Free Tips on Rebuilding - Repairing Your Credit
Scores and Credit History.
If
you are considering the purchase or refinance
of a new home, car or if you are applying for
a private money or Rehab Hard Money loan for the purpose
of investing in real estate you will definately
want to take some time in boosting your credit
scores and improving your credit history...especially
in today's financial markets when the opportunity
to qualify for a loan is limited.
Your credit scores are extremely important in
qualifying for any type of loan and just by simply
taking a little time you can quickly raise your
scores potentially saving you $1000's in finance
costs.
What most people don't realize is that you can
easily increase your scores by 20, 30, 50 or even
100 points by simply carrying out a few tips that
I've laid out below...
Your first step in fixing or establishing your
credit is to find out your credit scores and to
view history on all 3-bureaus...
rehab100.com Recommends:
Once you've pulled your credit report and understand
what you are looking at...only then will you be
able to assess the situation and begin raising
your scores.
When Viewing Your Report, Make Note
of The Following Items:
Credit Accounts That Are Not Yours?
Accounts that are more than 30 days late?
Charge Off Accounts w/Existing Balances?
Balances that exceed Your Account Limits?
Account Limits on Each of Your Accounts
Take
The Following Action:
If
you find credit accounts that are not yours,
have them removed from all 3 bureaus by submitting
a "dispute resolution" form offered
through most credit reporting agencies.
If
you have accounts that are more than 30 days
late, make sure this reporting is accurate...if
not accurate, submit a dispute resolution
and have these 30, 60, 90, or 120 day late
entries corrected.
If
you have "charge off" accounts that
are more than 3 years old....do not do anything
to correct them unless the balances are less
than $100.00. If less than 3 years old and
the cost to correct this is less than $500.00
through settlement agreement or reduced payoff...you
may want to consider paying it off so long
as the creditor agrees to remove the derogatory
entry and set the balance owed to "zero"
this may be something to consider. Be sure
to get agreements in writing with creditors
prior to making payoff arrangements. Creditors
typically will agree to settlements of 20%-30%
of the total amount owed.
Check
account limits against the amount you borrowed
for each of your creditors. If you are over
your limit, pay it down as much as possible
so that your amount owed does not exceed 1/3
to 1/2 of the allowable limit. If you have
larger account i.e. 10k, 15k or 20k then this
may not be an option, but if you have several
1k, 2k and 3k accounts and you have the ability
to reduce the payoffs and or pay them down
by 1/2 then your scores will improve. Also,
you may want to consider contacting each of
your creditors and asking them to increase
your limits {but if approved do not use the
credit card}. This option allows you extra
points simply by rasing the limit over the
amount you owe. The key is to not use the
extra credit line extension and to work from
that point to pay the account down further,
you so your limit is at least 1/2 preferably
1/3 of the allowable limit.
If
you have less than 3 credit lines and their
balances are less than $500, you may want
to consider opening secured and unsecured
credit lines. We suggest qualifying for a
100%
guaranteed visa card or possibly one of
the following cards found here.
...by
simply doing these few items, you can quickly
increase your credit scores. We suggest that you
keep all accounts open or if part of the negotiation
for paying off the account is to close it at a
much reduced payoff then you will most certainly
need to reestablish new credit with several guaranteed
approved credit cards.
Foreclosures
