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?
.
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.
.
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.
Blogs
The Top 5 Mortgage Mistakes to Avoid
Buying your first home can be both exciting and nerve-wracking at the same time. With so many things to consider and....
Mortgage Do and
Do not list
Mortgages can be tricky, and it's easy to make mistakes that can end up costing you dearly. That's why we've put together this list....
Tips On How To Improve Your Credit Score
Let's talk about some ways you can improve your credit score! Your credit score is actually a big deal, and it can affect...
💸 What Is Debt Yield & Why It Matters in CRE Financing 🏢
💸 What Is Debt Yield & Why It Matters in CRE Financing 🏢
📊 Understanding Debt Yield: The Key Metric Every Lender Watches 👀
💡 Introduction
In commercial real estate (CRE) lending, few metrics carry as much weight as debt yield. Whether you’re an investor seeking financing or a broker structuring deals, understanding this metric is essential. Lenders rely on it to gauge the true risk of a loan — independent of market volatility or property appraisals.
🔍 What Is Debt Yield?
Debt yield is a measure of a property’s net operating income (NOI) relative to the total loan amount. It shows how quickly a lender can recoup their investment if they were to take ownership of the property.
Formula:
Example:
If a property generates $1,000,000 in NOI and the loan amount is $10,000,000, the debt yield is 10%.
This means that — ignoring all other factors — the lender would earn a 10% return on their investment from the property’s income alone.
💰 Why Do Lenders Care About Debt Yield?
Debt yield gives lenders a pure measure of risk. Unlike loan-to-value (LTV) or debt service coverage ratio (DSCR), it’s not influenced by appraisals or interest rates.
Here’s why lenders love it:
1.Objective Risk Assessment:
Debt yield focuses solely on the property’s income, providing a clear view of financial stability.
2.Market-Neutral Metric:
It doesn’t depend on changing property values or cap rates — making it consistent in volatile markets.
3.Default Recovery Insight:
A higher debt yield means lenders could recover their investment faster in a foreclosure situation.
4.Regulatory Benchmark:
Many lenders set minimum debt yield requirements (8–10%) for CRE loans, ensuring the property can sustain performance through downturns.
📈 Typical Debt Yield Benchmarks
·Conservative lenders (banks, life companies): 10–12% minimum
·Bridge or private lenders: 8–9% acceptable
·High leverage or value-add projects: May drop to 7–8% depending on exit plan
Debt yield requirements tighten as market uncertainty rises, which is why strong income-producing properties attract better financing terms.
🧩 Debt Yield vs. DSCR: What’s the Difference?
While both measure loan safety, DSCR focuses on monthly cash flow coverage (NOI ÷ Debt Service), while Debt Yield focuses on overall loan exposure (NOI ÷ Loan Amount).
Lenders use both to cross-check a deal’s health, but if one metric tells the truth in turbulent times — it’s debt yield.
🏦 The Medallion Funds Advantage
At Medallion Funds, we understand what lenders are really looking for. Our team structures deals to meet or exceed debt yield and DSCR thresholds — giving you access to better rates, higher leverage, and faster approvals across 600+ lenders.
📅 Schedule a strategy call today to see how we can optimize your next deal.
🔗 https://billrapponline.com
✅ Conclusion
Debt yield might sound like a technical metric, but it’s the heartbeat of every commercial real estate loan. By mastering it, investors and brokers alike can position their deals with confidence — and speak the language lenders respect most: risk-adjusted return.
https://www.billrapponline.com/
https://findamortgagebroker.com/Profile/WilliamRappJr28883
https://billrapp.commloan.com/
https://billrapponline.com/financingfuturescre-houston-katy
https://houstoncommercialmortgage.com/
https://author.billrapponline.com
https://doctorvideo.billrapponline.com/
https://veteransvideo.billrapponline.com/
https://mortgageviking.billrapponline.com/
https://fha203h.billrapponline.com/
https://renovationvideo.billrapponline.com
https://medallionfunds.com/bill-rapp/
https://www.amazon.com/dp/B0F32Z5BH2
https://veed.cello.so/FOmzTty6oi9
https://creplaybookseries.billrapponline.com
https://creplaybook.billrapponline.com/
© 2023-2024 Bill Rapp, Medallion Funds LLC, Director of Capital Advisory
10 Tips for First-Time Homebuyers
Buying your first home can be both exciting and nerve-wracking at the same time. With so many things to consider and....
How To Choose the Right Lender for You
Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy
Refinancing youe loan and when to do it
Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy
🧮 Renovation ROI Calculator
🛠️ Renovation ROI Calculator 💰
Copyright ©2021 | 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 © 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 ©2021 | 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/