Improve Your Credit Score with These 3 Tips

Your credit score is one of the major factors taken into consideration when buying a home. Our Lake of the Ozarks mortgage lender has over 20 years of experience in the mortgage industry. We help a wide range of home buyers complete their home purchases each and every day. While your credit score isn't the only factor that impacts your buying power, it's an important factor that you can work to improve as you prepare to buy a home near Lake Ozark, MO. 

1) Focus on Making Payments On Time

Timely payments on your bills can have a positive impact on your credit score. We understand it can be tough to keep up with payments that pile up, but it's important to adjust your budget accordingly to ensure you are able to make your payments by the due date each month. 

2) Prioritize Paying Down High Credit Balances

Credit usage is a major factor that is used to determine your credit score. It's best to keep your credit usage below 30% of your total credit limit, if possible. That means you should try to keep your credit card balances under 30% of the credit limit. Evaluate your current lines of credit and see where changes can be made to pay down higher debts to get you closer to that 30% or under range.

3) Avoid Making Changes to Credit Accounts

A new line of credit may temporarily cause your credit score to drop. Try to avoid opening a new line of credit, unless you've been advised by a professional to do so. In some cases, a new line of credit may make a difference in the long run to improve your score. Also, avoid consolidating debt or closing out old accounts that are tied to your credit. That kind of activity can temporarily lower your credit score. 

Team Lasson is here for all of your home buying needs! If you're thinking about making the leap into home ownership in the near future, consider the above tips to improve your credit score. The first step in preparing for your big purchase is to get pre-approved for a mortgage at Lake of the Ozarks. To get started, visit www.yourlakeloan.com or give us a call at (573) 746-7211!

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Michael Lasson

Senior Loan Officer

NMLS #: 493712

First State Bank Mortgage – Michael Lasson 

2751 Bagnell Dam Blvd Suite B 

Lake Ozark, MO 65049

Direct: (573) 746-7211

Cell: (573) 216-7258

e-Fax: (866) 397-0318

Email: mlasson@fsbfinancial.com

Website: www.YourLakeLoan.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

Ways to Quickly Improve Credit

Your credit score has a big impact on your ability to borrow money to purchase a home. If your credit score isn’t where you want it to be, this blog is for you! Our team of mortgage lenders in Lake Ozark, MO works with borrowers with a wide range of credit scores. We have options that may work with your unique situation but we also suggest a few techniques to raise your credit score. Check them out:

Check Credit

The first step in improving your credit is knowing what your credit score is. Once you know your score, you can start taking steps to improve it. This step also gives you the chance to see what negative remarks are on your credit history. If there is an invalid entry on your credit, you can petition to have it removed. We highly recommend researching any ding on your credit that is not valid and getting it corrected. This does not mean dispute them, but take the necessary steps to get them removed or corrected.  

Make Payments On Time

Timely payments on your bills can have a positive impact on your credit score. It can be tough to keep up with payments but it's important to budget accordingly to ensure you are able to make your payments by the due date. 

Avoid Opening New Lines of Credit

A new line of credit may temporarily ding your credit. If at all possible, avoid opening a new line of credit, unless you've been advised by a professional to do so. In some cases, a new line of credit may make a difference in the long run to improve your score. 

Pay Down High Credit Debts

Your credit usage has a big impact on your score. It's best to keep your credit usage at 30% of your total credit limit. That means you should try to keep your credit card balances under 30% of the credit limit. Evaluate your current lines of credit and see where changes can be made to pay down higher debts. 

What are you waiting for? Now is the time to put these tips into action to help improve your credit score. Whether you’re looking to buy a home at Lake of the Ozarks right away or you’re preparing for the future, Team Lasson is here to help through the entire process. Give us a call at (573) 746-7211 or visit our website at www.yourlakeloan.com to get started!

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Senior Loan Officer

NMLS #: 493712

First State Bank Mortgage – Michael Lasson 

2751 Bagnell Dam Blvd Suite B 

Lake Ozark, MO 65049

Direct: (573) 746-7211

Cell: (573) 216-7258

e-Fax: (866) 397-0318

Email: mlasson@fsbfinancial.com

Website: www.YourLakeLoan.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions. 

