Improve Your Credit Score Before Applying for a VA Loan .pdf
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Improve Your Credit Score Before
Applying for a VA Loan
The VA supports veterans, active duty members and surviving spouses to become
homeowners with their VA home loan program. To maximize benefits and ensure approval,
a good credit score plays a critical role. Taking steps to improve your credit before
applying for a VA loan can increase your chances of being approved. It can also help you
negotiate better terms regarding interest rates and down payments.
How can you improve your credit score? Here are three easy ways:
Eliminate excess balances. Carrying a balance on multiple credit cards can hurt your
credit score. Pay off most of your cards but do keep them open and designate only one or
two for all your balances. It’s better to have the fewest cards possible with a balance
instead of four or five credit cards with low balances of $20-$30.
Always pay on time. Paying on time is vital to your credit’s health. Anytime you are 30 days or
more past due on a payment, it’s reported on your credit score. Too many of these may cause it to
plummet quickly and low scores can be incredibly difficult and time consuming to repair or rebuild.
Avoid credit risks. If you already have decent credit, things like past due payments and
paying less than the minimum required can make a huge dent in your credit score. It’s very
important that you not apply for several cards or loans at once because each credit inquiry
can knock off points as well.
Raising your credit is a difficult task. But if you exercise self-discipline and determination
and stay consistent it will pay off in the long run. The biggest factor that needs to be
considered before you apply for a VA loan is timing. Keep in mind that each change you
implement to raise your credit score takes time.