SCHUTT LAW FIRM, P.A.
Phone: 239.540.7007
Blog
02/08/2017
A very important requirement for getting a good deal on a mortgage loan is to have a credit score. Good credit rating isn’t something you get from one day to the next, it takes years of dedicated care to cultivate a good score. There are some tips you can try to help you achieve some quick improvements in your credit score. After all, a good credit score is what might just get you your dream home.  Schutt Law, experts in title insurance in Fort Myers, FL, have some tips to help you improve your credit rating.

 Six Tips to Improve your Credit Score in Fort Myers

Check Your Credit Report

The first thing you need to do to improve your credit score is get a copy of your credit report! You can do it by visiting AnnualCreditReport.com. You’re allowed three free copies per year from the major credit reporting units. Getting your report will let you know where you stand, and you’ll be able to check it for errors. If you find any mistakes, talk to the credit bureau to fix them.

Fix Late Payments

If you find missed payments that you simply forgot to pay, you may consider closing your account hoping the debt will disappear. However, that won’t happen, you’ll only be ignoring the problem. The best thing you can do is pay those debts and set up payment due date alerts with all of your accounts. Organization is the key to never missing a payment. You can talk to your credit card issuer or lender to see if they can forgive that late payment. If you have a good track record of punctual payments, credit card companies tend to be pretty forgiving.

Get a Credit Card

Owning a credit card or two can be beneficial to your credit score. That is if you’re a responsible credit user who pays bills on time and doesn’t charge too much onto it. There are many good credit card options you can choose from. If you can’t get a traditional plastic, try getting a secured credit card. A secured credit card requires that you make a cash deposit which then becomes the credit line for your account. You are be able to deposit more to extend your credit or if you’re constant with your payments, sometimes the bank can reward you with extra credit. A secure credit card is good for people trying to build or repair their credit history.

Pay Bills on Time

One of the most important ingredients to a good credit rating is paying off bills on time. This shows you’re constant and punctual in your payments and are a trustworthy client. Your payment history makes up 35% of your FICO score. If you don’t trust yourself to remember to pay your bills, automate your payments so you don’t have to worry. Trustworthiness is what many mortgage loaners look for. A person who punctually pays off their debts and has a good credit history will get a better interest rate on their mortgage. Once you get that mortgage, you can continue with your home buying process.  When you do, don't forget to get title insurance. Call Schutt Law at (239) 540-7007 for further assistance in the title insurance process in Fort Myers, FL.

Reduce Your Debt

Even more satisfying than having a good credit score is knowing you’re living debt-free. It’s easier said than done, though. The first thing you need to do is stop using your credit cards unnecessarily. Check your bank statements to determine how much you owe and what interest rate they’re charging you. Try to create a payment plan that allows you to make bigger payments towards the highest interest cards while maintaining a minimum payment on your other accounts. Banks are generally more forgiving towards health and educational debts.

Raise Your Credit Limit

Only do this if you know you won’t be increasing your spending habits along with your new credit limit. The percentage of available credit you use on your cards, or utilization rate, has a great influence on your credit score. The lower the rate, the more it boosts your credit score. You want to try to keep it below 20 percent. So, if you have a higher credit limit but your spending remains the same, you will be reducing your utilization rate and  raising your credit score.

Get Title Insurance in Fort Myers, FL

Apart from having a good credit score, mortgage loaners often ask you to get title insurance for the property you intend to buy. Title insurance protects both parties from hidden debts and ownership claims. To get title insurance in Fort Myers, FL you need to call Schutt Law at (239) 540-7007. There’s no better agency to help you protect your property.