Tips for Good Credit | Top 5 Tips
Tips for Good Credit | Top 5 Tips
Are you in need of tips for good credit to help you buy a house? Here are the top 5 Tips to help you get one step closer to a good credit score to get the best interest rate.
We will talk about:
- Credit bureaus
- Credit accounts
- Checking your credit report
- Credit card balances
- Lines of credit
- Closing an account
- Auto loans
- Credit repair
- How to raise your credit score
- Payment history
- FICO scores
- Paying your bills on time
- Student loans
- Timely payments
- Improving your credit score and identity theft
Common Buyer Mistake
A common mistake is that you do not talk to a lender until you are ready to make an offer on your dream home. This is definitely not the case, talking to a preferred lender before you start shopping will actually set you up for financial success. You want to heed their advice in regards to credit and debt to income ratios. After all they are the experts on the loan program and on the interest rate that you’re trying to achieve. Let’s talk about some tips on how to prepare for a home mortgage.
Here is the Full Length video to watch here:
Here are the top five things that you look for in regards to credit:
Tip #1 Credit Score.
You want to have at least a 580 credit score in order to be able to qualify for a loan.
Tip #2 Payment History
We need to be able to show proof of at least 12 months of you making on-time payments and not having any late payments in the last 12 months.
Tip #3 Liens and Judgments
Of course we don’t want to see any liens or judgments. We just don’t
want to see something we can’t overcome.
Tip #4 Bankruptcies, Short Sales, Foreclosures, Deed in Lieu
These are all things that do have a time period in which we have to wait to be able to overcome them.
Tip #5 Collection Accounts
We don’t want to have any collection accounts and the total of collection accounts cannot exceed two thousand dollars. This is not take into consideration medical collection accounts. Every loan program does have a different threshold.
- Credit length and amount of credit history — we want to be able to show proof of you having credit history for the last twelve months that you’ve made payments on time and you haven’t had any late payments.
- Ensure your bills are paid on time. Even if this means setting up automatic payments to make sure that you do not miss any payment dates.
- Ensure that you’re using 30% or less utilization on your credit card.
- Make sure you have three open lines of credit. A good mixture is going to be – two revolving credit lines which would be credit cards and then one installment loan such as an auto loan.
So if you know of any inaccuracies or discrepancies that you’re aware of, make sure to get your copy of the FREE CREDIT CLEAN UP GUIDE just for you.
Tools to Help in the Buying Process
CreditKarma.com – First and foremost make sure that you are monitoring your credit. There are many websites that are available for you to be able to monitor it. Credit Karma is probably the most popular but any of your bank credit cards they’re going to offer you free FICO credit scores that will be able to monitor it and at least alert you if you have a late payment or somebody’s trying to obtain credit on your behalf.
Annualcreditreport.com – Additionally you will want to make sure that you’re going on annualcreditreport.com to obtain a copy of your actual credit report that details and outlines all of the credit that you have.
You can also click here your free credit cleanup guide.
In Conclusion, there are so many ways that can help you clean up credit to maximize the potential for the best possible interest rate. That is the point here isnt it? To save you money! Speaking with a lender upfront and honestly about your financial situation will save you lots of money in the end!
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