How to Improve Credit Score for VA Loans in Chicago, IL

Author : Joan Gallardo | Published On : 24 Nov 2021

If you are a veteran or active-duty service member, there is not much to worry about. VA programs dedicated to military service members are the best loans considered in the market. But you must prepare for the credit score for VA loan in Chicago, IL. Why? Because most VA borrowers suffer from low credit scores! So, here are two things you should remember.

Payment History Affects the Score

Did you know your payment history is linked to your credit score? If you want to polish your credit report, start by looking at your score. The payment history takes 35% of the score. In case auto loan payments or other bills add up, it’s better to avoid due bills and make payments right on time. If you are behind the bills, this could leave dents on the credit score. You must understand that late payments are deadly, and things take a drastic turn if payments pass more than a month.

The smartest way to avoid the consequences of unpaid bills is to pay just when they are due. In any case, you need a few additional days to clear payments, it will not leave a negative impact on the credit. Things are likely to go smoothly if you have a chat with the account holder.

Furthermore, making payments on time leaves the highest impact. Maintaining this habit will only ensure an excellent credit score. The higher your credit score is, the quicker you will get approval. If paying down the bills is indeed an issue, it is best to have a word with your credit provider.

Beware of Credit Inquiries

If you have been thinking of opening a credit line, take your time and think again. This is a careful step that can be heavy on your credit score. 10% of the FICO score depends on the new credit line. In case, there are several credit lines open over a short span, you may face the blows of a low credit score. While applying for a home loan, all these inquiries add up as a singular inquiry. This means there will not be a huge impact on the credit score, but this happens on some rare occasions.

When looking at a new credit line, you must keep inquiries together – in one place. A few financial institutions let you group inquiries together in order to avoid low credit.