It’s been a week and we are sure you’ve been waiting to get informed on how to repair your bad credit. Century 21 Northwest is here to help in all facets of home buying, so we thought we would give you some advice. If you are here to instantly improve your credit, you have come to the wrong place. Actually there really isn’t a place to go for instant results. We will talk about that and more if you just keep reading.
The Tortoise, Not the Hare
In this type of situation, we are the tortoise who takes it slow, not the hare who moves recklessly. It is always important to remember when repairing your credit that it is a slow moving process. Creditors do not look at your most recent activity, they look at your credit history. It’s kind of like your driving record. Speeding tickets, accidents, and moving infractions don’t look good to insurance companies just like missing credit payments, mortgage payments, and bills doesn’t look good to creditors. To fix that credit you will want to stay on top of your payments.
Watch Your Credit Balances
A major factor that creditors look at is your revolving credit versus how much you are using. The smaller the percentage, the better your credit rating will be. Staying close to 30 percent or lower is what we recommend. If your balances are high, pay them down and once you get them low keep them there.
Some issuers us the balance on your statement as the one reported to the bureau, so you could still have a higher utilization ratio than you think even if you pay the balance in full every month. One way to get the balances down is to see if your card issuer will accept multiple payments throughout the month.
Pay Off Small Balances
If you have several credit cards at different department stores or card issuers, you will want to make sure to pay off each of the cards that have small balances on them. Start with the cards that have high interest rates first. If you do not know what the interest rate is on your card, you can usually find it out on the company’s website or by giving them a call.
If you are able to pay these small balances then you will not polluting your credit with small balances.
Leave Good Debt There
You will want to leave your ‘good debt’ on your credit history. What we mean by this is if you have taken care of some of your debt like your home or car or even credit cards with high balances, do not try to remove it from your history. You will want to leave that kind of information on your report so creditors know you are in good standing.
Call Century 21 Northwest
So now that you have an idea of how to keep your credit in check, go check out our homes in the Greater Phoenix Area! Give us a call at 623.299.2148 or visit our Contact page.