Tips to Improve Your Credit Score

Your credit score has a direct impact on your borrowing power. The amount you are approved to borrow and the rate at which you borrow are both impacted by your credit score. If you're planning to buy a home near Lake of the Ozarks in the near future, it's time to focus on improving your credit score to get the best chance at mortgage pre-approval near Osage Beach, MO. Check out a few tips you can put into practice to try to raise your score!

Make Payments On Time

On-time payments are a great way to show that you're responsible with your money management. Being able to pay your bills and loans on time can help raise your credit score and make you a more attractive borrower for a home loan. 

Avoid New Lines of Credit

A new line of credit can put a temporary ding on your credit score. If you're applying for a mortgage pre-approval, it's imperative that you avoid opening any other line of credit while you're in the purchasing process. This could void your pre-approval or cause delays at closing if your offer is accepted. 

Pay Down Credit Cards

Revolving credit, like a credit card, is beneficial to have for your overall credit score. It adds to your credit diversity and shows you can handle different types of credit. It's even better if you can keep your credit utilization under 30%. Avoid maxing out credit cards and if you are above 30% of your total credit limit, make an effort to pay that debt down. 

Transfer High Interest Debts

High interest debts can eat up the payments you're making quickly. The interest that's being charged each month can be hard to get ahead of. There are ways to consolidate high interest debts into a low interest loan, which can be beneficial for paying those debts down. You can also transfer debts to a lower interest loan in order to save on those high interest rates, putting more of your payment toward the principal. 

Correct Any Errors

If there are errors on your credit report, it's important to address those with the reporting agencies to get those negative errors off your credit history. It can take some time for these corrections to go through, it's best to get on any inconsistencies in a timely manner to help improve your credit score. 

Now that you know a few ways you can improve your credit score, you're ready to prepare for your big purchase. If you're curious what your current rate would be to buy a home at Lake of the Ozarks, give us a call at (573) 746-7211 or visit our website at www.yourlakeloan.com! We look forward to helping you with your home buying needs!

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Senior Loan Officer

NMLS #: 493712

4655 B Osage Beach Parkway

Osage Beach, MO 65065

Direct: (573) 746-7211

Cell: (573) 216-7258

e-Fax: (866) 397-0318

Email: mlasson@fsbfinancial.com

Website: www.YourLakeLoan.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

How to Improve Your Credit Score when Preparing to Buy

Our mortgage lender in Osage Beach, MO knows how impactful your credit score can be when purchasing a home at Lake of the Ozarks. Last week we talked about how your credit score can impact your mortgage interest rate and this week we're diving into ways you can improve your credit score. A better credit score receives a better interest rate on a home loan. A few percentage points better can make a big impact over 30 years! Learn what steps you can start taking now to improve your credit score to prepare to buy a home at Lake of the Ozarks. 

Pay Bills in a Timely Manner

Making your payments on time is an important factor that goes into determining your credit score. Stay current on any bills you owe and make sure your payments are received before or on the due date to avoid a potential penalty. 

Check Your Credit

Your credit score fluctuates as changes are made to your financial situation over time. It's important to keep an eye on your score. If there is a big change, it's worth investigating what caused that change. If there is an item that is bringing your credit score down, there are options for counteracting those dings to your credit. 

Make an Effort to Pay Down Credit Cards

The amount you owe on revolving credit is a big consideration for your overall score, as well. If you owe a large amount on a credit card, take those extra steps to get it paid down, if at all possible. You'll be surprised at how much in interest you save when you start paying that total down!

Improve Credit Utilization Rating

A big portion of your score is based on your credit utilization rating. This is the ratio between what you owe on credit and your credit limits. It's ideal to keep a balance of about 30% (or less) of your total credit limit on a card. If paying your balance down quickly isn't a realistic option, it can be helpful to raise your credit limit to increase that credit utilization score. Consult the advice of a professional before making changes to your credit limit as it can have detrimental impacts, as well. 

Be Strategic About Applying for New Credit

New credit on your credit history can temporarily lower your credit score until the activity on the new credit can be analyzed. If you're planning to make a big purchase, like applying for a home loan, it's advised to avoid applying for new credit cards or loans. This kind of activity can stall the home loan application process if you have already been pre-approved or are in negotiations for buying a new home.

