Need Higher Credit Score
I have a high debt income ratio and I need to raise my score, I have a 540 and I need to get back in the mid 600's what can I do to raise my score without having to pay alot of stuff off, which is mostly rental property?
Hey neighbor! I'm a mortgage broker and deal with low credit scores all the time and try to help people raise them as well. Unfortunately, I don't see any other way for someone to raise their credit score other than to continue to pay their bills on time, and/or to minimize their debt load. You can always try to find a straw buyer with a higher credit score to net you a deal with a lot of cash to pay off stuff, or refinance some property in their name. Actually, the first thing I would do is to take a look at your credit report and make sure it is accurate. If there is anything negative or incorrect, dispute it and more often than not, it will be removed thus increasing your score. That could take some time though.
simplelife,
I feel your pain, I am in the same boat. I don't know how these agencies come up with these scores. They look at credit cards and make sure you are not over 50% of your available credit. They don't care if you own a $200,000 home that only has a $98,000 mortgage on it.
There are a few ways to raise your scores.. I call them "advanced manipulation " ... first off you should have 5/6 major credit cards visa mastercards .. and avoid all others.. 2nd.. since u don't want to pay anything off.. and credit card balances hurt your scores the most.. apply for and rec a buisness credit card or two. and get all your balance off personal report.. biz cards normally do not report to your personal .. and all you may have to do is personally guarantee them.. big deal since u did that alread with everthing else..
3rd. dispute any thing thats late on all 3 reports.. do a few diputes at a time.. over a period of months. I don't care what any broker says . with scores that low.. you'll pay dearly for the credit.. so why not avoid this .. .. more to follow..
Here is what you have to do:
).
1) Get you credit report (CR)
2) Analize your CR and dispute as many things as you can
3) Let some time go by (2-3 months) and dispute more things..
4) Pay your bills (electric, telephone, water, sewer, etc..) ON TIME - in my town electric company reports everything that is not paid ON TIME (even one day late) to the credit agency - so, watch out!
5) If you have any active credit cards, make sure they are not maxed out. They should only be used 20% max (at the best. Some people say 50% is acceptable, but why risking lowering your credit score even more?)
So..... It will take many months of work and self discipline, and some day you'll be celebrating higher numbers on your credit score (I know I am!!!
Good luck!
A*
I advise my clients to open several savings accounts with credit unions
and then take out a secured loan against the savings account as collateral and repay within 4-6 months. You will pay interest but it will worth it because a credit investigation will show you with active bank loans which are considered hard to get. This should bump up your credit score.
By how many points will should the credit score go up after doing what you suggested?
Quote:
On 2004-10-14 15:47, kingston wrote:
I advise my clients to open several savings accounts with credit unions
and then take out a secured loan against the savings account as collateral and repay within 4-6 months. You will pay interest but it will worth it because a credit investigation will show you with active bank loans which are considered hard to get. This should bump up your credit score.
Hard to put a number on it because everyone's credit profile is different. When we help people improve their credit score we have a plan this is not the only tactic we use but on average we have improved client's scores anywhere between 25-47 points over the period of time I specified. We specifically use these tactics as brokers to get people qualified to be homeowners. If you have a relationship with a broker I suggest you talk with them because they should be able to show you specifically what you need to do according to the report from the bureau. As I said it is hard to determine because each situation is unique and quite frankly we can get people with downright ugly credit approved for 103% financing in as little as 30-45 days just depends on your case. Regardless how long it takes it certainly won't hurt you so if your credit is poor be proactive and monitor it routinely.
Good Luck