Tips On Improving Credit Scores To Qualify For A Mortgage

This Article Is About Improving Credit Scores To Qualify For A Mortgage

For those folks who went through a financial meltdown, their credit scores also dropped. There is a fast track way of Improving Credit Scores To Qualify For A Mortgage:

  • A financial crisis can happen to any hardworking individual during the course of their lives
  • A person who has had great credit can ruin their credit literally overnight if they lost their jobs, or they needed to shut their business down
  • One late payment can drop a person’s credit score by 50 points or more 
  • Bankruptcy and foreclosure can drop a person’s credit score by more than 150 points
  • Repairing credit and Improving Credit Scores To Qualify For A Mortgage go hand in hand
  • But Improving Credit Scores To Qualify For A Mortgage is much more important than deleting old negative credit account via disputing with credit reporting agencies

Improving Credit Scores To Qualify For A Mortgage After Bankruptcy And Foreclosure

How to fix a loan to improve your credit results

Many people have given up on improving their credit scores or even trying to improve their credit after filing bankruptcy, going through a foreclosure, or having a judgment.

  • They just figure that they can no longer get credit and purchase everything with cash and that improving your credit scores is nothing but a waste of time
  • Homebuyers can start Improving Credit Scores To Qualify For A Mortgage from the date of bankruptcy discharged date and from when the foreclosure/short sale has been finalized

The team at Gustan Cho Associates has helped countless clients get credit scores to over 700 FICO in less than one year after bankruptcy discharged date.

Credit Repair For Improving Credit Scores

Other folks who have had a prior bankruptcy or bad credit spend thousands of dollars in credit repair.  They hire expensive credit repair companies to delete negative items from their credit report.

  • Some credit repair companies charge more than $100 for every negative item they remove
  • Some folks who have filed bankruptcy years ago spend thousands of dollars on credit repair companies trying to delete aged negative credit accounts that have been included in their bankruptcy petition

Credit repair is not necessary to qualify for a mortgage.

Does Credit Repair Work On Improving Credit Scores To Qualify For A Mortgage

Are secured credit cards the best way to increase your credit results

Paying a credit repair company $100 dollars or more to remove a negative old account is a total waste of your hard-earned money.

  • Credit repair companies should tell you that
  • Negative accounts that are 2 years or older have little or no impact on your credit score
  • Lenders go by a person’s credit score in determining whether to grant them a loan
  • Granted, if you are late with monthly debt payment, it will definitely drop your credit scores and that late payment will be on your credit report for 7 years
  • However, your credit scores will go back up as time goes by
  • Two years from the late payment, that late payment will no longer have an impact on your credit scores anymore
  • It might not look good on your credit report but the thing that counts is your overall credit score

Credit repair may do more damage than good when it comes to qualifying for a mortgage.

Secured Credit Cards Is Best Way Of Increasing Credit Scores

Improving credit scores is done by establishing new credit as soon as possible.

  • Get three secured credit cards
  • Get an installment loan
  • Be an authorized user on a family member’s credit card

We will be discussing improving your credit scores by establishing new credit on future blogs.

Related> How Can I Improve Low Credit Scores

Leave a comment