How To Rebuild Your Credit And Increase Your Credit Scores
Thisi Article Is About How To Rebuild Your Credit And Increase Your Credit Scores To Qualify For A Mortgage At Low Rates
This guide was written for all of our borrowers at Gustan Cho Associates. The team at Gustan Cho Associates has helped countless clients in maximizing their credit scores and rebuild their credit. The easiest and fastest way to boost your credit scores and rebuild your credit is by getting three secured credit cards and one installment loan. We will guide you to the best credit card companies for consumers with low credit scores and prior bad credit.
If you follow our step-by-step instructions on this guide, you will maximize your credit scores. We have helped countless people get their credit scores over 700 FICO in just one year after their bankruptcy discharge. This is no rocket science. Everyone can have credit scores over 700 FICO if you follow our easy step-to-step guide. The key to getting qualified for a home mortgage is to have timely payments in the past 12 months, preferably 24 months. You can have prior bad credit and low credit scores but as long as you have been timely on all of your payments in the past 12 months, the chances are great that you will get an approve/eligible per automated underwriting system (AUS).
If you have higher credit scores but late payments in the past 12 months, the chances are you will not get an automated underwriting system approval.
How To Rebuild Your Credit And Increase Your Credit Scores With Secured Credit Cards
Secured credit cards are the same as unsecured cards. The only difference is the cardholder needs to place a deposit to the credit card provider. The credit card provider will issue a credit limit equivalent to the amount of the deposit. There is no interest earned on the deposit. The card provider will charge interest on the balance of your card. Most secured credit card companies will report to all three credit bureaus: Transunion, Experian, Equifax. Make sure when you apply for a secured credit card, they will report to all three credit bureaus.
Remember the main reason you are getting a secured card is to re-establish your credit and boost your credit scores. Each secured credit card can boost one’s credit scores by 20 to 50 points for consumers with lower credit scores. There are instances where consumers can get denied for secured credit cards. If this is the case, try other secured credit cards.
If you keep on getting denied for a secured credit card, then get a credit rebuilder installment loan account, which we will discuss later in this guide. After the credit rebuilder installment loan account reports your payment history for three months to all three credit bureaus, try applying again for secured credit cards.
The Best Recommended Secured Credit Cards For Bad Credit
Mortgage borrowers who want to rebuild and boost their credit scores with secured credit cards can get any secured credit card and/or revolving account they want. Make sure they report to all three credit bureaus. How many credit cards and credit limits should you get? The ideal amount of secured credit cards you should get is three to five.
Start out with three with at least a $500 credit limit. If you are limited on funds, then get three secured credit cards with lower credit limits.
Here are the top secured credit cards we recommend to our clients. To learn more about them and to apply, just click on the link of the credit card name:
Another revolving account you should get is a $5,000 unsecured jewelry credit card. This is a spectacular unsecured jewelry card that will help boost your credit with instant credit. Click on this link to learn more about this $5,000 unsecured jewelry credit card that reports to all three credit bureaus:
Fingerhut Credit Card is a department store unsecured credit card you should try to apply for. Fingerhut Credit Card reports to all three credit bureaus and is easy to get approved with a recent bankruptcy discharge.
Here is the link to Fingerhut Unsecured Credit Card:
Get An Installment Loan Through Self.Inc Credit Rebuilder Program
Get three to five secured credit cards and one installment loan. Do NOT get an auto installment loan until you purchase your home.
Auto loans have high monthly payments due to the shorter amortization schedule and can affect your debt to income ratio when it comes to qualifying for a home mortgage. Gustan Cho Associates highly recommends the credit rebuilder loan program with www.self.inc. How this works is you set up a 12 month CD through an FDIC BANK. It can be as low as $25 dollars per month. You make your monthly payments timely to www.self.inc. In return, they will report your monthly payment to all three credit bureaus. Your payment history shows up as an installment loan on all three of your credit reports. Once the 12th payment is made, you now have that total amount as cash.
Here is the link to www.self.inc:
Monitor Your Credit Utilization Ratio To Be Under 10%
To maximize your credit scores, make sure your credit utilization ratio is below 10%. A maxed-out credit card will plummet your credit scores. Credit scores fluctuate and you should not worry too much about your credit scores dropping due to having maxed out credit cards unless you are applying for a mortgage and/or new credit.
If you are planning on applying for a mortgage make sure to pay down your credit cards to at least a 10% credit utilization ratio. What this means is you should have a credit balance of no greater than 10% of the total available credit limit. The lower your credit utilization ratio, the higher your credit scores. The higher your credit scores, the lower your mortgage rates.
Other Credit Tips On How To Rebuild Your Credit And Increase Your Credit Scores
The chances are one of our loan officers from Gustan Cho Associates referred you to this credit guide. Do not hire any credit repair companies. Credit repair companies are not needed to repair your credit to qualify for a mortgage. Just follow our step by step instruction that is on this credit rebuilder guide and you can have credit scores of over 700 FICO. The team at GCA Mortgage Group does not charge anything. Our goal is to help you maximize and boost your credit scores so you can qualify for a mortgage. Credit repair companies can do more damage than good.
You cannot have credit disputes during the mortgage process. You cannot have any credit disputes during the mortgage process on derogatory credit tradelines and non-medical collection account disputes. All credit disputes need to be retracted for the mortgage process to proceed. If you retract a credit dispute, the chances are your credit scores will drop. If you have any questions about reestablishing and maximizing your credit scores to qualify for a mortgage, please 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.