2007-03-21 04:21:48 · 4 answers · asked by Laura G 1 in Business & Finance ➔ Credit
For getting any kind of loan 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.
2007-03-21 10:53:07 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Laura,
I deal with some companies that can consolidate your debt into your refinance. Just shoot me an email to msmith@premierloangroup.com, and I'll see what I can do!
Marty
2007-03-21 04:34:08 · answer #2 · answered by Anonymous · 0⤊ 1⤋
i work with company that you can have a 500 fico score and still refinance. shot me an email i may be able to help you depending on what state you live in.
2007-03-21 04:34:05 · answer #3 · answered by cmruffin1 2 · 0⤊ 1⤋
Consolidate all you debt into one payment.
2007-03-21 04:25:01 · answer #4 · answered by tjnw79 4 · 0⤊ 0⤋