I make good money and desperatly want to buy a house. My credit score is way down there any suggestions.?

Question

I have been denied credit from mortgage companies. I have spoke with someone about cleaning up my credit but this is such a lenthly and costly process.................
I need some suggestions

Answer 1

First and foremost, stay away from expensive credit repair companies. Everything they can do to help, you can do also (FOR FREE).

Here are the steps:
1. Go to www.freeannualcreditreport.com
get a copy of your credit report, if you are dissallowed due to dates of when you last pulled your credit (for free), then go to the next step.

a. You have been denied credit, which qualifies you for a free credit report.

2. Carefully look through your credit report, look for things that are not true. Eg. Bill showing a balance that has in fact been paid off.

3. Look at the ages of collections, if they are older than 7 years contest it. Transunion, Equifax, and Experian will delete outdated accounts upon request.

4. Pay more than the minimun amount on your credit cards, and other accounts. If your min payment is say $15.00 then send in $20. Believe it or not, those few dollars make a bing difference in your score in a very short time.

5. Try to clear up any active collections. Try to deal with the origional creditor first (avoid dealing with the collection agency).

a. Mail a check to the origional creditor, use the orgional account number (DO NOT USE THE REF# from the collection agency).

b. Add "For Deposit only" to the back of the check, this prevents (or at least encumbers)the origional creditor from routing the check through the collection agency.

c. After the account is paid (the check clears the bank), contest the collection on youe credit report. When paid as stated it makes it difficult for the collection agency to fight to keep it on the report, most step back and let it go.

5. DO NOT close credit card, or other charge accounts (try not to run them up either). Your score is also based upon age of account, and credit limits.

a. The age is calculated by adding the ages of all of the accounts, then dividing by the number of accounts. The greater the age, the better the score.

b. Advailiable credit is also scored. This is accomplished by adding up all of your credit limits, and adding up all of your balances, then subtracting the balance total from the limit total. This amount is ideally around %35 (some lenders will allow up to %50).
Eg. card 1 $500 bal $1000 Limit
card 2 $100 bal $500 limit
Totals $600 $1500
Debt-to-ratio 600/1500=%40

c. Lastly, the number of accounts carring a balance is calculated. Using the above example; if you transferred the $100 balance to the card with the $1000 limit you debt-to-ration has not changed, but your number of accounts carring a balance has.

These are the things that the credit repair companies will do for a heafty fee. You can do this all on your own. Within 90 days you will see a very positive reflection in your score.

Remember this is days not years to correct and get you back on track.

Good luck.... :)

Answer 2

Pretty sure that you will find many financial clarification at= loandirectory.info-

RE I make good money and desperatly want to buy a house. My credit score is way down there any suggestions.?

I have been denied credit from mortgage companies. I have spoke with someone about cleaning up my credit but this is such a lenthly and costly process.................
I need some suggestions

Answer 3

Typically if someone has good income, they find ways around somewhat bad credit. So I am guessing yours is REALLY bad. In which case you should give yourself a little time to get your score back up there. Buying is not for everyone, especially with the market struggling as it is. Even if you do get approved, you will be paying very high interest and may just have been better off renting.

The other thought is to see if anyone with a good credit score who is willing to go in on the mortgage with you, like a family member.

Answer 4

For buying a house Credit History is much more important than credit score. Often, the lack of credit history is equated with bad credit. You should be aware that lenders will go through your credit report once you apply for loan for buying a house. Therefore you should polish your credit report. Anyway, in order to establish a good credit history and at the same time risen your credit score in a short time do following things:

1) Close all of your credit cards but one. It reflects in your credit report and it is a very good sign. For instance say that you have 5 credit cards with $1000 credit limit for each. Therefore you are responsible for $5000 of possible debt. But when you close 4 of them, now you are only responsible for $1000 of debt which lowers the level of risk of lending money to you.

2) If you have any loan, like car loan or any balance on your credit cards, try to pay more than your monthly payment for 6 months or something. I mean say your monthly due on your car loan is $150, try to pay $250 each month. Lenders can see these trends in your credit report and they see that you’re a responsible borrower.
If you don’t have such loans, I suggest getting a $3000-$4000 loan and paying it off in full in 5-6 months. You might pay $200-$300 of interest but you will save thousands of dollars in your home mortgage and interest rates.

Also checkout http://www.howtoestablishgoodcredit.com/Credit_Articles/index.php
There are lots of articles there, related to your question, which you can find useful to boost your credit.

Answer 5

Clean that credit up yourself. Make the most payment you can in advance of the due date. Don't wait until it is due to pay. Pay immediately. Pick out one debt and send extra. Pay one thing off asap. If it is a vcredit card, close the account after you pay it off. Whether you owe money on a credit card or not, potential lenders view it as if you do. If you have more than 2 cards, master card, visa, discover etc., get rid of some of them. You don't need department store credit cards, a visa will work there. Work diligently for 6 months to clean up your credit and you will see your numbers rise!!!!!!!!!!!

Answer 6

If you have a good chunck saved. Buy a home that is For Sale by owner. They charge more interest and a bigger down payment but you don't have to wory about a credit check.

Answer 7

The other thing that I would suggest is to place a HUGE down payment on the house, that way the mortage companies won't feel that they are taking "that" much of a risk since you're not going to be borrowing that much. Good luck!