2006-06-14 08:16:44 · 8 answers · asked by Eric R 1 in Business & Finance ➔ Credit
you can either pay off your debts or at least get them below 50% of the total balance. Most people don't know that once your balances exceed 50% on your cards, it sends a red flag to creditors and it starts lowering your score incrementally as long as you are over the 50% threshold. my suggestion is to go ahead and buy the house if you can now. You''l be hit with a high interest rate most likely but will still be able to get the house despite your credit situation. Also, you could get, instead of a standard 80/20 or 15yr/30yr fixed loan, a I/O loan (interest only) wherein you would only pay the interest per month of your loan amount. You wouldn't be making any payments on your loan amount itself but your monthly payments would be low enough where you coudl get your credit and debt situation fixed. Once your I/O period expires, refinance to a standard 30yr fixed loan which you should be able to get a better rate since your credit score would have imroved by that time.
2006-06-14 08:26:42 · answer #1 · answered by Thank You..Come Again 2 · 1⤊ 0⤋
Indeed-keep your credit card payments below 50% of the available balance. As for getting a second job it will help you pay your bills but unless you have been there for at least 6 months, many lenders will not allow the use of that income to qualify. Again, no need to pay off all of your credit cards, just make sure you pay on time. As for your credit score, there are many loan underwriting programs out there that you will get the same rate regardless of a 690 or a 810 credit score. Good luck.
2006-06-14 08:55:26 · answer #2 · answered by unclejesse1 3 · 0⤊ 0⤋
Get a copy of your credit report first and go over it and make sure it is correct first. Know your credit score. Maybe get a part time job to show an increase in your income. Do not create any more debt. Good Luck
2006-06-14 08:21:15 · answer #3 · answered by roeskats 4 · 0⤊ 0⤋
Don't close credit accounts -- it is a myth that it helps your credit rating. You are valued on what % of your total credit you are using, so shutting down an account raises that %.
Get a credit counselor -- this is never reflected in your FICO score and they can help clear up mistakes on your report (http://search.yahoo.com/search?p=credit+counselor)
If there is a reason you didn't pay a debt, the credit reporting agencies will add a note if you request one (e.g., merchandise not received, fraudulent merchant)
2006-06-14 08:28:59 · answer #4 · answered by Dave V 2 · 0⤊ 0⤋
Pay all your accounts ahead a couple months. Pay off credit cards instead of just the minimum payment, too. Open a new credit card, buy something big and then pay it off all at once.
2006-06-14 08:21:17 · answer #5 · answered by dewitthm 2 · 0⤊ 0⤋
Well you should def. have credit before buying a house, but I'd open up some credit cards like Dillards, etc and buy small things that you need ex. socks, and then pay it off right away. Otherwise we use Tulsa Federal...Its a bank with low interest. we love them!!!
2006-06-14 08:20:19 · answer #6 · answered by alyssa_the_great21 3 · 0⤊ 0⤋
open credit cards
2006-06-14 08:17:47 · answer #7 · answered by dirtee diamondz 3 · 0⤊ 0⤋
Pay off your bills.
2006-06-14 08:20:34 · answer #8 · answered by Anonymous · 0⤊ 0⤋