As Dallas real estate professionals, we know that a good credit score is often essential when you’re looking to buy a home, and for many other reasons. Everyone desires a good credit score, however, there are a few “sneaky” little things you may not be aware of that can actually send your score in the wrong direction. We’ve revealed some of them below!
Unpaid bills or even paying them late on a regular basis can hurt your credit score. Maybe you overlooked a medical bill and a year or two later, it’s coming back to haunt you. If it’s showing up on your credit report, the easiest way to remedy the situation is to pay the bill.
Shopping too many lenders when making a big purchase. Whether for a car, RV, boat, or other large purchase, generating a lot of inquiries can damage your credit score. Lenders inquire into your credit when giving you a quote on interest rates, so make sure you gather quotes as quickly as possible – and limit the time period to 14 days or less so the inquiries aren’t as big a blow to your credit.
Not using any credit, or using it too much. Either way, you can hurt your credit score. Many people are afraid to use credit, and when you have no credit history it can result in questions regarding whether you’re a responsible person who can make payments and manage your bills. On the other side of the spectrum, maxing out credit cards and using them daily to pay for lunch, dinner, gas, and everything you purchase can hurt you, even if you pay off the balance on time each month. Keep credit card balances low so that you don’t have a high credit utilization ratio (balance of credit limit vs. spending).
Errors on your credit report. Believe it or not, this does happen. Businesses make mistakes, and they’re run by humans. Closely examine your credit report to determine if any information is incorrect or if there may be an error, and if so, file a claim with the credit bureau issuing the report.
People are often (unpleasantly) surprised to learn their credit score isn’t as great as they thought it was – and sometimes it’s because of things they aren’t aware of, such as those mentioned above.
At Team Nelson, we strive to make the home buying process easier for everyone – and that includes getting your credit score where it should be. Looking for a beautiful home in Frisco, Highland Village, Ft. Worth or anywhere in the Dallas metro area? Our Dallas real estate agents are here to help! We’re the “your home free” experts – learn more about what that means by giving us a call today, or for more real estate tips, check out our blog!