Is your Credit Score picture lookin’ kinda bleak??
Relax – if we work together for the next 6 months – we can get you in a much better position!
No matter what your credit picture – 6 months of work will general improve your scores by 100 to 150 points. Here are 4 things to do from the start:
- Stop using your credit cards. You might need to take PB&J sandwiches to work everyday – you might not get new shoes for Easter – but you’ve got to break the habit of spending credit, and work on a cash basis for all purchases. If you are an impulse spender, like me, there’s an easy trick. Take your credit cards and put them in a plastic container. Fill the container up with water. Put it in the FREEZER. Now – if you melt the ice in the microwave it’s going to mess up your little strip on the back… but if you NEED your credit cards for new tires (for instance) you can wait the two or three hours for them to thaw. If you WANT a new dress for a date – you will be more likely to call a girlfriend an BORROW something!
- Get a copy of your credit report. There are lots of FREE places to get it – the best bet is to go each of the three major bureaus. If you have questions about that, call us. Bottom line though – you won’t know what to work on if you don’t know what the report looks like.
- Get current on delinquent accounts. Again, if you’re behind – its difficult. Do you have something you could sell? Could you have a yard sale? Can you get an extra job? It’s going to take work to get caught up, but it’s going to feel so much better when you do! Your payment history makes up 35% of your credit score – so getting CURRENT is CRITICAL.
- Don’t apply for any more credit. Especially if you’re in “repair” mode – as you will likely get turned down. In fact, the SMART thing to do is to sign up for Opt Out Pre-Screen. This should improve your score by 15 to 30 points! (and it’s FREE!).
- Don’t CLOSE credit cards that are open! This is a critical point!
- OPEN A SECURED CREDIT CARD; okay so I know this seemes strange. I just said DON”T open credit, then I said DO open credit… it depends on your situation. If you have pretty rough credit, and not many open (read no) open credit cards – then go get 2 Secured Credit Cards. It will cost you $75 for each one, or maybe a little more, but it is worth it. This is the FASTEST thing you can do to help your scores!
Be patient… this didn’t happen overnight – and it’s not going to be fixed that fast. FHA loans really need 12 months of “clean” credit (paid on time) and a score over 620. We can do this! Now get going! There are things you can do NOW that will help!