Nothing too sinister on there, just used to be pretty bad at paying bills on time.
Looking to apply for a mortgage in spring and would like to bring my credit upto scratch.
2007-12-19 05:45:22 · 8 answers · asked by stepheneuro 2 in Business & Finance ➔ Personal Finance
gaffer tape
2007-12-19 05:56:13 · answer #1 · answered by Anonymous · 1⤊ 1⤋
I have instructed many on this very subject. You are on the right track if looking to apply for a home mortgage this spring. Many wait until they are ready to purchase only to find they have to wait a couple of months.
Contact a good mortgage broker. They will "pull" your credit report for all three agencies with scores. Mortgage loans use the middle score of the three to determine rate of interest, etc. The mortgage broker will explain the process and hopefully guide you to get the best possible rate and loan. Remember, it is not only your credit rating but a number of factors involved.
A good mortgage broker will assist you monthly reviewing your credit to insure accuracy from instructions on procedures to take. Follow their suggestions and do it promptly. They will also give some idea of monthly payments which, in most cases, include homeowners insurance and taxes per month. If you borrow over 80% of the value you will have, monthly, PMI (Private Mortgage Insurance) as well in a lot of cases.
Do not just payoff and cancel items on your credit report. This will hurt (decrease) your score. From now until you "close" do nothing to add credit if your goal is to purchase in 2008. This means no new automobile until you "close" and you are a home owner.
SEE THAT MORTGAGE BROKER NOW!
2007-12-19 14:49:45 · answer #2 · answered by Bruce T 5 · 0⤊ 0⤋
1. Be sure your credit report is correct, (for free at www.annualcreditreport.com)
2. Pay your bills on time from now on
3. Find a way to pay off Installment loans (like a car loan) and don't take any new ones.
4. Pay down your balances on credit cards / store cards.
5. Apply for one or two more credit cards and Never Use them. (this helps your ratio of used credit / available credit)
2007-12-19 13:53:14 · answer #3 · answered by Joe K 3 · 0⤊ 0⤋
Visit below website which gives some very simple and brilliant advice, include sample letters to send to the 3 most used credit checking agencies to check your score. It may not be as bad as you think.
Also, I found my building society more than helpful, they accepted a letter explaining a couple of defaults on my partner's credit record, and were happy to continue with the mortgage because we were able to explain the reasons behind the default's and they were happy to accept that they had not recurred nor were likely to. Its a balance of risk for them and if you are genuine enough the loans manager may be willing to take a risk on you if you give them enough good reason to.
2007-12-19 18:18:23 · answer #4 · answered by Anonymous · 0⤊ 0⤋
If you have an overdraft or credit card, use it a week or less before your pay day, then on pay day pay it all off in full.
Pay bills on time.
Don't take any other loans/overdraft's/credit cards out.
Pay the £2.00 to get your credit report if you haven't already. (well worth it)
2007-12-19 13:49:41 · answer #5 · answered by Humza 5 · 0⤊ 0⤋
Check out credit expert online for a small fee thay can give you a comprehensive report and give you solutions to help you out, i am british army and lived in germany for 12 years and when i returned to uk my credit history was poor, i couldnt even get a loan from my bank whom id been with for yearsm credit expert sorted me out, its woth a try.
2007-12-19 13:54:49 · answer #6 · answered by The Doctor 2 · 0⤊ 0⤋
Not much you can do but be current on all your bills.
Your mortgage company may want an explanation, and/or will up the interest rate, and/or require more down payment.
2007-12-19 13:48:59 · answer #7 · answered by Prophet 1102 7 · 1⤊ 0⤋
pay off your bills before you end up in deeper sh1t
2007-12-19 13:49:44 · answer #8 · answered by Anonymous · 0⤊ 1⤋