Home Improvement Finaces

How to raise your credit before you finance your next home improvement project

Home improvement projects are there to increase the value of your home. It saves you power bills, expands your home to create more space for an expanding family, incorporate some modern tech and make your home look fresh again. On the other hand, it costs money. As it is a trend, I bet you don’t have the money in the bank, enough to finance that project. After you do your budgeting, you will have to approach the creditors for a loan or a mortgage. And then they will do what they do best; look at the level of risk. The biggest considerations will be your credit score and credit inquires. You can see how to remove credit inquiries here and find more information about your credit score here.

good credit just ahead

Your credit score shows your value in repaying loans not only currently, but from your past. That should tell you one thing; you need to work on your credit score way before you think of financing your home improvement project if you want to keep away the frustrations of being turned down by creditors. Here are tips on how to do that.

 

Let the good debt stay on your report

There is some form of a hurry by some debtors to get rid of their old debt from their reports on the occasion that they complete paying the loans. They think that having it clean is the best way to earn a higher credit score. Well, that’s not true. Creditors are out there to check on your history. If you have had no issues repaying your loans, then you have nothing to worry about when the report accommodates such records. Such records show that at least you will be able to pay on time. Erasing them will mean expunging the points you very much need.

 

Pay the bills early enough

You are looking to earn points on your credit score. Delaying to pay the bills simply is disqualifying. Creditors are very wary of those who wait until the last minute to start thinking about payments. Paying early shows great effort and the will to pay back what is not yours. Remember that a home improvement project can be expensive and you don’t have the funds of your own that will be enough to have it financed with a single blow. You better act like you want the loan.

 

Keep an eye on your credit card

A credit card is simply a form of a loan and your payment as well as the spending behaviour will matter to a creditor. Do you pay your credit on a monthly basis? On top of that, how low is your revolving credit over spending habit ratio? If you exceed 30%, it might stink for a creditor.

 

Rate of borrowing

If you are used to borrowing and paying back the money, then you have a higher credit score. The fact is that creditors don’t want to risk their money on a person they are not sure of the behaviour once he is awarded the loan. Although it might not count much, it still does matter. It is viewed that people who don’t take loans fear that they might not be able to pay, and that is what might come true once they get the mortgage. No creditor will be willing to deal with such a consequence.

With these tips, you will be able to get a bigger loan that will see through your home improvement project as a success.

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