9 Ways to Help Clients Improve Credit Scores

Being a real estate professional isn't just about getting listings and showing houses. Many times, you'll also need to help develop prospective buyers – turning them from renters into homeowners by coaching them on their credit and how to improve their access to financing.

It isn't about getting them into bigger loans than they can afford. It's about maximizing their choices (and your commissions). The bottom line: The better your clients' credit score, the lower the interest rate, and the bigger the mortgage they will qualify for at any level of income.

Many real estate agents and brokers are facing an uphill battle when it comes to credit. According to a recent survey from the Corporation for Enterprise Development, the majority of Americans have subprime-level credit scores. Simply put, America's credit sucks.

With today's tools, there's no reason for any buyer, or real estate professional helping a buyer, to get surprised by a credit turn-down when applying for a mortgage to buy an owner-occupied home. If the buyer doesn't walk in with a prequalification letter in hand, always run a credit check and address any issues on the front end. Here are some steps to help make the credit process easier, for both of you.

1. Check Your Client's Credit

How can you run a credit check? It's easy nowadays. First, everyone is entitled to one free credit report per year from each of the major credit bureaus. If a client doesn't have a recent one handy, the beginning of the house hunting process is a great time to pull it.

Second, you can use the credit bureau services themselves. For example, Experian Connect allows real estate professionals to review a client's credit report and score. The client pays a fee of $14.95.