Improve Your Mobile Home Credit Score in 5 Steps
Have you recently applied for a loan and realized your credit score isn’t where it needs to be?
Whether you don’t have enough credit built, or your credit score just isn’t good, we will talk today about how to improve your credit score. If you follow these tips, you can be an ideal candidate for a loan for a mobile home! Let’s get started!
Find Out Your Credit Score
If you have a bad credit score and want to improve it to apply for a mobile home loan, first determine your score. Fortunately, you can obtain a free credit report at www.AnnualCreditReport.com. There are several credit bureaus that issue scores. You have the legal right to receive a free score from each of them once a year. Once you’ve determined your credit score, you can apply for a loan. If your credit isn’t in a good spot, you’ll need to work on improving your score.
Improve Your Mobile Home Credit Score by Working on Your Spending Habits
How much you spend versus how much you have available to spend is a major factor in your credit score. Banks want to see that you’re responsible with your available credit. Maybe you’re tempted by those expensive shoes at the mall or the latest iPhone. Banks want to see that you don’t use up all of your credit every month.
Spending only a small percentage of your monthly income demonstrates to lenders that you are not prone to impulse purchases. It also shows that you responsibly pay off your card each month. We’ll tell you a little secret: Set up a credit card for specific purchases. You could make it a rule that you only use your credit card to fill up your car with gas, and unless you drive a massive pickup truck, this will likely only use a small portion of your credit and look great to the credit bureaus. This will get you that much closer to getting a mobile home loan!
Keeping Your Card Paid Off Will Improve Your Credit Score
You may already put this into practice, but you should always pay the total amount due on your credit card each month. Credit card companies would prefer that you pay the minimum every month. Any amount above the minimum will accrue interest and be charged to you the following month. In the long run, allowing them to “hold” that amount will cost you much more than if you simply paid it off in the first place. Paying off your credit card balance in full each month will help you improve your credit score significantly!
Look into Recovering Lost Credit
Everyone has been there. We’ve faced financial emergencies that led us to dip into our credit, like needing a new engine in our car or a new HVAC. There could be times when you had no choice but to use all of your credit or more likely, miss a few credit card payments. Even a couple of missed payments can have a significant impact on your credit score. The good news is that banks make it simple for you to get this score back on track. If you can commit to making on-time, full credit card payments for as little as six months, your credit score will quickly recover.
For even faster credit building, apply for a “secured” credit card. You essentially make a deposit on the card, which they hold as collateral in case you are unable to make a payment.
Spend Money Wisely When Improving Your Mobile Home Credit Score
Some people will believe they are in the clear between being approved for the loan and paying for the home and to celebrate, they will go out and make a large purchase on credit, whether it is items for the home or large restaurant dinners. Even though they’ve already been approved, this purchase will harm their credit score and make them ineligible for the loan they just applied for.
Due to unwise spending, the debt-to-income ratio will become completely out of balance. When that ratio falls, the bank will no longer consider you a desirable borrower. As a result, you will be passed over for someone who spends much more wisely.
You’re So Close!
Chances are if you’re reading this, then that shows there is a desire in you to obtain excellent credit to purchase a mobile home. That’s a great place to start! Being aware of your credit score, keeping your card paid off, and spending your money wisely are all practices you should keep in mind on this journey to mobile home ownership. In the meantime, our team is excited to help you and other individuals find your dream home.