Real Estate in Northeast Florida and Around the World

You see the advertisements in the newspaper, on TV and on handmade signs along the side of the road.  "Improve your credit score today!"  Credit scores are used not only by lenders for all types of credit, but by insurance companies, car rental companies and employers.  Your credit score is a direct reflection of your character and capacity to take on the responsibility of a job, vehicle or loan - at least in the eyes of those who make the decisions.

The old adage of "if it seems too good to be true, it probably is" applies in the cases of the quick-fix schemes for credit scores.  One of the first things you should do is to obtain your credit report from each of the three credit repositories:  Experian, Equifax and Transunion.  Each of the credit repositories' data will be used when applying for a loan to purchase a house, so it is important to be aware what is being reported to each repository.  If there are items on your report that do not belong to you, or have been reported in error, work with the respective repository to correct the information.

Once you have confirmed the accuracy of your reports, the next step is to work on what is there.  Ensure that all accounts are paid on time, every month.  Pay down credit cards to at least half of the total credit line, if not more.  Pay off collection and judgments.  You may have a credit score high enough to obtain a loan, but certain types of collections, liens and judgments have to be paid before a loan can be made.  Get them paid off as quickly as possible.

You can speak to a free credit counselor at HUD.gov, who will give you solid guidance about your specific situation, and how you can improve your credit score.  Know your score and be informed!