Are you about to apply for a VA home loan? Let’s go through the tips on how to work on credit scores.
The VA home loan credit score 550 in Houston, TX is the most seamless way to land financing for a veteran or active-duty military service member. Qualified applicants can make the best out of loan benefits and flexible requirements. However, not every buyer prepares for a credit score. Here are a few tips you should remember!
Get the Credit Report
People barely think of their credit status before applying for a mortgage. On the contrary, the credit status should be the first thing that they should worry about. It is advisable to check at least one time per year in order to see where you are.
Usually, you get a free credit report from the major credit bureaus, namely, TransUnion, Equifax, and Experian. The credit reports show the accounts so that you can figure out your condition. However, you will not get to see the FICO score here. For checking the score, you have to pay a small fee of around $20. Lenders pull your credit scores from three credit agencies. Then they take the average score as your final score. You can expect a few differences because the three bureaus follow different methods.
Keep the Credit Balances to the Minimum
Make sure the credit card balance remains low, and this does not exceed 30% of the card’s limit. It is super important to make sure the total spending does not go over 30% of the limit.
Let’s say, you cannot spend more than $3000 on a credit limit of $10,000. Make sure the card balances never pull your credit scores down. Buyers, who do not have a credit card, must get to boost their score. Of course, you should use it carefully.
Eliminate all the Debts You Have
The way to the VA home loan credit score 550 in Houston, TX does not look scary. But complications may arise! If you fail to wipe out debt, you can face almost no hassles on the way. With a low credit card balance and lump sum payments, you can get low-interest rates. Make sure, your actions aim at increasing your credit score and not decreasing it. Clearing due bills is the smartest way to go.
In the end, the most important thing is to start your work on improving credit scores. Keep a track of progress, shop around for VA loans.