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The Top 10 Ways to Boost your Credit Score and Score a Mortgage

In Denver Real Estate, Mortgage Rates | on October, 03, 2012 | by | 0 Comments
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In today’s volatile economy, with banks ever tightening their requirements for consumer loans, credit score and income are the two biggest factors in determining whether you can land a mortgage for your Denver realty dream home.

10 ways to boost your credit score

  1. A Real Estate Agent Denver always advises clients to review their credit report for mistakes, and dispute them. Get your report from annualcreditreport.com, review it for errors, and work to correct them.
  2. Ask about increasing your credit limit is another piece of advice from a Denver Real Estate Agent. If you have good credit begin with, you may be able to raise your score by getting your credit card company to boost your line of credit.
  3. Don’t close accounts. Accounts with positive standing that you’ve had for years work in your favor, so don’t close them. Use them for small purchases each month, and pay off the balance when the bill comes due.
  4. Stay away from new credit before a major purchase. If you’re applying for a mortgage, this isn’t the time to buy an expensive new car, or a kitchen full of Viking appliances.
  5. Pay on time. Seems like a no-brainer, right? It may be, but here’s another secret that may boost your score. Pay your bills a minimum of a week early, perhaps even set up auto payments just for that reason.
  6. Real estate school in Denver talks about getting a good-will adjustment. If you’re late, ask your creditor for a good-will adjustment – essentially removing one or two late payments from your credit report. Some negative marks like a foreclosure won’t go away, but some credits may remove charge offs – or mark them “paid as agreed” – if you negotiate. None, however, will do anything unless asked.
  7. If you have hopes for a new mortgage after perusing Denver real estate listings, use an old credit card to increase your score. If you have a card sitting around that you haven’t used in a while, dust it off and charge something small. If you’re not using credit, nothing gets reported on your behalf. But beware: Most credit card companies automatically close an account if it hasn’t been used in a year.
  8. Mix up the kinds of credit you have. A mortgage and car loan are good, but mix up the kind of credit you have with a revolving loan or store credit card, or maybe a personal loan through a credit union.
  9. If you’re going to shop for new credit, by all means do it quickly. Every time you apply for credit and a credit report is pulled, that shows up as a (sometimes) negative entry on your credit report.
  10. Open a secured card. If you have bad credit, many companies offer a secured credit card where an applicant puts several hundred dollars into an escrow account, then uses the card and makes regular payments. The money you give is held in escrow in case you default on the card and stop making payments. As long as you’re in good standing, the credit card company will review your history and possibly convert your card to non-secured status within a year.

Nowadays, a Real Estate Agent in Denver, CO understands that nothing counts more than a high credit score and solid annual income. Many consumers find pay increases tough to come by these days, but there are common sense steps people can take to boost their credit scores – and increase their chance of getting a mortgage.

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