From time to time, our real estate team invites an industry expert to join us at our Friday morning team meetings and speak on a subject they’re passionate about. In two weeks, we will hear from Janna Fox, CEO of ReScore. Unlike other credit counseling companies here in Kansas City, ReScore doesn’t charge a monthly fee and goes directly to the collection companies that require validation as well as sending letters to bureaus to speed up the process. ReScore offers personal coaching on how you can improve your credit through education, how to build credit, and navigate through the credit process to help you take back control of your credit.
I asked Janna to give us a few tips on how our friends and clients can improve their credit scores.
5 QUICK CREDIT SCORE TIPS:
- Have 4 open and active trade lines example, 2 credit cards (major credit cards are better for your credit score than department store cards), and 2 installment loans (an installment loan is a home, auto, or personal loan). Keep credit card balances at 30% or below the limit. To get a good pop in score 30 to 60 days before you apply for a loan, pay your oldest credit card balance down to 3 to 5% of the limit. This is the sweet spot for credit card balances and gives you the most points possible) Credit cards are an excellent way to manipulate your credit score in a positive direction.
- If you have any medical collections on your credit report, pay them. Medical collections are the ONLY type of collection that is removed from your credit report once it is paid.
- Monitor your credit every month. With identity theft on the rise, it’s more important than ever to watch over your credit. For less than $1 a day, you can save yourself thousands of dollars and the anguish of ID theft by catching it quickly.
- Don’t get your credit pulled more than 10 times in a 12-month period; if and when you do, that is when it starts negatively affecting your credit score.
- Paying everything on time will ensure you show creditworthiness, which leads to a higher score.
Janna Fox CEO of ReScore
1300 E 104th St. Ste 250 Kansas City MO 64131