Tag Archive for: boost your credit score

What you need to know about DSCR loan credit score requirements.

DSCR lenders do have credit score requirements. Your credit score is a crucial factor lenders consider when evaluating your loan application.

Credit is a way to put a number to how safe it is to loan to you. We call this “creditworthiness,” and it’s based on your credit history and financial behavior.

A higher credit score can significantly improve your chances of getting a DSCR loan and securing favorable terms, such as a lower interest rate and a higher loan-to-value (LTV).

DSCR Loans and Credit Score’s Impact

Here’s how your credit score can impact your loan options:

  • A credit score of 740 or above can get you a higher LTV ratio and lower interest rate.
  • A credit score between 700 and 739 may still qualify you for a loan with competitive terms.
  • A credit score below 700 might make it more difficult to get approved for a loan, or could result in higher interest rates and lower LTVs.

For example, a 740 score may get you an LTV that is 5-10% higher than a 640 score, and an interest rate that is .5-2% lower.

How to Improve Your DSCR Loan Credit Score

If you’re applying for a DSCR loan, a credit score below 700 might not cut it. It’s a good idea to take steps to improve your credit. 

Here are some ways to do that:

  • Pay down credit card balances: Putting all renovation costs on credit cards can drag down your credit score. To avoid this, consider getting a private loan that won’t show up on your credit report to pay down your balances. A better credit score can also lead to better rates for long-term financing.
  • Use an authorized user: If you have a family member or friend with good, long-established credit, ask them to add you as an authorized user. This can help boost your credit score.
  • Pay your bills on time: Payment history is a key factor in your credit score. Make sure to pay all your bills, including credit cards and loans, on time. Consolidating your accounts can also help you stay organized and avoid missed payments.
  • Keep open credit accounts: Even if you stop using an account, as long as it has a good history, it will continue to add a little boost to your credit.

By following these tips, you can improve your credit score and increase your chances of getting approved for a DSCR loan with favorable terms.

You can also download this free credit score checklist to get your credit score where it needs to be for your DSCR loans.

Read the full article here.

Watch the video here:

https://youtu.be/va6u-azRkFQ

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How To Boost Your Credit Score in 3 Easy Steps

How To Boost Your Credit Score in 3 Easy Steps

Let’s talk about 3 easy steps you can take to boost your credit score.

Now, what’s the big deal about credit scores? Well, think of it like a baseball game. You can hit it out of the park and claim victory…or strike out and lose.

How To Boost Your Credit Score in 3 Easy Steps

When you win the credit score game, you win countless opportunities. These include:

  • Good rates
  • Affordable loans
  • And, in the end, hundreds of thousands of dollars.

Yeah, really. Hundreds of thousands of dollars. Because a good credit score means cheaper bills that add up over the years.

So, what does a winning credit score look like? Ideally, you want to aim for 700 or higher. But the higher your score, the better your chances of taking home a big trophy.

Let’s take a look at 3 easy strategies to help you prepare for this financial game.

Increase Your Available Credit

Call your credit card company and apply for a higher limit. That way it’s easier to keep your credit usage at around 30%. What do we mean by that? Well, let’s take a look.

If your credit card balance is $800 and you have a maximum credit line of $1,000, then creditors can see you’re using 80% of your available funds…which, to them means you’re living on the edge and struggling to meet your financial obligations.

Ouch.

Now, if your credit card balance is $800 and you have a maximum credit line of $2,000, then creditors see you’re only using 40% of your available funds. Still not a home run, but you’ll definitely score a few runs.

Because the better your credit usage, the better you’ll look to creditors. They’ll see you as someone who’s financially responsible. AKA, you pay your bills.

Pay Extra

A large part of your credit score is based on your monthly reported balances to the credit bureaus.

If you can find cash to pay down extra on your credit card before your next statement due date, then the credit bureau will be very happy with you. And your credit score will go up.

If those first two strategies don’t work for you, then you can always take a third approach.

Get a 60 to 90 Day Note

You can get one from a bank, a family member, a friend, or a private lender—like us! Use the funds to pay down or pay off your credit cards so you can keep your projects moving along. And your cash flow…well, flowing!

If you take one, two, or all three approaches to boosting your credit score, then we can guarantee you will knock it out of the park and win the credit score game!

Happy investing!

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