Nothing is more defeating than finding a home you want to buy and learning from the bank your credit score is too low. However, fear not! We’ve spoken with some of the best in the biz to give you 3 easy steps to raise your credit score FAST!
#1 Open a “Credit Building Savings Account”
Reach out to a few of the banks in your area and any teller should be able to quickly tell you if they have one of these special savings accounts. What makes them special? With only $300-500 initial deposit, these savings account report to all three credit bureaus…MONTHLY! And there lies the key to increasing your credit score FAST! You need to find things that report monthly and not quarterly or yearly. That way your credit score is adjusted on a more continuous basis.
#2 Get a CD Loan
A CD Loan (aka Certificate of Deposit) generally be easily obtained at any bank. You would put down a deposit of $500-$1,000 for a six-month term. You can’t take the money out before the term is up (without paying a penalty), but a CD Loan typically reports to the credit bureaus and on a six-month term you gain your money back at a very low interest rate and the great report is sent to the credit bureaus to up your score!
#3 Apply for “A” Credit Card Account, Use “Sparingly”, Pay off “Monthly”
We can’t just say “open a credit card account”. That’s not good enough because how and what you do with your credit card can actually lower your score instead of raise it. Start by only openings one credit card account. should only open 1 credit card account. Also you should never use more than half of your allotted credit limit. To keep yourself in check, start by just using your credit card to buy gas. At the end of the month when the bill comes due…pay it completely OFF! Start again the next month. This will report to the credit bureaus your timeliness of paying your bills, you never have high balances, and you are responsible with your credit.
Of course we always encourage our clients and customers to talk with their most trusted local lenders, but hopefully these quick tips will have you on your way to a pre-APPROVED letter within six months! Then you’ll be headed down the path of home ownership and we’ll be ready and waiting, eager to assist you!