A good Credit Score helps people save thousands of dollars in their lifetime. In addition, a person who has a good credit score has a great chance of getting loans quickly and better rates on financing.
But before we begin, let’s get to know what credit score is.
A credit score is a numerical expression based on analyzing an individual’s credit files to represent the person’s creditworthiness and ability to pay loans. The better the credit score is, the higher the chances of loan approval.
Therefore, while Buying Mobile Homes, it becomes essential to have a good credit score so that your loan gets approved.
Here we will discuss how you can repair your credit score and the benefits of having a good credit score.
How to improve your credit score
Pay bills on time
Payment history is an essential factor considered while calculating an individual’s credit score. If your payment history shows delay in the repayment of bills or amounts, you will undoubtedly have a low credit score, further making it difficult to approve your loans. Therefore, it is imperative to pay bills on time to maintain a good credit score.
To ensure that your bills are paid on time, it is wise to activate the payment alert or auto-debit feature. In addition, it would help you to repair your credit score.
Be smart with credit
It would be best to be smart with your credit and its utilization. The portion of your credit limits you would use at any time is known as your credit utilization.
It is recommended that you use less than 30% of your limit on any card. Remember, the lower the utilization is, the better. It is considered to be highly influential. Your credit utilization is the second-biggest factor in your credit score.
Doing this could instantly help you to repair your credit score.
Review your credit report with a critical eye
If you want to improve your credit, knowing what works in favor or against you helps a lot, and this is where checking the credit history comes into the picture.
You can have a copy of your credit report from three major national bureaus: Equifax, Experian, and TransUnion. And guess what?
When you have this score in your hands, you can check whether the reports are in favor of or against your credit score.
Various factors, such as on-time payment history, would help you get a better credit score. But, at the same time, some other factors might reduce the credit score, such as late or missed payments, high credit card balances, etc.
So it is crucial to review your credit report thoroughly if you’ve planned to buy mobile homes, especially on finance.
Ask for a higher credit limit
Having a higher credit limit can help you improve your credit score.
When your credit limit goes up, and your balance stays the same, it promptly lowers your overall credit utilization. In addition, it can further improve your credit score, as we know utilization has a noticeable impact on your credit score.
If you have successfully gained more years of positive credit experience or got a raise in your salary or income, you have a reasonably good chance of getting a higher limit.
For getting your limit increased, you can contact your credit card issuer. Once the higher limit is reported to credit bureaus, it will lower your overall credit utilization, helping ease financing while buying mobile homes.
Dispute credit report error
There are chances that there could be a mistake by the credit card issuer. Such mistakes in your credit reports could be a lower credit score. Disputing credit report errors can help you promptly repair your credit score.
You’re entitled to free reports from a few major credit bureaus to request and check for mistakes. Such mistakes can include payments marked late when you paid on time, someone else’s credit activity mixed with yours, etc. After identifying them, it is time to dispute those errors.
It can take quite some time. But the wait is worth it, especially if you’re trying to build your credit ahead of a milestone such as applying for a loan for buying mobile homes.
Always use a secured Credit Card
A secured credit card helps in building credit. A cash deposit backs the secure credit card, your payment is upfront, and the deposit amount is usually the same as your credit limit. Well, but you would be thinking about how to use it? This card is used just like a regular credit card, and the on-time payments help build the credit score.
The impact of a secure credit card varies. For example, it is likely to help someone new into the credit accounts or someone with a poor credit history to build it into a positive one.
It would be preferable to look for a secure credit card that can directly report the credit activity to the major credit bureaus. In this case, the goal is not to have any other credit card but to improve the credit history and bring it back to the good side.
Conclusion
So, after the discussion we had above, you now might have got all the necessary details that you need to know regarding credit score and the benefits of having a good credit score while buying mobile homes. In addition, you also got to know how to repair your credit score.
So are you now ready and excited to buy a mobile home?
Well, if you are, you can consider Mobile Homes Corpus Christi. We provide financing services for all types of credit, including bad credit and even no credit.
However, most lenders would ask for a much larger down payment and charge a higher interest rate for lower credit scores.
Our FICO Score Improvement Program is designed to assist customers in achieving the highest credit score possible, thus allowing them to attain a lower down payment and a lower interest rate.