Tips on How to Improve Your Credit Score
Hey folks, it's time to get real about your credit score. If you're anything like me, you probably don't pay much attention to it until it's time to apply for a loan or credit card. But did you know that your credit score can make or break your ability to obtain a mortgage loan?
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When you apply for a mortgage loan, lenders take a close look at your credit score and credit history. They want to know if you're a responsible borrower who will pay back the loan on time and in full. A good credit score can help you qualify for a mortgage loan with a lower interest rate and better terms, while a poor credit score can make it more difficult to get approved and result in higher interest rates and less favorable terms.
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In short, your credit score is one of the most important factors that lenders consider when deciding whether to approve you for a mortgage loan. By taking steps to improve your credit score, you can increase your chances of getting approved for a loan with better terms and save yourself thousands of dollars in the process.
1. Check your credit report regularly
This is a no-brainer, but it's worth repeating. Make sure to check your credit report for any errors or fraudulent activity. You can get a free credit report from each of the three major credit bureaus every year, so take advantage of it.
2. Pay your bills on time
This one seems obvious, but it's worth emphasizing. Late payments can have a big impact on your credit score, so set up automatic payments or reminders to make sure you're always on time.
3. Lower your credit utilization ratio
Your credit utilization ratio is the amount of credit you're using compared to your credit limit. Aim to keep your utilization ratio under 30% to improve your score.
1. Check your credit report regularly
This is a no-brainer, but it's worth repeating. Make sure to check your credit report for any errors or fraudulent activity. You can get a free credit report from each of the three major credit bureaus every year, so take advantage of it.
2. Pay your bills
on time
This one seems obvious, but it's worth emphasizing. Late payments can have a big impact on your credit score, so set up automatic payments or reminders to make sure you're always on time.
3. Lower your credit utilization ratio
Your credit utilization ratio is the amount of credit you're using compared to your credit limit. Aim to keep your utilization ratio under 30% to improve your score.
4. Increase your credit limit
If you're struggling to keep your credit utilization ratio low, consider asking for a credit limit increase. Just make sure not to use the extra credit as an excuse to spend more.
5. Diversify your credit
Having a mix of credit types (like a credit card, auto loan, and mortgage) can improve your credit score. But don't open new accounts just to add diversity - only take on credit that you actually need and can handle responsibly.
4. Increase your
credit limit
If you're struggling to keep your credit utilization ratio low, consider asking for a credit limit increase. Just make sure not to use the extra credit as an excuse to spend more.
5. Diversify your credit
Having a mix of credit types (like a credit card, auto loan, and mortgage) can improve your credit score. But don't open new accounts just to add diversity - only take on credit that you actually need and can handle responsibly.
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đ§ Liquidity Is King: Why Cash Still Beats Credit in 2025 đŚ
đ§ Liquidity Is King: Why Cash Still Beats Credit in 2025 đŚ
đ¸ Cash Rules Everything: How Liquidity Wins Over Credit in Mortgage Lending đ°
In mortgage lending, liquidityâyour access to cashâremains the most powerful financial tool in your arsenal. While credit can open doors, cash gives you leverage, stability, and control in a market where speed and flexibility often determine success.
đ§ Why Liquidity Matters
When markets shift or interest rates fluctuate, borrowers with liquid assets are in a stronger position. Lenders see cash as proof of financial discipline and lower risk, allowing for better terms and faster approvals. Whether youâre refinancing, purchasing, or investing, liquidity improves your debt-to-income ratio (DTI) and net worth position, both critical in underwriting decisions.
đ° Cash vs. Credit: The Real Difference
Credit represents potential borrowing powerâbut itâs not always dependable. Cash, on the other hand, represents immediate capability. A borrower with strong liquidity can:
¡Act quickly when investment opportunities arise.
¡Secure better interest rates and lower closing costs.
¡Negotiate more confidently with sellers or lenders.
This is especially true in competitive real estate markets, where âcash-readyâ buyers dominate multiple-offer situations.
đŚ How Lenders View Liquidity
At Medallion Funds, we see liquidity as more than just savingsâitâs a buffer against volatility. Even investors using leverage through DSCR loans or bridge financing benefit from healthy reserves. Liquidity gives you optionsâwhether to fund repairs, bridge a vacancy, or refinance when rates shift.
⥠The Bottom Line
In todayâs credit-driven economy, cash still wears the crown. Building and maintaining liquidity is the surest way to strengthen your financial foundation, reduce stress during underwriting, and take advantage of emerging opportunities in real estate.
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Š 2023-2024 Bill Rapp, Medallion Funds LLC, Director of Capital Advisory
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Copyright Š2021 | Mortgage Viking Team
Licensed to Do Business | NMLS # 228246
This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply. Copyright Š 2021 | Medallion Funds
Corporate | NMLS ID NMLS # 1825831
Corporate Address : 2651 N. Green Valley Pkwy STE. 101 Henderson, NV 89014
Corporate NMLS NMLS # 1825831 | Company Website: https://medallionfunds.com/bill-rapp/
Copyright Š2021 | Mortgage Viking Team Licensed to Do Business | NMLS # 228246
This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply
Corporate | NMLS ID NMLS # 1825831
Corporate Address : 2651 N. Green Valley Pkwy STE. 101 Henderson, NV 89014 https://medallionfunds.com/bill-rapp/