How to build a good credit score
How to build a good credit score | Things to know when buying a home in Las Vegas
One of the things to know when buying a home in Las Vegas is that credit score is huge when trying to find a bank or lender who is willing to give you a home loan. If your score is very low, you may find it is incredibly difficult to purchase a home. Most lenders want credit scores of over 600, though some lenders will accept lower.
Contact the Klinger Group at 702-509-1446 to get connected with a great loan agent and learn more about things to know when buying a house.
Even if you do have a 600 credit score, however, you may find that your options for interest rates are a little outrageous. If you are thinking about purchasing your home, the first thing you will want to do is find out how to build a good credit score. With a good credit score, lenders will be lining up to give you a loan at a competitive interest rate. Below are a few tips and tricks so you can know how to build a good credit score:
Raise your credit limit
Often raising your credit limit on your credit card is just a call away. The reason why you would raise your credit limit is so that you use a lower percentage of your credit allowance. Say you use 50% of your credit allowance every month, getting an increase on your credit limit will lower your percentage of use which is essential for raising your credit. Most financial gurus will tell you that you shouldn’t use over 30% of your credit limit, and only using about 10% will really help you build your credit score fast.
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Get a credit card
Don’t have a credit card? Get one. If you are still living at home, a credit card will help teach you how to make monthly payments and not spend more than you can afford. If you can’t handle a credit card, you may want to wait on making a huge purchase such as a house. Being responsible with a credit card or two will really help you increase your credit. Being responsible means paying off your credit card bill every month and paying it off on time or early.
Start early, if possible
If you are going to school and don’t have a full time job or even a steady job, consider getting a credit card with your family. Being a user on your parent’s or other family member’s credit card may help you begin to build your credit and help you qualify for your own credit card if you currently can’t get a credit card of your own. Parents, certain cards will let you add your children at a younger age, even if you don’t let your children carry their own credit card, consider having a credit card on hand for whenever your kid needs new clothes. Teaching them how to use credit young, even if you’re still paying the bill in the end, may really help them get a head start on building credit and being responsible with credit cards.
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Make a deal
If you do have debt that you were unable to pay at one point, try and make a deal with your credit card company or lender to mark the debt as paid or even erase the debt if you pay it off immediately. Be sure to get a written agreement with your lender and save the email conversation you’ve had so that you can show record of agreement to the terms you made with your credit card company or lender. Usually it will help if you have had a good history, but something happened that affected you financially, such as a loss of a job or medical illness to explain to your lender why you were unable to make payments at the time. However, be prepared to show proof of what you’re telling them.
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DO NOT MAX OUT YOUR CREDIT
Unless of course it’s Christmas time… just kidding. In all seriousness do everything you can to NOT max out your credit cards. This means being prepared for disaster, and no – a disaster is not having to buy Christmas gifts, save up for things like that separately. Many experts will tell you to have 3-6 months worth of expenses saved up for emergencies. This means if you and everyone in your household loses their job, you will be able to pay all your and those you are responsible for expenses for the next 3-6 months. This is also great for emergencies such as getting in a car accident or getting sick and needing to pay off medical bills.
Increasing your credit score may take time. The key is being patient, responsible with your bills, and building a savings account so all your hard work and time won’t go to waste if you have an emergency. Contact the Klinger Group at 702-509-1446 to get connected with a great loan agent who will be able to help you look at your credit score and determine what you personally need to work on to build your credit.
If you are ready to purchase a home in Las Vegas, give us a call at 702-50-1446!!!