Good Credit for Rental Property Investment
As a rental properties investor, it is extremely important that you have good credit. After all credit score impacts massively on your ability to obtain financing for that next rental property purchase. Finding a Edmond Property Management company can also be tricky, that is why Real Property Management Enterprises is here to help every step of the way with know all about good credit for rental property investment.
So what can you do to maintain good credit and ultimately achieve your investment goals?
Get a business credit card
Having a business credit card that you use for everyday business expenses can greatly boost your credit score. A dedicated credit card not only helps to monitor your monthly expenditures more closely, it also keeps your credit score where you need it to be. Just make sure the total amount of your credit line used is below 30 percent every month.
Keep balances low
Apart from using credit lines, it is also vital to keep your ratio of available credit to credit balances relatively low. Lenders are always concerned with two things: your total debt; and the amount of that debt relative to your available credit. So keep at least half of your available balance on each credit card or other unsecured account.
Pay bills before due date
Another simple but highly effective trick. Pay all of your credit card and loan payments on time to boost your credit score. Avoid late payments since they negatively impacts your credit which makes it harder to obtain financing at the lowest interest rates. This, in turn, could limit which lenders you are able to use for your next real estate deal.
Manager your credit report
An active management of your credit report can also help to ensure it is always in good shape. Learn and put into practice the 5 FICO factors of credit. Also, coordinate with your lenders to make sure that they are reporting positive activities, like on-time payments. Have a system for tracking, managing and reporting your credit such as online tool. This will allow you to dispute any mistakes that you find on your credit history before your lender needs to see it.
At RPM Enterprises we will handle all the details of a Edmond Rental home for you! Just give us a call anytime! We have a management team that is prepared to assist!
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