Your credit rating is vital if you want to be successful as a real estate investor. At some point, this will affect you greatly since you might have to resort to taking hard money loans or might even be forced to borrow from high-interest money lenders.
Of course, you’d already know that a number of financial factors add up to create your credit report. Of which, if you pay your bills late, this is one aspect that affects your credit rating greatly.
As for improving your FICO score, it’s best to keep track of your credit score every 4-5 months. But be careful: pulling up your credit report too many times can have a negative impact on your score too.
1: Check Your Credit Score
The first thing that must be done to repair your credit involves checking your report for errors. This should checked in two ways. One, to see if there are any late payments that were listed incorrectly. Second, check for the amounts you owe for the accounts you have open. If you do find any errors, then dispute them with both the credit bureau and reporting agency.
2: Set Up Payment Reminders
It’s vital to make your credit payments on time. This will contribute greatly to your credit report even if you think otherwise.
3: Reduce debt
The best approach to paying off your debt involves putting most of your available budget towards the highest interest cards first. For the other accounts, you can just pay the minimum payment necessary for each month.