Question by ¸.•*´`*? ?Lenka? ?*´`*•.¸: How to raise credit score in 8 months in order to buy home? Fast Credit Repair Answer by Bailey D Add your own answer in the comments!
I filed for bankruptcy in 2007, my current credit score is 640. How can I raise my credit score before purchasing a home?
Best answer:
f-r-e-e that spells free, credit report dot com baby.
Question by ¸.•*´`*? ?Lenka? ?*´`*•.¸: How to raise credit score in 8 months in order to buy home? Fast Credit Repair Answer by Biggie @ Arbor Mortgage Add your own answer in the comments!
I filed for bankruptcy in 2007, my current credit score is 640. How can I raise my credit score before purchasing a home?
Best answer:
You will have to be out of the BK for two years & plan on putting money down on the home.
Raise Credit Score by 100 Points As consumers continue to extend themselves by using more and more credit, their ability to repay their debts and loans is becoming harder and harder. As a result, the median credit score is taking a plunge and lenders are faced with turning away more business. Those who are seeking to get approved for a loan are left facing the facts of their repayment history and money management skills. Before applying for the loan you need, there are a few steps every consumer should take before allowing lenders to take a look at your financial resume. The first thing you want to do is order a copy of your free annual credit report to review it for errors. Studies show that 75% of credit reports contain erroneous information, and 1 in 4 actually impact consumers in a negative way. You deserve fair representation, and the credit bureaus are required by the Fair Credit Act to review and respond to any disputes on your credit report within 30 days. Once you have accessed your free annual credit report, it is time to work on your raise credit score strategy. This is a two part process: dispute credit report errors and find inefficiencies in your credit behavior. Here’s what to do with your report: Now that you know why your credit score is what it is, it’s time to take actionable raise credit score steps that will have the greatest impact in the shortest amount of time. Start with taking a look at your available credit to debt ratio and make sure it is below 30%. This is the fastest way to make an improvement in your credit rating, and can be done just by picking up the phone and requesting a credit limit increase (of course there are some tricks on how to make that happen every time). Continue to find other credit behavior issues that you can change to immediately increase your credit score. From there you want to start the dispute process. Since this can take up to 30 days, you want to get started on this early. If you need to raise your credit score quickly, your best bet is to pick 2 or 3 items that are hurting your reputation as a borrower the most. This will get the reporting agency to work fast for you. Plus, if you submit everything at once, the reporting agency is less likely to take you seriously. Find out how your credit score compares to the national and get your quick credit fix. Download your credit score and reports for free at http://www.thecreditfix.info
1. Take out a pen and a highlighter
2. Circle any errors that are on your report including and make a notation as to why the item is incorrect: accounts that you have open but are marked closed, late payments that didn’t occur, the wrong Social Security number.
3. Now take a look at your credit report and highlight any “problem areas” that are legitimate claims and may be hurting your credit score.
How To Raise Credit Scores Using Rapid Rescore Raise credit scores 50 points in 5 days! Sounds great right? Maybe…
Kathleen Rieger is a Certified Identity Theft Risk Management Specialist.
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A mortgage company or bank can offer a service called ‘rapid rescore’ to get something corrected off your credit report. Here is a brief walk through of this method to raise credit scores. The rapid rescore strategy requires proper paperwork. The proof must come from the creditor directly.
Some examples of corrections are:
a letter stating the account is not your account
a letter stating the account was paid satisfactorily
a release of lien
a satisfaction of judgment
a bankruptcy discharge
a letter for deletion of collection account or any relevant evidence
a letter correcting (and raising) available credit balance
a letter changing the status of an account from ‘delinquent’ to ‘current’
a letter to update high credit limit
Checklist
1. The creditor’s letter must be signed and on their stationary.
2. It must include the creditor’s contact name, phone number, your name and address, and a full or partial account number that matches the credit bureau entry number.
3. The letter must state what action the lender is doing to correct in the credit file — like change the status of an account from ‘delinquent’ to ‘current.’
