Increasing Credit Scores To Qualify For Illinois Mortgage With Bad Credit

This BLOG On Increasing Credit Scores To Qualify For Illinois Mortgage With Bad Credit Was UPDATED On June 20, 2017

There are several simple tips that everyone should be aware of in maintaining the best possible credit score.

  • Consumers with zero balance credit cards, always have a balance of at least $10 dollars for maximum credit score.
  • Having a minor balance like $10 dollars will increase scores.
  • Do not max out credit cards. 
  • Maxed out credit cards will plummet credit scores.
  • It is always good to have large available credit on credit cards. 
  • Try to keep balances below the 10% level. 
  • Lower credit balances are best for credit scores. 
  • However, zero balances will hurt scores. 
  • Following these tips will help qualify for an Illinois Mortgage With Bad Credit.

Add Secured Credit Cards to Boost your Credit Scores

Always try to have 3 credit cards with available credit balances:

  • Borrowers with one credit card should get two more credit cards. 
  • Consumers with bad credit and are unsure that they qualify for unsecured cards, then get two secured credit cards with at least a $500 credit limit. 
  • With new credit cards, always keep  credit balances low but yet avoid having a zero balance. 
  • Keep a $10 dollar credit balance on your credit card every month.

Re-Establishing Credit To To Qualify For Illinois Mortgage With Bad Credit

Do not apply for credit all at once.

  • As an example, applying for ten credit cards all at once will not just drop credit scores due to multiple credit inquiries but will alert creditors of potential fraud and show signs of desperation for credit. 
  • When applying for credit cards, the credit card company runs a hard pull credit report which is a negative. 
  • It is okay to apply for a credit card from time to time but not too often because a hard pull credit report will lower scores and lenders tend not to view it favorably. 
  • Lenders and other creditors do not view credit inquiries favorably.

Pay Bills On Time

Always pay your bills on time.

  • One 30 day late payment on installment, revolving, mortgage or automobile loan can drop scores by at least 50 points or more. 
  • Being late on one mortgage or automobile loan payment, borrowers may need to wait have one year of continued timely payments to qualify for a mortgage home loan. 
  • Lenders normally want to see 12 months timely payments.
  • Most Illinois mortgage with bad credit lenders want to see at least 12 consecutive months of timely payment history on all of monthly debt obligations in order to approve a borrower a Illinois mortgage with bad credit.

Monitor Credit With Annual Free Credit Report

Remember that every consumer is allowed one free credit report from each of the three major credit bureaus once a year. Consumers can get a copy of their free annual credit report once a year.

  • Take advantage of the annual free credit report and monitor it like you are monitoring checking and savings account. 
  • Check for errors and accuracy on all credit tradelines.
  • Remember that low credit scores cost money not just in higher mortgage interest rates but other expenses such as higher insurance premiums and higher rates on all credit.
  • Lower credit scores means higher interest rates on mortgages and auto loans, higher interest rates on credit cards, and higher insurance premiums on auto and health insurance. 
  • Also keep in mind that credit reporting agencies have a track record of making mistakes in reporting credit and consumers can have errors in your credit report that could be affecting their credit scores.
The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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