Marah Macrocarpus Laguna Canyon, |
Fix your Credit
Everything spiny and thorny can be repaired
This post is one of several where I offer consumers methods to improve their FICO score to get a mortgage loan. FICO scores determine a part of the interest rate you can get on a home loan. If you are shopping for a house in Newport Beach, Laguna Niguel, or anywhere it is time to do a tune up on your FICO BEFORE you get into contract or apply for a mortgage.
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Opt out don’t let them
pull your credit and leave your information in a dumpster, don’t give people
your full social security number and full driver’s license number.
http://www.consumer.ftc.gov/articles/0148-prescreened-credit-and-insurance-offers/
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Apply for a secured credit card: If your situation is that you will not qualify for an unsecured credit
card, than a secured credit card may be a great option. Secured credit cards
require a deposit into an account to serve as security for the card ($500 or
terms according each individual bank). Make all payments on time, as months pass the
history boosts your score.
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Become an authorized user on a family members’ credit card: Being added as an authorized user on a family members’ credit card can help add positive credit. When added as an authorized user, you will be issued a credit card (which I would encourage you DO NOT use) and that trade line will begin being reported on your credit bureau. As time goes forward, you can benefit from the family member’s positive credit. Make sure the family member is using that credit card responsibly so that you are benefiting from a positive score.
Become an authorized user on a family members’ credit card: Being added as an authorized user on a family members’ credit card can help add positive credit. When added as an authorized user, you will be issued a credit card (which I would encourage you DO NOT use) and that trade line will begin being reported on your credit bureau. As time goes forward, you can benefit from the family member’s positive credit. Make sure the family member is using that credit card responsibly so that you are benefiting from a positive score.
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Credit Unions:
Establishing positive credit requires a mix of credit types (revolving and
installment). Often times, credit unions are a more gracious in dealing
with consumers with less than stellar credit. Apply for a small ($500 or less), short term (12 months or less)
installment loan which, when properly repaid, can add valuable points to the
credit score.
· Keep your balances low on unsecured revolving debt like credit cards. High balances still owed can affect a score.
· The amount of unused credit is an important factor in calculating your score. You should only apply for credit you need.
· Make sure the information on your credit report is correct. If it is not, dispute it with the Bureau Company or lender directly.
· Removing negative accounts on your credit report has the biggest impact on your score.
· 30% Amounts owed
· 15% Length of credit history
· 10% New credit
· 10% Type of credit
You must use credit in order for it to report to the bureaus
this is one of 4 posts about credit repair also see http://cgbarbeau.blogspot.com/2010/05/fix-your-fico-free.html