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How long to improve credit

how long to improve credit

Steps to Improve Your Overall Credit

If you have a history of poor credit or think that you might, it’s important that you find out and take the steps to improve it. It will take time, but with discipline, you may expect to see improvement in as little as six months. You see, creditors are interested in a track record. You’ll have to prove that you consistently pay your creditors on time and that you can effectively pay down your debt. Here’s the simple plan to improve your credit:

Know what’s on your credit report and resolve any discrepancies.

Even if you believe you have a good credit score, it is still wise to check with credit reporting agencies to make sure they contain a similar view of your credit history. It’s also wise to make sure there are no errors on your report, such as name misspellings or incorrect addresses.

Plan to pay your bills on time and follow through.

You can start this today, even before you take a look at your credit report. Contact your creditors to review your payment options and catch up with any late payments. Focus on ways to reduce your spending.

Stop using credit cards now.

Paying down your credit card balances will not only improve your credit rating over time, but you’ll be in a better position to negotiate a lower interest rate for your cards.

Don’t live beyond your means.

Make paying

your bills and buying only essential items your main priority. Carefully weigh the importance of all new purchases against the greater importance of reestablishing your good credit.

Getting a handle on your spending, paying bills on time, and paying down credit cards takes a long-term commitment and strong self-control. It won’t always be easy, but the effort will pay off (in dollars and cents) once you see your credit improve.

Home Loan Options

FHA loans don’t have the same income and credit requirements as conventional loans. If you’ve been told your down payment or credit is too low for a conventional mortgage, take a look at an FHA Loan. If you want to refinance, with an FHA Loan you can refinance up to 97.75% of your home value; some of that can be cash back. Even if you’re in a 30-year fixed now, you can still refinance to an FHA loan. Use that cash to pay off debt that doesn’t offer a tax incentive.* Your down payment can be as low as 3.5% of the price of the home. Even better, the entire down payment can be a gift from a relative.

For more information on FHA Loans, talk to our Home Loan Experts. They can help you see if you qualify for a home loan so you can reach your financial goals quicker. Just call (800) 654-0068 today to get the info you need.

*Consult your tax advisor.

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