Why Opening New Credit Cards Raise Scores

Why Opening New Credit Cards Raise Scores And Help For Mortgage

Gustan Cho Associates are mortgage brokers licensed in 48 states
This ARTICLE On Why Opening New Credit Cards Raise Scores And Help For Mortgage Was PUBLISHED On March 19th, 2020
Why Opening New Credit Cards Raise Scores And Help Borrowers Qualify For A Home Loan:
After the coronavirus pandemic is under control and the economy has stabilized, the home purchase market is expected to be strong.
  • The global coronavirus pandemic has impacted the stock market, real estate and mortgage industries, and the economy
  • However, Americans still need shelter. In many instances, buying a home is cheaper than renting
  • Mortgage rates are at record all-time lows
  • You do not need a 20% down payment to qualify for a mortgage. USDA and VA loans do not require any down payment requirements and offer 100% financing
  • FHA loans only require a 3.5% down payment on a home purchase
  • Conventional loans require a 3% to 5% down payment
  • Non-QM loans require 10% to 20% down payment
  • One of the most important factors when qualifying for a mortgage is the borrower’s credit scores
  • Credit scores determine the amount of down payment a homebuyer needs to put down
  • Credit scores determine the mortgage rates
  • Higher credit score borrowers are less riskier borrowers under the lender’s eyes
  • Borrowers can easily get 700 plus credit scores after a bankruptcy as soon as six months after their bankruptcy discharge
In this article, we will discuss and cover Why Opening New Credit Cards Raise Scores And Help For Mortgage.

Why Opening New Credit Cards Raise Scores And Is Fastest Way Of Rebuilding Credit

Homebuyers can qualify for a mortgage after bankruptcy.

  • However, they need to meet the minimum credit score requirements
  • Consumers should start rebuilding credit after a bankruptcy as soon as possible after their discharge
  • Getting secured credit cards is the easiest and fastest way of rebuilding credit after bankruptcy. Many often give up on getting credit after bankruptcy
  • They often feel there is no way in rebuilding credit after bankruptcy on their credit reports
  • Many often feel credit cards got them into trouble in the first place and cash is the best policy
  • Not rebuilding credit and getting new credit will often hurt consumers
  • The reason why not having credit hurts consumers is because it suppresses your credit score
  • The ideal amount of secured credit cards to get after bankruptcy is three
  • The minimum credit limit to get is $500 limit on each card
  • Secured credit cards are just like traditional unsecured credit cards except you need to place a deposit to the credit card company
  • The amount of deposit you put down is the credit limit the company gives you
  • With timely payments on your new secured credit cards, many companies will often increase your credit limit without asking for an additional deposit

See http://www.720creditscore.com/help/credit-cards/ for secured and/or unsecured credit card recommendations for bad credit, good credit, or excellent credit.

Importance Why Opening New Credit Cards Raise Scores And Reestablish Credit

What is the importance of opening new credit cards Raising results and restoring credit

Importance Of Establishing New Credit Tradelines When Qualifying For A Mortgage

Lenders will look at the past payment history of a borrower. Credit bureaus will derive to a consumer credit score by analyzing the type of credit, the payment pattern, utilization ratio, the longevity of the tradeline, and the ratio of timely versus late payments. The lower the credit utilization ratio, the higher the scores. The more diversified the consumer is with the types of credit they have, the higher the credit score. The longer the credit tradeline, the higher the credit score. The best way to have the highest credit score possible after bankruptcy is to get three major revolving credit cards.

Gustan Cho Associates Mortgage Group are experts in helping borrowers with maximizing their credit scores so they can qualify for a mortgage. Gustan Cho Associates is a five-star national mortgage company licensed in multiple states. We are the to-go lender for homebuyers who had a prior bankruptcy, foreclosure, deed in lieu of foreclosure, short sale and/or other derogatory credit. Please contact us at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com.

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