Buying real estate is one of the most lucrative businesses you can do in the United States. It can help you build wealth within a short while. But you need a good credit record to be successful.
Your most valuable resource as a real estate investor is a good credit score. It doesn’t only retain mouthwatering and attractive rates, but also gives you an advantage when seeking a loan.
In my opinion, every real estate investor with a good credit score is a superstar when negotiating a loan. After all, mortgage lenders will be happy to lend you money if there is little or no risk of default.
In the words of Ken Chaplin, the senior Vice President of TransUnion, “Credit record is an essential aspect of the real estate buying process. It impacts the price of mortgage payment and interest rates on loans, etc.
However, if you have subprime credit, you may face a severe financial barrier to buy real estate or own your dream home. But all hope isn’t lost; you can still improve your credit score and become loan worthy again.
How to Improve Your Credit Score
· Always pay your bills on time.
· If possible, get a loan to fast track the payment of utility and phone bills.
· Only open a new credit account when it becomes absolutely necessary.
· Never close unused credit cards; otherwise, it may increase your credit utilization ration. Once your credit utilization ratio increases, it will lower your credit score.
· Don’t leave any inaccuracy on your credit reports undisputed
How long does it take to rebuild a Credit?
There are no shortcuts in rebuilding your score. It takes time and patience. The first thing you should do is check Experian data from the FICO score. From the data, you can identify the individual factors affecting your credit scores and work on them.