"How to Build and Maintain a Perfect Credit Score”
By Tim Tomkowiak
I hope this finds you well. As a Mortgage 1 Lender, I wanted to offer some advice on credit behavior during these challenging times. Now is not the time for any changes in credit behavior, but borrowers should be mindful of certain actions that can impact their credit scores.
Here are some recommendations to help you maintain and improve your credit:
Pay on time: It's crucial to make timely payments on all your debts. Consider setting up payment reminders and auto payments if available. Even a few days of delinquent payments can negatively affect your FICO Scores.
Reduce credit card debt: Use your credit report to create a list of all your credit cards and their interest rates. Focus on paying off the higher interest rate cards while still making the monthly minimum payments on other creditors.
Be cautious with credit cards: Avoid making new purchases on your credit cards. Additionally, refrain from closing unused credit cards as a short-term strategy to raise your credit score. Opening new credit cards without consulting a Mortgage 1 Lender first may not be beneficial to your credit for at least six months.
Pay off outstanding debt: Negotiating and setting up payment plans with collections or old unpaid debt. This will not only help your credit but help you in qualifying for a mortgage.
Continue to use credit: Many people make the mistake of not using credit regularly and responsible. You want to always have some activity on your credit. Charge something small each month like gas or a phone bill, wait until the due date and pay the full statement balance. Doing this will build your credit up and you’ll have great credit.
Be patient and persistent: Restoring your credit takes time and effort. Credit damage doesn't happen overnight, so don't expect an immediate improvement. Stay patient and persistent in your efforts to get back on track.
Remember, maintaining good credit is crucial when applying for a mortgage or other loans. I encourage you to follow these recommendations to safeguard your credit health during these uncertain times.
If you have any questions or need further guidance on credit management, please do not hesitate to reach out to me. I am here to assist you in any way I can.
We are here to help and please let me know if you have any questions!
Tim Tomkowiak
“I am a license loan officer. And I help ordinary people build equity and wealth through home ownership”
