Homes By Pat Ford

Three Steps for Good Credit

road_to_good_CreditHave you been procrastinating about buying a home because of problems with your credit? Don’t  let fear stop you.   When you know what is on your credit,  you can do something about it.  Yes, it may take a while, but how long have you waited already? Here are some  steps for good credit  Get started , today and get control of your credit.

First, look at your credit report. It is mostly about your past credit. You can get all 3 of your credit reports free without affecting your credit score at AnnualCreditReport.com for free. Each credit reporting agency will ask you questions to verify your identity. When you get your reports, check each report very carefully for mistakes and duplicates. (Duplicates can make you look like you owe more money or have more negatives on your report.) Then, dispute any errors.  It will be made easy with multiple choice questions like not yours,, paid off, etc. It may take 30 to 90 days to get these off.  Be patient, it does work pretty well and requires no money.

Next, today’s credit. Make sure you are paying today’s bills on time.  Every time you pay your bill on time, give yourself a mental gold star. When getting a mortgage, everything that you pay can be considered. Rent history will always be checked. Sometimes, even regular payments such as a good history on utilities or insurance add a bit of good credit when getting a mortgage.

Third get some GOOD credit.  Here are three ideas. If you use these ideas, use them for at least six months, so that the new accounts get on your credit.

  1. Open a Store card use it for a purchase and pay off over 6 months.  I have done some research and as of 1/22/15, I found a “Fresh Start” credit program at Fingerhut.com that helps you establish credit on a six month program with a purchase from them in an amount over $50 and a $30 down payment.  Please share with my readers if you know of another starter program for credit.
  2. Get a secured credit card from your credit union or bank to establish credit. Use it carefully and make sure all payments are on time. (a secured card should not cost more than $150 a year.)
  3. Get a secured loan against a bank account. For example, put in $1000, borrow against that and make payments for at least 6 monthe. Since you borrow it right away, you might be able to deposit your rent money if you have it ahead of when it is due and borrow it back out in time to pay your rent. As you make your monthly payments on this loan, the money in the account becomes available. But stop! Another idea, instead of touching that money, you may leave it there and use it as a savings account for your new home.

Follow these three steps and get good credit.  For specific issues, I will be glad to help.   I have seen almost every kind of problem.   We promise, we will do my best to guide you.  Call me at 602-997-5132 or Javier at 623-271-1001 leave a public message here with initials or a nickname only.

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Get started today.  Get credit. Fix mistakes on your report.  Someday you may need good credit. And best of all you can create good credit and someday own a home.

Please share your questions.  We would love to help.  Perhaps your question and the answer will help others.

 

 

Posted on January 23, 2015 at 8:08 pm by Pat Ford

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