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How To Go From 500 to 700 Credit Scores And Credit Qualify For Home Financing

How To Go From 500 to 700 Credit Scores And Credit Qualify For Home Financing
The description below is an outline of what the video covers.

1)How You Got Where You Are…
2) If You Have Recent Late’s (Within the last 12 months), You Are Not Quite Ready Yet.
3) No Late pays since 1 year…
4) You Are Ready To Start Dealing with Collections
5) Dealing with Charge-offs
6) Dealing with Judgments
7) Dealing with Disputes

So How did you get to where you are: Most people who currently have low credit scores had some kind of financial trauma Health challenge Divorce Job Lost / Layoff You are likely in one of the three modes described below:
A. You Are currently late on existing credit bills.
B. You are struggling having enough income to match the amount you are obligated to.
C. Or you have recently let bills go to collection and you are operating on cash.
D. Or You have stabilized your income & Outgo.
E. You may have even started saving some money.
F. You are tired of paying rent

How To Go From 500 to 700 Credit Scores | And Credit Qualify For Home Financing You are not going to be able to do much until you stabilize your income: If your income is not stable & Consistent you should not worry about clearing up your credit yet If you start working on credit only to have another series of late payments, it will only take longer to fix.

Once Stabilized – Get a secured credit card – Maybe two Use it sparingly, spending no more than $50 bucks each month. Pay the bill as soon as you receive it but do not pay the bill completely off, leave $5 – to $10 dollars each month. Here’s why, you get no points for a zero balance. See Secure Card video

What is a secure card: Some Banks – Not all, will give people who have poor credit a secured credit card. The credit card is secured by money you have deposited into a saving account at the bank or credit union. The reason they do this is because they can charge you a high interest rate without any risk. Only get a secure card that reports to all 3 credit bureaus.

What to do with collections: Depends on the age and the amount of the collection. if over two years or older, do nothing. If less than two years old, you should attempt to settle, or work out some payment plan. If you don’t have any money to settle or to work out a payment plan you wait.

What do you do with Charge-offs: Charge off is a status that means the lender is no longer trying to collect. A charge off does have a negative effect on your credit score. If you have the funds, and the inclination, and need points…, asking for a settlement, or a work out plan can have a positive effect on your credit score after the workout is paid.

What Do You Do With Judgments: Judgments are a nasty collection practice. Texas protects consumers from some creditors but this is a show stopper for a home loan. These must be satisfied, or paid, or resolved. These definitely affect your credit score. You must have proof the county has recorded the judgment as satisfied!

What Do You Do With Disputes? Disputes on a credit bureau is a way for a consumer to challenge what is recorded on their report. This is a useful way to challenge incorrect reporting or inaccurate information on your credit report. After disputing information, the credit reporting agency has 30 days to investigate. If they find that there is no substantiation of the disputed claim, the dispute language generally stays on the report Here’s the problem…while the dispute language is on the credit line, the scoring algorithm ignores the creditor reporting. This will come back and bite you when the underwriter requests for you to remove all disputes.

Here is what we covered: How You Got Where You Are One Of Two Paths If You Have Recent Lates, Not Quite Ready Yet No Late pays since 1 year… You Are Ready Dealing with Collections Dealing with Charge-offs Dealing with Judgments Dealing with Disputes To find out more about this subject contact Mike Durr The Kingwood Mortgage Guy at 281-348-9899 1521 Green Oak Pl. # 197 Kingwood, TX. 77339 http://Kingwoodmortgageguys.com