Fastest And Easiest Way To Increase Credit Scores To Get Best Rates
This ARTICLE Is About The Fastest And Easiest Way To Increase Credit Scores To Get Best Rates
We get countless calls from our viewers at Gustan Cho Associates asking about the Fastest And Easiest Way To Increase Credit Scores. Credit scores fluctuate depending on the activity on consumer credit reports. The team at GCA Mortgage Group has helped tens of thousands of borrowers increase their credit scores and strengthen their credit profiles.
You do not need a credit repair company to seek the Fastest And Easiest Way To Increase Credit Scores. Actually, credit repair companies are often a waste of money. Whatever a credit repair company can do, you can do it yourself without spending tons of time. Older derogatory credit tradelines that are two years or older have little to no impact on your credit scores. Mortgage lenders will not hit you for a loan level pricing adjustment on prior bad credit.
Prior bankruptcy, foreclosure, deed in lieu of foreclosure, a short sale has no impact on your mortgage rates. Prior bankruptcy, foreclosure, deed in lieu of foreclosure, a short sale has no impact on credit scores if the bankruptcy and/or housing event has been seasoned for over 18 months.
The team at Gustan Cho Associates are experts in helping consumers maximize their credit scores in a very short period of time. GCA Mortgage Group can teach consumers in getting a credit score over 700 FICO in just a year after bankruptcy. In this article, we will discuss and cover the Fastest And Easiest Way To Increase Credit Scores To Get the Best Rates.
Steps Leading To The Fastest And Easiest Way To Increase Credit Scores
In this article, we will discuss and explain to our viewers at Gustan Cho Associates how to boost your credit scores and reestablish your credit. Higher credit scores mean you can qualify for any mortgage program you want. Higher credit scores mean lower mortgage rates. Higher credit scores mean lower insurance premiums.
The first step in the road to the fastest and easiest way to increase credit scores is by taking the following steps:
- Get a copy of your credit report from Experian, Equifax, Transunion
- Identify all of your negative credit items on your credit report as well as errors
- Dispute all of the negative credit tradelines on your credit report that are valid and you have proof
- Make sure you have proper documentation and facts to provide the credit bureaus
- Pay down all of your credit card balances to a 10% credit utilization ratio
- Contact the creditors that are reporting errors and/or negative tradelines on your credit report
- If the errors are incorrect, ask the creditors to remove the errors of your credit report
- If the outstanding collections and/or charged-off accounts are valid, see if they will take pay for delete
- Pay for delete is agreeing for a certain amount of money to settle the date but in return, the creditor will delete the negative item off your credit report
Fastest And Easiest Way To Increase Credit Scores: The Power Of Secured Credit Cards
Secured credit cards are the fastest and easiest way to increase credit scores and rebuilt your credit after periods of bad credit, bankruptcy, or foreclosure. Getting secured credit cards work exactly like unsecured credit cards. The only difference is the consumer needs to make a deposit for the amount of credit card limit.
The credit card provider will then issue a credit limit to the credit card holder for the amount of the deposit. As the secured card ages and the consumer is timely on their payments, the secured credit card company will increase the credit card limit without asking for an additional deposit. Once the secured credit cardholder has their cards seasoned for more than a year, they can qualify for unsecured credit cards. For example, if a consumer wants a $1,000 secured credit card limit, they need to put a $1,000 deposit with the credit card provider.
Secured Versus Unsecured Credit Cards
Secured credit card companies will report the cardholder payment history to the three credit reporting agencies. Late payments will be reported as well. It is very important for the secured credit cardholder to make timely minimum payments. After six to twelve months, the secured credit card company will review the credit cardholder’s payment history and patterns.
If the credit card company feels the cardholder is financially responsible, they will increase the card limit on the secured credit cardholder without asking for an additional deposit. The ideal number of secured credit cards to get after bankruptcy, foreclosure, deed in lieu of bankruptcy, a short sale is three to five secured credit cards with at least $500 credit limits. Each secured credit card can boost a consumer credit score by 20 to 50 points after bankruptcy, foreclosure, deed in lieu of foreclosure, short sale. As the secured credit card ages, the borrower’s credit profile will become stronger and their credit scores will increase.
