Improve Your Credit Rating to Get Good Home Equity Rates
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What can you do to try to get the best home equity rates?
Before you compare home equity rates, you need to look at your credit rating, as it could help you unlock better rates. If your credit rating is not 725 or higher, you might want to consider trying to bring it up before you begin to compare home equity rates.
Two Ways to Improve Your Credit Rating
- Look for mistakes on your credit report: If you have an account that isn't yours or other improperly reported information on your credit report, it could be dragging your score down. Get a copy of your credit report and follow the dispute procedures to remove anything that doesn't belong.
- Find small overdue balances you can clear up: Many consumers have small balances that are long overdue on old credit cards or accounts they've forgotten about. Some lenders may wipe your credit report clean of this mistake if you call them and pay the balance. Even if they don't remove it entirely, the new $0 balance could help improve your score.
Remember, ignorance is not bliss when it comes to your credit report. Try to complete each of these fixes about 60 days before you begin to compare home equity rates to help ensure that enough time has passed to correct your score.