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Raising your credit score in the New Year

How to raise your credit score in the New Year 2019?

For many, a credit score may just seem like a 3-digit number, but it can affect your wallet in a big way. While an excellent credit score may propel your savings, a low score may deplete your savings.  Though many think that good credit is only important for opening a new credit card, there are many more important reasons why you should think of raising your credit score. With good credit, you have brighter chances of getting a home loan or any other kind of loan. You will also get better interest rates, saving you money in a handsome amount.  Even you can expect great signup bonuses on your credit cards.  It has been also noticed that employers conduct a credit check of the applicants during the hiring process to find out whether they have a good rating or not.

So, this year 2019, have some actionable plan to boost your credit rating. It will help you financially in various aspects, mainly if you are looking for some affordable home finance options.

Here are a few ideas to get your credit score in excellent shape in 2019.

Know your financial goals in 2019

According to experts who work in the mortgage industry, it is important to have financial goals first. This will help you to plan according. Whether you want to buy a home, car or want to make a heavy purchase, a good credit score will play a major role.

Know your position financially

A great credit score starts with managing your payments.  Find out what is your income and ensure you have the money to pay on time.  Once you have completed meeting all your expenses, find out how much is left with you. A cash surplus will assist in making a fat credit score likely.

Find out your credit card balances

It is important to find out how much debt you have on the credit card and how much is on each card relative to your credit limit.  This is called credit utilization. According to experts, individuals with the great credit score keep their utilization as low as in the range of 5 to 10%.  Check your card statement to find out what is your credit limit. Also, it may change, so you need to keep an eye on it periodically.

Things you should avoid

Be careful about agreeing to co-sign any kind of loan for anyone without knowing their financial status. It is good to help a known person, but if you co-sign, make sure the payments are being made on the requested date.

Know what is the right time to apply for new credit

It is imperative to open new credit accounts or apply for new debts carefully. This is because 10% of the debt comes from new credit. Along with that, every credit request you turn in will result in a small ring to your credit rating and too many of them can add up to one fat deduction. So, be careful when opening new credit accounts for applying for debts.

There are more tips on how you can build a great credit score in 2019. But remember, building a good score is a journey, and is not a fast process. You need to be patient and use the tips religiously for improving your credit score.

 

Jason Vondrak

Company President

Prospect Financial Group

948 Garnet Avenue

San Diego, CA 92109

NMLS: 349089 | BRE: 01837707

Jason Vondrak has been in the mortgage industry since 2004 and co-founded the mortgage brokerage Prospect Financial Group in 2006 in San Diego, California. Today he serves as President and CEO of Prospect Financial Group and the president and founder of Prospect Property Group, a real estate development company, established in 2012.

“I’ve had the privilege to serve in an industry that exists to ensure homeownership remains among the top priorities of government and citizens alike. Over the years, it has been a pleasure working alongside homeowners, real estate professionals, and business associates combining efforts and teaming up to help homeowners realize the dream of home ownership.”

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