Reestablishing Credit Profile After Bankruptcy
Bankruptcy is a great tool to use for consumers who are drowning in debt. Other reasons for filing bankruptcy are due to divorce, failed business venture, being a victim of a crime and/or fraud, an extended period of unemployment, medical reasons, and other personal issues. Bankruptcy allows consumers to get a fresh financial start. Most debts can be discharged in bankruptcy.
How would you like to have a fresh financial start in life without any debts? Homebuyers can qualify for a mortgage after bankruptcy. However, bankruptcy will plummet consumer credit scores by 100 to 200 points. No need to worry. The team at Gustan Cho Associates can help people who filed for bankruptcy get their credit scores over 700 in less than a year and prepare them to qualify for a home mortgage. The first thing you need to do after bankruptcy discharge is to get three to five secured credit cards.
Besides three to five secured credit cards, we recommend consumers to get an installment credit rebuilder account through www.self.inc. Do not hire a credit repair company. You do not need a credit repair company to reestablish your credit. Do not worry about deleting old derogatory credit tradelines. Any derogatory credit tradelines including bankruptcy and/or foreclosure, that is two years old or older will not have any impact on your credit scores.
Check For Errors On Credit Reports That Can Affect Your Credit Scores
Credit bureaus do make mistakes. Always monitor and review for errors on your credit reports. There are many instances where you get secured credit cards to improve and reestablish your credit scores. The secured credit card company will be reporting to the three credit bureaus: Experian, Equifax, Transunion. However, Equifax may be reporting the positive credit tradeline and Experian and Transunion may not be reporting it. This is not good for you. The purpose of having secured credit cards is so they report to all three credit bureaus. First, you need to let the credit card company know about this error. Then wait for the results of their investigation. If after 30 days there is no result, file a credit dispute to both the credit bureaus and the creditor at the same time to correct the error of not reporting your payment history.
Here is the contact information for the three credit reporting agencies:
- TransUnion LLC Consumer Dispute Center
- P.O. Box 2000 Chester, PA 19016
- Tips for filing a Transunion dispute Online: https://dispute.transunion.com
- Phone: 800-916-8800 – 8 am-11 pm EST
- Experian: (714) 830-7000 – 9am-5pm EST
- P.O. Box 4500 Allen, TX 75013
- Tips for filing an Experian dispute Online: https://www.experian.com/consumer/upload/
- Toll-free (800) 846-5279 – 8 am-5 pm EST
- Equifax Information Services LLC P.O. Box 740256 Atlanta, GA 3037
- Tips for disputing your Equifax credit report Online: https://www.equifax.com/personal/disputes
Consumer credit scores are calculated using an algorithm created by FICO
How Creditors And Lenders Grade Credit Scores
Nobody has a crystal ball. A person can have had the best credit payment history in the past 20 years and have the highest credit scores but can lose their job and their credit scores can tank.
- However, lenders use the past payment history and the borrower’s credit scores as a tool to price out mortgage rates
- The higher the credit scores
- the fewer risk lenders will assume they have
- The lower the risk, the lower the credit score.
Here is how creditors and lenders grade borrowers credit scores:
- Any borrowers with credit scores higher than 720 FICO is considered to have excellent credit
- A borrower with credit scores between 680 and 719 is considered to have an above-average credit score
- A borrower with credit scores between 640 to 679 FICO is to have a good credit score
- A borrower with credit scores between 620 to 639 FICO is to have a fair credit score
- A poor credit score is anything lower than 620 FICO
Homebuyers with credit scores as low as 500 FICO can qualify for an FHA loan at Gustan Cho Associates. The VA does not have a minimum credit score requirement with an approve/eligible per automated underwriting system approval (AUS). Gustan Cho Associates is a five-star national company licensed in multiple states with no lender overlays on government and conventional loans. If you need to qualify for a home mortgage with a lender with no lender overlays on government and conventional loans can contact us at Gustan Cho Associates at 262-716-8151 or text us for a faster response. Or email us at [email protected] The team at GCA Mortgage Group is available 7 days a week, evenings, weekends, and holidays.