Thursday, May 26, 2011

Need to improve your credit score in 30-45 days to buy a home?? READ THIS....

How to increase your credit score by 10-100 points

To improve your score you have to know where you currently stand. You can get 1 free report a year to see what is reporting on your report. To know exact FICO scores you will have to pay. Here is exactly what you need to do.

- Do you have a Judgment? If so pay it off immediately! Go to the courthouse directly and ask for a receipt. After paying it off send a copy of the receipt to each credit bureau to show that it has been paid.

- Do you have a credit card? If so make sure that your balance remaining is only at 10% of your limit. No more than 30%. For example if you credit limit is $1000.00 you should only have a balance of $100.00. Anything over 30% drops your credit score. If you do not have a credit card than you should look into getting one. If you can’t qualify for a credit card look into getting a secured credit card. A secured credit card is where the bank issues you a line of credit equal to what you give them in a security deposit.

- Do you have any installment loans? This would be loans such as cars, personal loans, mortgages and/or student loans. These types of loans increase your score faster. Especially over time this shows you are consistent and responsible.

- Do you have old accounts that are still showing active? If so close those accounts! The more lines of credit you have open could hinder your scores.

- Do you have items reporting incorrectly? If so dispute those items through that credit bureau. This could help increase your score drastically! Find out the credit bureau that is reporting this wrong and go to there website. You can either dispute it on line or fill out their dispute form and fax it over to their office. They will ask for a brief explanation and if the item has been paid they may ask for proof so be prepared!

Doing these items can increase your score in the next 30-45 days! If you need help please feel free to contact me. I helped 4 home buyers last year increase their scores so that they can buy their dream home!!


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