Help us help you.
We have been in the real estate investing arena for a long time. We know what it takes for our clients to be successful. And when it comes to qualifying for our best rates and terms, your financial track record and overall creditworthiness are a big piece of the puzzle. While we don't have specific income requirements, we realize that a strong credit history demonstrates financial responsibility and reduces risk for both borrowers and lenders.
Why Your Credit Score Matters
Your credit score is a numerical representation of your creditworthiness. It reflects your ability to manage debt and make timely payments. A higher credit score opens the door to better interest rates, more leverage, and increased borrowing power.
Tips to Improve Your Credit Score
Here’s what we tell our borrowers when they come to us for actionable advice:
🎯Pay Your Bills on Time: This is the single most important factor impacting your credit score. Late payments can significantly damage your credit history, so prioritize timely bill payments.
🎯Keep Your Credit Utilization Low: Your credit utilization ratio is the percentage of available credit you currently use. Aim to keep this ratio below 30% to demonstrate responsible credit management.
🎯Build a Positive Credit History: The length of your credit history matters. If you have a limited credit history, consider opening a credit card and using it responsibly to establish a track record of on-time payments.
🎯Avoid Hard Inquiries: When you apply for new credit, lenders often perform a "hard inquiry" on your credit report, which can temporarily lower your score. Minimize hard inquiries by only applying for credit when necessary. Don’t worry. NavCap doesn’t pull your credit history until you submit a full application and accept our conditional offer.
🎯Keep Old Accounts Open: Closing old accounts can shorten your credit history–a vital component of your credit score. Instead of closing accounts, keep them open and use them occasionally. Regular activity on old accounts showcases a long credit history and responsible credit usage.
🎯Dispute Errors on Your Credit Report: Regularly review your credit report and dispute any errors you may find. This seems obvious but you’d be surprised how many people don’t take to time to review their own report.
Remember: Building a good credit score takes time and consistent effort. By following these tips and managing your finances responsibly, you can improve your creditworthiness and access better loan options for your real estate investments.
Partner with Navigator Private Capital
At Navigator Private Capital, we're committed to helping real estate investors succeed. Our team of experienced loan officers is ready to guide you through the loan process and find the best financing solution for your investment goals. Contact your loan officer today or call 888.444.3160 to be put in touch.
If you have a property in need of financing and want to get a free, no-obligation quote, click the link below: