Improving Your Credit Ratings One Step at a Time

Consumers approaching lenders to make major purchases. However, if their credit rating is not stellar, the consumer might get denied financing. A lender can review the consumer’s current credit scores and provide sound advice about how to improve their scores.

Review Your Credit History on All Three Bureaus

Reviewing the credit history for all three bureaus allows the consumer to establish where they are financially. The histories show all debts that the consumer owes and explains the current standing for each debt. All negative listings can have a serious impact on the consumer’s ability to get a mortgage. Any listings that are older than 7 years or don’t belong to the consumer can be removed from the credit history.

The consumer can submit a dispute to each credit bureau that has inaccurate information listed on the consumer’s credit history. The credit bureaus will review the dispute, and they will remove the listing if it is outdated or doesn’t belong to the consumer. This could increase the credit score by around 21 points for the removal of any negative listing on the credit history.

Set Up Settlement Offers When Possible

Setting up a settlement offer allows the consumer to pay less for a debt that is in collections or that has been charged off by the original creditor. Settlement offers are typically around 50% less than the original debt amount, and the consumer can pay the debts off faster. When possible, the collection agencies will provide an installment plan to make it easier for the consumer to pay off the debt. For consumers who want to get a settlement offer, Dustin Dimisa can help.

Create a Plan to Pay More on Larger Debts

Once the consumer pays off smaller debts, it is time to create a plan to pay more on larger debts. Submitting a little more than the monthly payment can help the consumer reduce the debt balance and settle it faster. This strategy is helpful for consumers with existing personal loans or mortgages.

Reduce Your Spending

Reducing the consumer’s spending helps them save more and get more out of their earnings. Creating a nest egg for the future helps they generate capital for a down payment or even the closing costs for a home. Using the right type of savings or checking account helps them generate more interest and accumulate more savings in record time.

A budget can help the consumer figure out how they are using their earnings and what mistakes could damage their credit rating. A plan for saving more money makes it possible for the consumer to get ready to buy a home or use their equity for home improvements.

Consumers manage their credit scores to ensure that they are ready to buy a home. The credit scores can prevent consumers from getting a mortgage and a better interest rate. Managing their debt can make it easier to improve the credit scores and find a better mortgage when they are ready to buy. Consumers can get ready to buy a home by contacting a lender now.