DC Fawcett discusses about different types of credit scores and review on how to improve the credit score. The credit score varies from 300 to 900, depending on the credit score your loan is either approved or rejected.

When your score is between 300 and 580, it’s very rare that your loan gets approved. Even if it’s approved, you will be paying high rate of interest. If the score is between 581 and 650, there are chances of loan getting approved although rate of interest is high. 651 to 710 – the loan is approved and fair amount of interest is levied.

The scores between 711 and 750 are crucial where you find majority of investors competing and rate of interest is less. From 751 to 900, it is considered to be excellent and your loan is approved with the lowest rate of interest.

Thus investors can infer that credit plays an important role in loan approval. Credit score also decides the amount you pay as interest.  So you can either save if your score is high, but you will spend a lot if your score is low.

There are certain guidelines to be followed by every investor to improve the credit score:

• Get your credit report every year and investors will anyway get a free copy once in a year.
• Rectify the errors then and there and take quick action by informing the credit reporting agency and the creditor.
• Pay your bills on time and maintain a clean record, set reminders for your deadlines so that you don’t miss out.
• Make the balance payments and outstanding dues if any mentioned in the credit report. These will improve your credit score steadily.
• Avoid cancelling non-existing credit cards which will lower your credit score.
• It is must that you should not exceed your credit limit.
• If you have any loans that needs to get sanctioned, then do it soon before lender start his inquiries and therefore it results in lowering your credit score.
• If your credit score is good and no bad remark has been recorded so far, then it’s good to choose a secured credit card.
• Choose a different card for your monthly expenses and make those payments on time. Don’t use same credit card for making payments on real estate investments and regular expenses.

When you are applying for credit card, make sure it’s from a reliable bank, many scammers pretend themselves as bankers and cause lot of issues especially if you are a first –time card holder.

Improving credit score will take time and there is no quick way to fix a credit score. Efficient management of funds will help in building your credit score. Make a payment plan that suits your budget and it should be created in such a way that all your payments are made on time.

Investors should be aware that paying off later is not going to help and will be visible permanently in the credit report for 7 years. Neither closes your credit cards that are not in use nor opt for new credit cards thinking that you are increasing your credit limit which will lower your credit score.

Likewise don’t open new accounts in the bank if you are managing funds and having a good credit, opening new accounts often will lower your credit. To learn more about credit report, bureaus visit DC Fawcett virtual real estate investing club. 

Conclusion:

DC Fawcett, the founder of the Virtual Real Estate Investing Club, is an experienced person in the real estate field. He has been into the process of rehabbing houses, wholesales etc.