Are you looking to improve your credit score before you buy my home in Houston, Texas? Then you’re in the right place because credit scores are right up our alley. We Buy Fast Houston Houses will today be telling you how to improve that score.
In truth, there’s really no shortage of creative financing options to anyone looking to invest in my home in Houston, Texas. And we can all agree that the most popular financing option for potential investors looking to invest is the use of hard money lending, also referred to some circles as private lending.
Before any lender agrees to lend you money, they often look at a number of things. Examples of such things include your financial history, the level of experience, and obviously, the credit score. They know looking into some of these things will enable them figure out whether or not you’re a right fit for a certain loan.
Why’s the credit score so important?
In most cases, the hard tri-merge pull’s used to check a borrower’s credit score in Houston, Texas. This is how they get to know your ability to pay back the loan. Your past financial history will have to come to play because it indicates how financially responsible you have been to that point.
The minimum credit score requirement will depend on your exit strategy. And if at all you’ve forgotten is, we feel obligated to remind you that it’s how you plan to pay back the loan, after selling a property and earning your Return On Investment.
The credit score won’t be a huge determinant factor for an individual who’s fixing and flipping. But if the plan is to refinance using a traditional lender, then it’s certainly going to be a significant factor.
How to increase a credit score in Houston, Texas
- Dispute any errors: we do have organizations that can help you correct incorrect information on your report. Reach out to them and explain the facts around the error. You might think you have a good score only to be disappointed at the very last minute.
- Pay bills on time: It’s known that 35% of anybody’s credit score will be determined by their payment history. A late payment will have a negative impact of your record. Even if you’re just a day late.
- Under-use the card: the amounts owed will also contribute a lot to your rating. The less you use the more the score. In fact, there are studies out there that indicate if you have a 10% utilization ratio raising the score won’t be a problem.
- Check your credit score: sound obvious? Well, that’s because it actually is. And you’ll be shocked to learn that there are people out there who don’t even know what their credit scores are. While checking your score, make sure the amounts owed are correct and no late payment has been listed incorrectly.
Overall, knowing where you stand with your score is really important. And if you need help figuring that out, We Buy Fast Houston Houses can help you.