Identity theft is to use caution with your personal information. You can also use an identity protection service, which monitors your credit, helps you respond to any problems, and helps you recover if you ever do have your identity stolen. We recommend ID CyberCenter.

If you do not use an identity protection service, you can review your credit at least once per year (more if you’ve been a victim of fraud or had your identity compromised) for free.  Visit https://www.annualcreditreport.com/ for a free report from each of the 3 bureaus, available once per year, per bureau.  You will have to provide your personal info, including your social security number to obtain the report.

When you have a better credit score, it makes qualifying for a great rate on a mortgage, or other types of financing, much easier. Contact us today at (619) 692-3630 to learn more.