So your credit score has taken a hit recently and you’re worried about your ability to get approved for a mortgage or business loan. Don’t panic just yet. There are concrete steps you can take to boost your score and open up more lending options. Within a few months of diligent work, you can increase your score significantly and put yourself in a position to obtain financing, even if you’ve been turned down by traditional banks. Hard money lenders in Denver, CO specialize in providing short-term loans to borrowers with less than perfect credit, but you’ll still want the highest score possible to get the best rates. Follow these proven methods for fixing your credit and you’ll be signing loan documents before you know it. The road to financial recovery starts here.
Tips for Improving Your Credit Score to Qualify for Hard Money Lenders in Denver
Your credit score is one of the most important factors that determines whether or not you’ll qualify for a hard money loan in Denver. The higher your score, the better your chances and terms will be.
First, check your credit report and score to understand where you stand. Look for any errors that could be dragging your score down and dispute them. Pay off high-interest debts like credit cards to lower your credit utilization ratio. The less you owe compared to your limits, the better.
If needed, you can take out a small installment loan and pay it back on time to build your credit history. You can also become an authorized user on someone else’s credit card account, like a family member with good credit. Their responsible use will reflect well on you.
Don’t apply for too many new credit accounts quickly, as this can hurt your score. New credit inquiries make up 10% of your score, so only apply for new financing when needed.
Once you’ve checked your reports, paid down balances, and taken steps to build credit, check your score again. If it’s above 620, you’ve got a good chance at qualifying for a hard money loan. Scores of 650 and up will get you the best rates and terms.
Keep working at it and be patient. Building good credit is a marathon, not a sprint. But the effort will pay off when you’re approved for that hard money loan in Denver and on your way to an exciting new investment!
How to Qualify for Hard Money Loans
To qualify for hard money loans in Denver, you need to take action to boost your credit score. Here are some tips:
Check your credit report for errors. Dispute them with the credit bureaus to get them corrected, which can raise your score.
Pay down your credit card balances. Keep balances low relative to your limits, ideally 30% or less. High balances hurt your score the most.
Do not close unused credit card accounts. Close only accounts you do not trust yourself with. Closing accounts shortens your credit history and lowers your score.
Pay all bills on time. Payment history is the biggest factor in your score. Set up autopay or reminders to avoid missed payments. Late or missed payments severely damage your score.
If needed, you can take out a small installment loan and pay it back on time to build a good payment history. But only borrow what you can afford to pay back.
You may want to check with credit counseling agencies for guidance on managing debt and improving your financial habits. They can help you create a customized plan to rebuild your score in a responsible way.
Conclusion
With time and consistent good financial behaviors, you can improve your score significantly. Most hard money lenders want to see scores of 600 or higher. Keep at it, check your progress regularly, and don’t get discouraged. With discipline, you can qualify for a hard money loan in 6-12 months or less. Stay determined!