When you are trying to increase your credit score – TIME is a big factor.
How long has it been since you missed a payment. For Car Loans and Mortgage Loans – that number MUST be 12. Meaning you have NO LATE PAYMENTS in the last 12 months.
Right now this is the most important part of increasing your credit score. Every month past that 12 month period helps get your score higher…
The OTHER issue with Time is if you haven’t had credit for very long. If you have less than 5 years on the total Length of Your Credit History you will probably not have a score higher than 720….
Time is the only thing that can improve this aspect of your scores, but you can manage it wisely. You will hear 2 conflicting things when you are trying to raise your scores:
- “Don’t open several new accounts in a short period, especially if your credit history is less than three years. Adding accounts too rapidly sends up a red flag that you might not be able to handle your credit responsibly.”
- “You need at least 3 open accounts to get a higher score.”
We have several models that help us judge the best ways for folks to improve their scores. If you are purchasing a home, you will need AT LEAST 2 scores over 600. If you want specific help – give us a call!