4. Next the lender forwards the letter to the credit bureau, does a telephone verification and a new credit report is issued with an updated credit score.
The rapid rescore system works best if you are trying to raise credit scores fast to move up from one credit rating to another. Some mortgage companies offer a ‘what if’ scenario for rapid rescoring. Simply put, the account that is to be updated is entered into the ‘what if’ scenario and the program calculates a new credit score.
For example, your mortgage lender runs your credit report and your scores are 660, 680, and 710. Using a rapid rescore program, the results tell you what you can you do to increase your score 10 to 50 points. The system may recommend that you pay off some credit cards, pay off a collection, or other options. The main idea is to get you to the next level so the bank can offer better rates and options for your loan. This tool provides an educated guess on how to raise credit scores so it is not a guarantee of how the rescore will ultimately impact the credit score.
Your lender may simply evaluate how the proposed correction would impact the major score factors that are listed on your credit report. If that correction affects a major score factor, then its likely it would increase your credit score and worth pursuing.
Rapid rescore is not cheap. Typically it costs a lender to to run it against each credit bureau. The lender may choose to eat the cost or they may charge it back to the borrower. It is expensive but in most cases it works well for people looking to raise credit scores fast so they can pay 5% down payment instead of 10%, or avoid a high interest rate, or eliminate PMI or other costs related to mortgages.
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Raise Credit Score ? 2 Strategies to Avoid It is entirely possible for people to use raise credit score techniques without the help of a hired professional. With just a little organization and time, you can get your credit repaired just in time to get approved for a loan. Unfortunately, those who prefer the do-it-yourself method often end of making matters worse by doing things that actually affect them in a negative way. Don’t fall victim to raise credit score methods that hurt you by implementing some of these myths. Myth #1: Closing Credit Card Accounts can Raise Credit Score These are just two of many credit score myths that exist. Repairing your own credit is entirely possible, but only if you know what you are really doing. Don’t fall victim to practicing techniques that can actually make things worse. Find out how your credit score compares to the national and get your quick credit fix. Download your credit score and reports for free at http://www.thecreditfix.info Free report at: www.CSBCards.com – (*24hr Recorded Message (775) 473-9014*) CREDIT REPAIR: info from the credit secrets bible Rebuild Credit: Insider Credit Repair Techniques to Improve Credit Score Fast! What’s the fastest way to raise your credit score? To quote the classic magazine salesman from the movie Office Space “That all depends”… While the removal of negative items from your credit report will almost always result in an increase in your credit score, there is a method that works better. Here’s why. Adding positive accounts is actually more effective at improving your credit score (in the short term) than removing negative one. Unfortunately, few consumers or credit repair companies know this. One of the biggest problems with trying to get approved for new credit is that you need to “have” credit in order to be approved. This causes a sort of catch 22. How does one “get” credit if no one will give them credit because they don’t have any credit to begin with? A vicious cycle indeed, but a real one. However, if you have someone you can use a cosigner this is NOT a problem. Simply have them cosign on the new credit application for you. If you don’t have a cosigner, read on. Contrary to popular belief (or what myfico and credit repair companies would like you to believe), the largest factor in building a solid foundation for your credit score comes down to two credit scoring factors: 1.) The “High Credit Limit” and 2.) Your “Debt to Credit” Ratio Your high credit …
This is generally not the case for two reasons. Lenders like to see a long credit history on your report. The less history you have, the lower your credit score will be. Secondly, closing accounts can limit your available credit to debt ratio. If you are closer to maxing out your credit cards, that does not bode well with lenders. They like to see that you have lots of available credit because that is an indication that you know how you manage your money and pay back your loans on time.
Myth #2: Piggybacking Works
Piggybacking used to be an effective method to almost instantly increase your credit worthiness. This was the process of having someone with good credit add you to their accounts as an authorized user of the account. In doing so, their credit history would end up on your personal credit report. As a result you would have a glowing report. Unfortunately, people starting abusing this loophole by selling their information to people with poor credit scores, which corrupted the integrity of the entire FICO scoring system.
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