What Are Your Credit Scores?

What are your credit scores? I always tell my clients, just like you are supposed to have an annual physical, you should also check your credit at least once a year. Your credit scores follow you everywhere you go. There are even companies that pull your credit report before they hire you. If your credit isn’t good to excellent, it could prevent you from getting that job.

You have three credit scores from three different credit bureaus: Equifax, Experian, and Trans Union. The 3 reasons you need to review your credit scores are: 1) Make sure your identity has not been stolen. 2) Make sure everything is accurate on your credit report. 3) Know what your scores are so you can clean up your credit. Here are some of the ways to increase your credit scores: 1) Look for any past due balances on the credit report and bring them current 2) Pay off past dues and charge-offs within the last two years 3) Reduce all outstanding debt to as close to a zero balance as possible. If you are unable to pay all debt down, try to keep balances below 50% of available credit. For example, if your available credit is $1000, you want to keep your balance below $500, but keeping it below 30% or $300 would be even better. Also do not close existing accounts. 4) Too many inquiries for credit will negatively impact the score.

Certain low credit scores can hinder you from buying a home, but if you check your credit every year and dispute any inaccuracies on your report in a timely fashion, you can be assured of maintaining good to excellent credit scores. If you are seeking to purchase a home, your should acquire a credit report from Real Estate By EDJ. Knowing Your Credit Scores is the 1st Step toward purchasing your new home!