Credit Scores
KNOW YOUR SCORES:
A FIRST TIME HOMEOWNERS LOAN OR FHA LOAN HAS A MINIMUM SCORE OF 640 AT THIS TIME. HOW CLOSE ARE YOU?
THERE ARE 3 CREDIT BUREAUS. EXPERIAN, EQUIFAX AND TRANSUNION. ALL THREE SCORES MATTER! ALL THREE REPORTS SHOULD HAVE THE SAME INFORMATION. ERRORS CAN BE ON ONE REPORT AND NOT ON ANOTHER. IT IS IMPORTANT FOR YOU TO PULL YOUR CREDIT REPORTS YEARLY AND MAKE SURE THEY MATCH UP. IF NOT, YOU NEED TO CONTACT THE BUREAU AND MAKE THE CORRECTIONS. GOOGLE FREE CREDIT REPORTS AND USE ONE OF THESE ONLINE SITES, SUCH AS WWW.FREECREDITTREPORT.COM, TO PULL UP YOUR CREDIT REPORTS. THE REPORTS ARE FREE. THE SCORES ARE NOT. THE PRICE FOR YOUR SCORES IS USUALLY UNDER $20 AND IS A GOOD INVESTMENT.
KNOW WHAT YOU CAN AFFORD:
YOUR MONTHLY HOUSE PAYMENT SHOULD NOT BE MORE THAN ONE PAYCHECK OUT OF FOUR PAYCHECKS IN A MONTH.
A FEW TIPS TO RAISE YOUR SCORES:
HAVE A CHECKING ACCOUNT.
OPEN A SAVINGS ACCOUNT AND KEEP IT OPEN. MAKE WEEKLY DEPOSITS YOU CAN AFFORD NOT TO TOUCH AND KEEP IT THERE.
OPEN A SECURED LINE OF CREDIT. THIS IS WHERE YOU GO INTO A BANK AND USE YOUR CASH TO OPEN A CREDIT CARD LINE. IF YOU GO IN WITH $200, YOUR CREDIT CARD WILL HAVE A $200 MAXIMUM LINE YOU CAN CHARGE. YOU PAY OFF THE AMOUNT YOU CHARGE AND YOU CAN ALSO INCREASE YOUR LIMIT WITH MORE CASH AS YOU WISH. PAY ON TIME AND INCREASE YOUR CREDIT SCORE. YOU CAN ALSO GOOGLE SUZIE ORMAN AND LOOK INTO HER SECURED DEBIT CARD THAT REPORTS TO THE CREDIT BUREAUS. EITHER WAY, MAKE SURE TO LOOK INTO THE FEES ASSOCIATED WITH ANY CARD.
TAKE CARE OF OUTSTANDING BALANCES SHOWN ON YOUR CREDIT REPORTS. DO NOT WAIT UNTIL YOU HAVE THE FULL AMOUNT DUE. CALL AND MAKE ARRANGEMENTS TO PAY A MONTHLY AMOUNT THAT YOU CAN AFFORD. ONCE THIS AMOUNT IS SET, DO NOT MISS A PAYMENT. IT IS VITAL YOU SET AN AMOUNT YOU CAN AFFORD TO CONTINUE TO PAY UNTIL THE AMOUNT DUE IS PAID IN FULL.
STUDENT LOANS MUST BE PAID AND TAKEN CARE OF. IF YOU ARE IN DEFAULT ON A STUDENT LOAN YOU WILL NOT QUALIFY TO PURCHASE A HOME.
PAY ALL BILLS ONETIME, INCLUDING ELECTRIC, GAS AND WATER BILLS!
