Many people search credit score hacks for homebuyers because credit score is important. A credit score is your financial report card that shows how capable you are when it comes to buying a house. It shows how committed you are towards your goals and how you treat your money. It is the most important factor that can help you get a home loan to buy the home of your dreams. There is a big difference in having an excellent credit score and having good credit score. Same goes with ‘bad’ score of course. So, let us learn some important credit score hacks to help you buy a house faster.
If you know someone with good credit score, your sibling, parent or anyone, ask them to add you as one of the authorized users for their credit cards. When you sign the authority papers for the same, it means that their credit history reflects in your credit report. Make sure that they are paying their bills on time and keeping the debts low. As long as it happens, your credit report will get stronger. But if they miss payments, your credit score will also get affected. So, choose wisely and make sure that you are using this credit score hack with the right people.
Increase your credit limit
Do this carefully. If you are one of those who goes crazy when your pockets are full, you should avoid doing so, but if you can control your spending habits, do it. If your current credit status allows you to increase the limit of your credit account, go for it. Unless you are going into more debt, increasing credit limits can be a very smart way to make your credit score better. Ask for more credit limit and handle it responsibly. The trick here is, the numbers will get shifted and the current debt will look smaller in percentage when your credit limit will be increased. The best way to do so is increasing the limit but not using it.
If you’re still waiting to pay your credit card bill on a particular date, change the strategy. Pay the bill early through micro payments. Break your monthly bill payment habit into weekly or bi-weekly payment schedules. If you find it difficult to understand, here’s how you can do it.
For example, you have a credit limit of 50k and you have 35k of credit card debt. In this way, you are using 70 percent of your credit and if you break it, let’s say 5k in a month it will still be a problem because you are not wisely shrinking the utilization ratio. If you pay 1k five times in a month before the billing statement arrives, your score will go up. So if you are waiting for the billing cycle to get completed, don’t wait for that day. Instead, break the total amount in small parts and make payment as soon as you can without increasing any burden.