Your credit score has a big impact on the interest rate you pay when applying for a home loan at Lake of the Ozarks. If you're curious as to how much of a home you can get approved for, give us a call at (573) 746-7211 or visit our website at www.yourlakeloan.com. We look forward to speaking with you about your home loan needs!

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Senior Loan Officer

NMLS #: 493712

4655 B Osage Beach Parkway

Osage Beach, MO 65065

Direct: (573) 746-7211

Cell: (573) 216-7258

e-Fax: (866) 397-0318

Email: mlasson@fsbfinancial.com

Website: www.YourLakeLoan.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

 

Credit Score Information & Strategies

Credit will play a vital role in your ability to finance items such as homes, vehicles, qualifying for apartments, and much more. Therefore, it is important to keep a close eye on your credit habits to ensure that your score is high enough to get financing when needed. If you’re looking to secure a mortgage at Lake of the Ozarks, Team Lasson is ready to help, from the qualifying process to the final closing transaction. I’m here today to give you some information on your credit score and how to effectively manage it to ensure you can qualify to buy a home at Lake of the Ozarks. Read on to learn more!

How are Credit Scores Calculated

Your credit score is calculated by a mathematical algorithm that is linked to one of your three credit reports. Your FICO Score is a commonly used credit model used by mortgage companies, which typically range from 300 – 850. Many of the scoring models used consider your payment history on lines of credit, the length of the existing credit lines, the types of credit lines you have, and how often you apply for new credit.

How to Improve Your Credit Score

If your scores aren’t quite where you want them, there are a multitude of ways that you can improve them, such as:

Paying Bills On Time

Paying your bills on time is always a best practice for keeping your credit score on the rise. If you have to pick and choose a bill to pay, a good rule of thumb is to prioritize mortgages/rent, auto loans, student loans, phone bills, and utilities.

Paying Off Debt & Keeping a Low Balance

This item involves the credit utilization ratio – taking the amount of credit you’ve used at any given time and dividing it by your total credit limit. Keeping your utilization low tells lenders that you know how to effectively manage your credit lines and aren’t maxing them out.

Not Closing Unused Credit Cards

If they’re not costing you money, keeping unused credit lines open can benefit your credit utilization ratio. If you close unused accounts, it will impact this ratio by increasing your outstanding utilization.

Correcting Inaccuracies

When reviewing your credit reports from the three bureaus (TransUnion, Equifax, and Experian) always make note of any discrepancies that appear inaccurate. Incorrect information on these reports could be dragging your score down. Be sure to call the bureau and report any inaccuracies that you see on your reports. You may also have to contact the creditor directly to get them resolved.  DO NOT dispute the findings with the credit bureaus as this could be detrimental to obtaining a mortgage loan.

How to Establish A Credit Score

If you’re just starting out, it’s likely you may not have a credit score. This means that you have few (if any) credit accounts listed on your reports. People with fewer than 3 credit lines may have difficulties obtaining a score due to a lack of credit history/information. You can begin to establish a credit portfolio by; applying for a secured credit card, become an authorized user on someone else’s credit card, or taking a “credit builder loan.”

Rebuilding Your Credit Score

Time is your biggest ally when it comes to fixing bad credit. The length of time that it will take for your score to rebuild can vary depending on the type of negative change. Delinquencies, for example, remain on your credit report for 7 years. Items of public record stay on the reports for 7 years, although certain bankruptcies can remain for up to 10. Credit inquires will show on your report for two years. 

As always, your mortgage experts at Lake of the Ozarks, Team Lasson is always here to assist with your home financing needs. I will pull your credit during the loan qualification process and can give you accurate information about your scores, credit lines, issues, as well as advice on how to proceed. Your credit is going to play a large role in your ability to secure a mortgage at Lake of the Ozarks, and I’m here to provide you with exceptional loan services and techniques to ensure you can get your dream home. 

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Senior Loan Officer

NMLS #: 493712

4655 B Osage Beach Parkway

Osage Beach, MO 65065

Direct: (573) 746-7211

Cell: (573) 216-7258

e-Fax: (866) 397-0318

Email: mlasson@fsbfinancial.com

Website: www.YourLakeLoan.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.