I remember the day I got my first credit card in the mail, I was 18 and it felt like a right of passage, I was finally an “adult”. Unfortunately, I had no idea how credit worked or how important it would be in my adult life. It quickly got out of hand and after a few years of treating the plastic cards in my wallet as free money, I had a very low credit score.
It wasn’t until I was in my mid-twenties with a baby on the way that I truly realized the importance of my credit score and regretted the hole I had dug myself into. My husband and I were a couple who thought nothing about living in apartments for rent in Elizabeth NJ as we traveled and enjoyed knowing that our rent payment also came with not having to worry about everyday house maintenance who was quickly transformed into a family who wanted to buy a home and lay down some roots. However, my husband was still building a credit history after becoming a U.S. citizen and my credit score was too low for mortgage companies to consider us.
I began working on raising my credit score and building my husbands credit history immediately. I checked my credit reports for mistakes, paid down debt, and settled old accounts and slowly my credit began to improve. It took time and we ended up renting a home for a few years before our dream came to fruition, but we are now homeowners and have been for years. I am sharing my credit repair tips below to help you move towards your financial goals.
Every time you apply for a new credit card it puts an inquiry on your credit report which negatively impacts your credit score.
Pay Your Bills on Time
This may seem like an obvious one, but I remember laying in bed remembering a bill was due and thinking “ugh ok I’ll pay it tomorrow” or next pay cycle.While a late payment or derogatory mark from a creditor may seem harmless, it can have long-standing consequences, in some instances staying on your report for seven years.
Lower Your Debt
Stop paying the minimum payment on your credit cards and try to lower your debt quicker.
Look at Your Credit Report
You can get a free copy of your credit report from all 3 credit bureaus each year. Pull each one and look over them for errors that you need to dispute. When I first pulled my credit reports I found accounts that listed multiple times, addresses that were wrong, and even an account that wasn’t mine. I need to get these items fixed and removed from my credit report so that my score would increase.
Hire Professionals
The credit repair process can get overwhelming and you want to make sure that all 3 credit bureaus are reporting the correct information which can change as you work to rebuild your credit. I’m guessing that since you are reading this you know the importance of a good credit score so why not have professionals on your side to help you navigate the process? Lexington Law Firm is the oldest and most respected name in credit repair, and the only player in the category with the legal experience and technology to both advocate and drive results for consumers.
About Lexington Law Firm
Repairing your credit can be tricky and having professionals like Lexington Law Firm on your side is a game changer. The credit repair industry has grown substantially in recent years, which means there is a lot of incorrect information floating around but Lexington Law Firm will help you learn about the errors on your credit report that can and need to be fixed because they believe you have the right to a fair, accurate, and substantiated credit report. Lexington Law Firm uses their knowledge to fight for their clients’ rights during the credit repair process which makes the repair process easier and less stressful for you.
Why You Should Choose Lexington Law Firm
Not only can the credit repair industry be hard to navigate, but it can also be expensive. As a CROA compliant organization with packages that meet every client’s needs, starting at just 24.95 a month Lexington Law Firm is both affordable and trustworthy. Plus they have long-standing relationships with all three of the credit bureaus: Equifax, Experian, and TransUnion. These relationships and deep expertise about how getting errors removed works, enable the team to communicate more efficiently for their clients and makes them the right choice to help you in the credit repair process.
Are you ready to repair your credit work toward your financial goal?
In many cases, it can take at least two years after a negative credit event to be eligible for a mortgage, either as a first-time buyer or having had a previous mortgage.
In many cases, it can take at least two years after a negative credit event to be eligible for a mortgage, either as a first-time buyer or having had a previous mortgage.
It is possible for consumers tofix their credit score in as little as three to six months. How quickly you can repair credit to buy a house will depend on your current credit score, how quickly you can pay off total debt, and whether you can become an authorized user.
What credit score is needed to buy a $300K house? The required credit score to buy a $300K house typically ranges from 580 to 720 or higher, depending on the type of loan. For an FHA loan, the minimum credit score is usually around 580.
There may be ways to build your credit fast if your score is lower than you'd like. Depending on what's holding it down, you may be able to tack on as many as 100 points relatively quickly. Scores in the "fair" and "bad" areas of the credit score ranges could see dramatic results.
For a conventional mortgage in California, you typically need a minimum score of at least 600. If you qualify for certain government-backed loans, however, you may be able to buy a home with a score as low as 500.
You'll typically need a credit score of 620 to finance a home purchase. However, some lenders may offer mortgage loans to borrowers with scores as low as 500. Whether you qualify for a specific loan type also depends on personal factors like your debt-to-income ratio (DTI), loan-to-value ratio (LTV) and income.
What credit score do you need to get a mortgage? Mortgage lenders typically want to see a score of 620 or better before approving a conventional mortgage. There are government-insured mortgages if your score is lower, and if your score is 760 or higher you'll qualify for the best interest rates.
As someone with a 650 credit score, you are firmly in the “fair” territory of credit. You can usually qualify for financial products like a mortgage or car loan, but you will likely pay higher interest rates than someone with a better credit score. The "good" credit range starts at 690.
It's a good idea to pay off your credit card balance in full whenever you're able. Carrying a monthly credit card balance can cost you in interest and increase your credit utilization rate, which is one factor used to calculate your credit scores.
Yes, it is possible to pay someone to help fix your credit. These individuals or companies are known as credit repair companies and they specialize in helping individuals improve their credit score.
If you're hoping to do a cash-out refinance, you typically have to wait six months before refinancing, regardless of the type of home loan you have. In addition, a cash-out refinance usually requires you to leave at least 20% equity in the home.
There are many factors that lenders consider when looking at your credit history, and each one is different. The typical timeframe is the last six years.
Mortgage underwriters will generally ask for one to two years of tax returns when you apply for a mortgage. If you are self-employed, you may be asked to provide additional documentation as proof of your income stability. Mortgage underwriters want to make sure that your income is stable before giving you a mortgage.
The minimum credit score needed for most mortgages is typically around 620. However, government-backed mortgages like Federal Housing Administration (FHA) loans typically have lower credit requirements than conventional fixed-rate loans and adjustable-rate mortgages (ARMs).
Introduction: My name is Lakeisha Bayer VM, I am a brainy, kind, enchanting, healthy, lovely, clean, witty person who loves writing and wants to share my knowledge and understanding with you.
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