How Do I Improve My Credit Score?

The U.S. Department of Veterans Affairs guaranteed home loan program helps veterans and active duty service members acquire homes ataffordable rates.

In general, the VA loan program is more lenient than conventional loans, but the process does require a minimum credit score.

Not everyone has a perfect credit rating, and you may need to take steps to improve your credit score before applying for a VA home loan.

Why Credit Scores Are Important?

Credit scores reflect past patterns of repayment on various types of indebtedness you have had, and usually concentrate their focus on the past two years.

Businesses report the patterns of their customers’ payment to agencies such as Equifax, Experian and TransUnion. The scores from these three credit reporting agencies are all slightly different.

The highest and lowest scores are thrown out, and the middle score becomes the one used for loan application evaluation.

The calculation of your credit score is made by applying an algorithm that was developed by the Fair Isaac Corporation, which is usually shortened to the term “FICO score.”

Does the VA Home Loan Program Have A Minimum Credit Score?

Although the VA guaranteed home loan program does not require a minimum credit score to qualify for a loan, lenders who offer VA home loans generally have a minimum credit score that is required for approval of an application.

These minimum scores are usually set at 620 or 640, depending on the lender.

If your middle credit score from the above reporting agencies comes in lower than this number, you should take active steps to improve your credit record.

Improving Your Credit Score

You can help raise your credit score to provide a more favorable payment outlook for a loan by implementing these measures:

Review your credit record for errors. Your credit record may contain old or incorrect information that is affecting your credit score currently.

Have the information corrected so that it no longer lowers your score.

You will have to provide supporting information about the payment of any indebtedness that is erroneously reflected on your credit record.

Pay off a bad loan; If you have a credit blot on your record, find a way to pay it off immediately, and make sure it is reported to the credit rating agency.

This action will help to improve a bad credit score.

Stop making late payments; This measure is one of the simplest ways to raise your credit rating.

Make sure important payments are made on time as soon as possible, and continue to pay them on time to keep your record clean.

Pay down existing balances; If you have a credit card with a $10,000 limit and you have used $5,000, using this much of the limit will hurt yourcredit record.

Pay the balance down to 30 percent to improve your record and avoid using the card.

Take a hard look at how you use credit; Do a thorough evaluation of how often you rely on your credit cards, and re-work your finances to utilize credit less frequently.

You may need to scale back your desires, hobbies and vacation plans to cut back your use of credit.

However, this measure will help to improve your credit rating in the near and far future.

Our VA Loan Specialist helps veterans obtain the loans they are entitled to.

He served in the United States Marine Corps, and now devotes himself to the Veteran home buyer in the Phoenix area, fulfilling a passion of his while at the same time helping others achieve home ownership.

Be a proud homeowner today.

For more details call 480-351-5904 or visit the site www.valoansforvets.com

VA Loans for Vets7702 E. Doubletree Ranch Road, Suite 220Scottsdale, AZ 85258Phone: (480) 351-5904Email: jimmyv@fcbmtg.com