I want to buy a house and need a higher credit score for no money down and low apr
2006-06-21 12:23:35 · 8 answers · asked by dido45dido 3 in Business & Finance ➔ Credit
#1) Pull all your reports. Not online, request actual physical copies. They usually contain more than what an online report does. This will give you a start on where you need to go with your reports. Also, keep them. Never toss them. They are proof later on if you need them to refer to if you ever get into a legal situation regarding your credit (lawsuit etc).
#2) Dispute. Dispute anything that is not correct including, balance amounts, lates, etc. If you have only one or two lates, I would call your creditor and see if you can get them removed via goodwill gesture, or send a goodwill letter. You can find some great letters on some of the credit boards like creditnet.com and creditboards.com.
#3.) Collections? If you have any collections on your account or anything that should not be there, send a DV (debt validation) to the creditor asking to prove the debt. If they cannot, they have to remove the debt off of your report by law.
#4.) You have rights - check out http://www.ftc.gov/os/statutes/031224fcra.pdf for more info.
#5.) check out some of the posts on creditnet.com and creditboards.com for assistance.
#6.) If you have no credit, or want a temporary boost - have a family member or really (really, really, really) close friend add you in as an authorized user on their credit cards. Make sure the balances are not high, otherwise this could hurt you more. The higher the available credit, the more your utilization will go down on your report - therefore bumping your score.
#7.) Avoid unnecessary inquiries. Hard pulls can hurt you, so avoid applying for new credit cards until after you buy your home.
This of course is a shortened version of things you can try. Research info on those links I provided you. You can increase your score spending just a short amount of time per week, sending letters to creditors etc. I increased my score over 100 points in less than 6 months. Depending on your situation, this could take shorter or longer time, but at least you have somewhere to start. Good luck!
2006-06-21 14:38:35 · answer #1 · answered by eloriarl 2 · 2⤊ 0⤋
Every time you apply for credit, you will see your score drop due to the inquiry. It usually takes about 6 months to a year for that inquiry to have little or no impact on your scores.
The easiest way to increase your credit score is to have someone add you as an authorized user to their card(s). A family member perhaps. Just be sure whatever card you are added to has an excellent history and low utilization.
You should see your score rise when they start to report.
2006-06-21 12:57:33 · answer #2 · answered by echo 7 · 1⤊ 0⤋
If you are looking within the next year and you already have existing credit, you need to pay as many of your signature loans (credit cards, student loans, etc) off as soon as you can. Look for any credit problems you have on your credit report that might have been on your report for sometime and see if it is after seven years. If so, you can request that they remove it from your report which can increase your score depending on if they were reports for debts that were not paid on time. Best of luck to you.
2006-06-21 12:55:33 · answer #3 · answered by justme 2 · 0⤊ 0⤋
I was told by my loan officer that your credit score is bumped up 27 points each time you pay off a debt that is on your credit report. Some old things may be taken off of your credit report, and some things can be disputed.
2006-06-21 12:36:47 · answer #4 · answered by andieangel2003 2 · 0⤊ 0⤋
Check your credit report for any errors. If there are any, discuss this with the lender. They can work a quick re-score that will clear the invalid information and bring your score up. Only the lender can do this for you. There will be fees, but they're usually modest, about $50.00 per item if memory serves.
2006-06-21 14:19:38 · answer #5 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Pay all your payments and debts on time. Also if you buy other things like car and pay it on time that will raise ur score fast. Good luck
2006-06-21 12:37:44 · answer #6 · answered by lady jewels 2 · 0⤊ 0⤋
As far as I know, there is no quick way. It is a long process and is generally taken as of a few months prior. Increasing your annual salary is probably the quickest way I know of.
2006-06-21 12:26:38 · answer #7 · answered by Brandon 1 · 0⤊ 0⤋
Get as many credit cards as you can, and pay them all on time.
2006-06-21 12:28:01 · answer #8 · answered by Clogged-Up 6 · 0⤊ 0⤋