GLEN ELLYN, Ill. - June 15, 2018 - (Newswire.com)
This comes as no surprise to Daniel Yelovich, a licensed mortgage loan officer and father of two from Glen Ellyn, Illinois. "Poor credit has been a problem in the U.S. for many years, with figures hovering between 34-38% over the past decade," Yelovich explains.
As a result, the mortgage lender has witnessed hundreds of individuals fail in their dreams of property investment because of poor credit scores during his career.
"Whether an individual is buying their first home or investing in their 10th property, if a loan is required to make the purchase any lender will look at income, down payment, and credit history," Yelovich points out.
It's with this in mind that he's keen to stress the importance of building and maintaining a good credit score. "Addressing credit concerns should be a top priority for everyone, but especially those looking to purchase a property, particularly where income or down payment may be limited," says Yelovich.
The good news, according to the industry expert, is that credit scores can often be improved in as little as a few weeks. He does, however, go on to add that, in some cases, it can take up to twelve months before scores see a noticeable improvement.
For those looking to improve their score, Yelovich recommends starting by requesting copies of credit reports.
"If there's a mistake on a report, it's imperative that you get it rectified as quickly as possible," he points out.
"You can contact your creditors directly, or send a letter of dispute to the relevant credit bureau to have inaccuracies on your report corrected," Yelovich continues. "A credit bureau has 30 days to investigate your claim and make any necessary amendments."
"From there," he adds, "you should request that an updated copy of your report be sent to you once the errors have been corrected."
Once any existing bad credit has been addressed, Yelovich is further keen to stress the importance of maintaining a good score going forward. To facilitate this, he advises sticking to the following plan:
- Pay any past-due bills and stay current with future payments.
- Pay all bills within 30 days of their due date to prevent an overdue flag on your credit report.
- Set up payment plans where necessary; consistent, on-time payments are pivotal.
- Keep credit card balances below 50% of their limit; maxed out cards will lower your credit score.
- Don't open unnecessary new credit accounts as frequent new credit inquiries negatively affect credit scores.
- Call your creditors if you're likely to have a problem paying any of your bills on time.
- Think twice about closing old accounts, even once they're paid off.
Explaining the last point, Yelovich clarifies, "In general, having credit cards and installment loans, while making timely payments, will improve your credit score. Someone with no credit cards, for example, tends to be a higher risk than someone who has managed credit cards responsibly."
He continues, "In terms of credit cards, it's far better to pay your balance down to zero, cut up the card, but keep the account open. This way, you'll maintain a higher credit score because the credit bureaus will see that you have available credit but don't necessarily need to use it."
"Finally, establish good new credit," Yelovich suggests. "The concern banks have is that they need to know how a person handles payments, often liking to see a minimum of 24 months of credit history. Any monthly bill with your name on it, as long as it is paid regularly and on time, will help to build a positive credit record."
"Do this," Yelovich adds, wrapping up, "and you'll be well on your way to a better credit score and a lifetime of future financial security."
Daniel Yelovich has been a licensed mortgage loan officer for over 20 years. He currently resides in Glen Ellyn, Illinois with his wife, Janet, and two children, Rebecca and Adam.
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Original Source: Daniel A. Yelovich Shares Tips on Repairing and Improving Credit Scores