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How To Raise Your Credit Score

Learn more about 0% down payment loans available for properties in the Denver metro area. Get a free report on first time home buyers programs by calling (303) 222-0027 or e-mailing contact@firsttimehomebuyersdenverco.com.

To qualify for most of the first time home loans that are offered in Denver, you’ll need a minimum FICO credit score of 580. And if your credit score is already pretty good, it still might be worth trying to raise it. The higher your credit score, the more likely you are to get better loan terms (such as lower interest rates and/or lower closing costs).

Below are ways to improve your credit score, so that you can become a first time home buyer sooner rather than later.

Check Your Credit Report Regularly
You can request a free copy of your credit report and check it for any errors. You might have other people’s credit mistakes on your report, particularly if you have a common last name, such as Smith or Johnson. You might have incorrect late payments. All of these dings, even if they’re errors, can drag down your score. Checking your own credit score regularly, as long as you order the credit report directly from one of the bureaus (Experian, Transunion, Equifax) won’t adversely affect your score.

Clean Up Any Errors On Your Report By Disputing Them With The Credit Bureaus
If you do find incorrect information on your credit report, dispute it with the credit bureaus. You can file disputes online with all three credit bureaus: Experian, Transunion, and Equifax. In the online report, you’ll need to identify the items you’re disputing, give the facts, state why you’re disputing the information, and request that the errors be corrected or deleted.

Pay Your Bills On Time
The best thing you can do to ensure a good credit score, throughout your lifetime, is to pay your bills on time. All of your bills, all of the time.

Get Current With Your Bills
If you’ve missed a payment, get current and stay current. This includes credit cards, student loans, car payments, rent, utilities, and more.

Watch Your Credit Card Balances
The lower your credit card balances, the better. You don’t want to have 4-5 credit cards, all maxed out.

Pay Off Credit Cards
Pay off any credit cards that you can. One by one, pay off the cards with the lowest balances and/or the highest interest rates. After you’ve paid off a card, though, don’t close the account. Leaving it open, with a zero balance will look good on your credit report.

Don’t Apply For Or Open Any New Accounts
Don’t open any new credit accounts – no more credit cards, student loans, car loans, revolving debt, or any other type of account. Don’t even apply for them! You don’t want a bunch of credit inquiries showing up on your credit report, because they can lower your score.

Even if you have a great credit score now, it’s important to maintain it throughout the home buying and loan approval process, all the way to your closing. Don’t get late with any bills. Don’t open or close any new accounts. Don’t make any large purchases or cash withdrawals on your credit cards.

Be careful about how you manage your credit and your money, and you’ll have a better chance of successfully buying your first home!

For more information on how to raise your credit score, or to start looking for your first home, please call (303) 222-0027, or e-mail contact@firsttimehomebuyersdenverco.com.

Please make note: We’ll be happy to discuss your credit score and how to raise it during a free consultation. Don’t let credit score issues keep you away from your dream home!  And remember, when you hire us, you won’t have to pay our commission because the seller takes that responsibility.