In this blog, we will cover and discuss how to boost your credit with new credit to qualify and get pre-approved for a mortgage. Gustan Cho Associates has helped thousands rebuild and increase their credit scores over the years. Over 75% of our borrowers at Gustan Cho Associates are folks who could not at other mortgage companies due to a last-minute mortgage denial, stress during the mortgage process, overlays on bad credit and/or credit scores, or because they could not qualify at another lender because they did not have the loan program. There are ways to boost your credit with new credit to qualify for a mortgage. The team at Gustan Cho Associates has helped thousands of homebuyers increase their credit scores with some quick fixes. We have also helped hundreds of borrowers get their credit scores to over 700 FICO scores in just less than one year after bankruptcy.
How To Increase Your Credit Scores Fast To Qualify For a Mortgage
If you do not qualify for a mortgage or do not meet a certain mortgage loan program due to being a few points shy of meeting the minimum credit score requirements, you can easily boost your credit with new credit. We will show you how to boost your credit with new credit and how it works. Adding positive new credit tradelines not only strengthens your credit profile but also increases your credit scores. The team at Gustan Cho Associates has helped thousands of our viewers and borrowers rebuild and reestablish their credit. Low credit scores are not just for qualifying for a mortgage but low credit scores mean tens of thousands of dollars in interest expense. Lower credit score borrowers have to pay discount points for credit scores under 600. The team at Gustan Cho Associates can help borrowers boost credit scores so they do not have to pay discount points due to bad credit.
Secured Credit Cards To Boost Your Credit With New Credit
One of the main reasons why consumer credit scores are low is due to not having any revolving credit tradelines. Secured Credit Cards are the easiest and fastest way of boosting credit scores. Consumers with no credit scores or low credit scores can easily boost credit scores with secured credit cards. Adding three to five secured credit cards with at least $500 credit limits can exponentially boost scores. Each secured credit card can raise 20 to 30 or more points. Adding three to five revolving accounts (credit cards) after bad credit, bankruptcy, or foreclosure is the easiest and fastest way in rebuilding and re-establishing your credit.
Timely Payments on Secured Credit Cards Will Get Unsecured Credit Card Approval
After your secured credit card season for at least six months with timely payments, you will be eligible to get approved for unsecured credit cards. After your secured credit card season for at least six months with timely payments and lower balances, many credit card companies will give you a credit increase. There are secured credit cards that will reward credit card holders if they make timely payments. Capital One and Discover are really good at rewarding their on-time payment card users with credit limit increases. The team at Gustan Cho Associates has helped many borrowers to achieve a 700 FICO in less than one year after Chapter 7 Bankruptcy was discharged by them getting three to five secured credit cards and one installment loan. We will show you how in this credit guide.
Boost Your Credit With New Credit To Maximize FICO To Qualify For Mortgage
Borrowers with under 600 credit scores can easily boost their scores by adding positive credit. Credit cards are the most powerful tool for rebuilding and increasing credit scores. Three to five credit cards is the number of credit cards every consumer should have to develop a strong credit profile. You should also have at least one installment loan. Diversity in having various types of credit tradelines will strengthen your credit profile. The longer you have your credit tradeline seasoned, the stronger the impact it makes on your credit profile. Borrowers with lower scores due to high credit card balances need to pay down the balances to get maximum optimization of their scores. Remember that low credit scores mean higher mortgage interest rates. For maximum, FICO scores, have credit card balances as low as possible but never a zero balance. For Example, a $1,000 limit card with a $900 balance will hurt scores. However, by paying down the card balance to lower than 10% or $100, scores will increase substantially. Available credit in a revolving account is what will maximize and boost credit scores.
How To Boost Your Credit With New Credit After Bankruptcy
The credit card that we are highly recommending is an unsecured card with a 95% approval rate. Almost all applicants, whether you have poor credit, recent bankruptcy, or low scores will get approved. The MyJewelersClub.com is a powerful credit rebuilding tool to boost your FICO in 30 days or less. This card is ideal for mortgage borrowers who have low scores either because they have no revolving tradelines and/or have cards with high balances. Due to their lower scores, they cannot qualify for a mortgage loan. Getting this card is another alternative to getting secured cards. The MyJewelryClub.com unsecured credit card can be quicker than getting secured cards to boost credit score. Borrowers can boost credit scores in 30 days or less with instant credit. You can contact MyJewelryClub.com by visiting their website or contacting them. We will discuss the particular details of this powerful revolving card. MyJewelryClub.com will issue a $5,000 unsecured revolving line of credit that report on all three credit bureaus: EXPERIAN, TRANSUNION, EQUIFAX. We will show you how to maximize and how to boost your credit scores without the waiting period it takes for secured cards. We will explain to you in getting started such as the cost of enrolling in the program, how it needs to be used, and when to apply as well as when it will report to all three major credit bureaus.
The Best Secured Credit Cards To Boost Your Credit With New Credit
Discover and Capital One are the best secured credit cards to boost your credit with new credit. Both Discover and Capital One unsecured credit cards will reward on-time paying credit cardholders in six to twelve months by increasing credit card limits without asking for additional deposits.
- Over 95% of applicants get approved
- Applicants can have bad credit, outstanding collections, prior late payments, outstanding charged-off accounts, repossessions, recent bankruptcy, recent foreclosures
- Getting the combination of Discover, Capital One, and two to three other secured cards will lead you to a fast-track road to rebuild and reestablish your overall credit profile and high credit scores
- There are credit builder installment loans such as www.self.inc and credit builder loans at banks and credit unions.
Credit builder installment loans with a revolving credit card like www.self.com is like adding fuel to the fire to get to the finish line to the road of great credit in a much faster time frame.
Recommended Tradelines
Most creditors want to see seasoned credit tradelines. Seasoned credit tradelines reflect the consumer’s past payment history. Most lenders will have a minimum amount of 3 to 5 credit tradelines that have been seasoned for at least 12 months. While lenders normally require credit tradelines seasoned for the past 12 months, other lenders require three tradelines that have been seasoned for at least 24 months. Tradelines are accounts such as revolving card accounts, auto loans, or any other creditor reporting any installment and/or revolving credit and its payment history of the debtor on the bureaus.
Boost Your Credit With Different Types of Credit Tradelines
The ideal amount of cards consumers should have is between three to five active revolving credit card accounts. To maximize and boost their score and for a strong financial profile, consumers should have a mixture of revolving accounts and installment accounts. Having one or two installment accounts such as an auto loan, mortgage loan, and/or student loans will be a plus along with revolving accounts.
Car Loans Impact Debt To Income Ratio For Mortgage
Do not get a car loan until you have closed on your home The average car payment is $400 per month which is equivalent to an $80,000 mortgage. Consumers should never ever close out any revolving accounts that are not used even though the revolving account company may charge an annual fee. Part of the scoring model of FICO is derived by having aged active tradelines and having available credit is also a major part of having higher scores. The $35 annual maintenance fee to keep the consumer’s revolving active account every penny. Good credit and higher credit scores mean savings, not just when applying for a mortgage. Good credit is also important when shopping for insurance because insurance premiums are based on credit scores. Interest rates on auto loans when consumers trade in their vehicle or just apply for any type of credit. Higher scores mean less risk for a creditor and/or lender which translates into less risk from a lender’s point of view. This means lower rates and lower rates mean big savings for the consumer. We highly recommend you read our REBUILDING YOUR CREDIT (Click Here)
