Whats Better For Credit Repair
wihich is better for credit repair ? secured credit card or a secured bank loan ( not sure the name is correct ) ?
Do most banks have these types of loans ?
I asked my credit union and they said they did not ?
Banks will do more than credit unions.
As far as your question goes, either one will be just about as effective in repairing your credit.
I agree with the previous poster. A bank will look to give you more money after awhile, so that could be helpful in RE investing.
Regards,
David
[ Edited by joel on Date 05/04/2005 ]
Either type of loan will help you rebuild your credit. What are you trying to repair? Late payments over the last 12-24 months, rebuild after bk? That will be helpful to know. I have worked in finance for 10 yrs so I can prob give you some good tips. If you take out a secured credit card then use it but use it wisely. If you have $1000 credit limit do not charge less than $100 on it but no more than $500 (50% usage). Do not pay it off every month. You need to show a consistent and timely payment pattern. Do not apply for a lot of credit at one time. Credit repair is a time management game and it does not happen quickly. One year is usually the minimum look back.
Hope this helps.
Yes 75 percent. So what I do is buy rentals that at least rent for 133 percent of what my mortgage is. that way they cancel each other out
I would kill to find a rental that covered 133% of the mortgage. Where do you find goldmines like that?
You do lose some points on any revolving credit account that has higher than 50% of the available credit used. You get breaks on your credit report at below 50, below 30 and around 1% of the balance.
As far as options, if you are in a nice appreciating area, you might convert these or more preferably, refinance if the terms are right, then later on, you can reestablish a line of credit. Just my .02
GL
[addsig]
Thanks again - Ray.
Been reading over all the previous post - some post seem to contradict each other.
Not being an expert. However, I know I must maintain 720 to get the best financing. Never had a problem with keeping my score high - I always figured as long as you paid your bills ontime you were good to go.
Last week I pulled all 3 of my reports.
TU & Experian count my HELOCS like they are credit cards. Since my HELOC is new and maxed out my score has dropped about 80 points (no late pays, just new mortgage & HELOC)
I have tried to change this to no avail.
Experian counts my HELOC as a regular loan and my score is about 40 points higher than TU.
My recommendation is refi and increase the line (if you have the equity to get your ratios down) or to get a HELOAN which would switch it to a installment loan (rate will probably be higher, but could save you overall if you get better rates on future mortgages, etc)
How successful have you been at that? If say your credit score is 670 b/c of a new line of credit will some lenders just ignore it and give you the 720 rates?
Your score is your score, when I say count it as mortgage I mean for your debt/income ratio. They want to see the housing debt to income ratio and yuor total debt to income ratio. And no way would a credit line drop you 50 points.
[addsig]
has anyone got a no doc cash out refinance? or is that even possible?
When I got my HELOC I just got 3 other credit cards with good limits to counterbalance the effect. Meaning if I used a lot of it I still have enough credit available to not hurt my utilizations.
When I got my HELOC I just got 3 other credit cards with good limits to counterbalance the effect. Meaning if I used a lot of it I still have enough credit available to not hurt my utilizations.
www.myfico.com might be a helpful tool for everyone. also i read 10% of your fico is based on debt to credit ratio- how much debt u have to how much credit availible.
I personally have seen someone get stuck with a lower limit on a credit card because he had so much credit availible to him, even though it was unused. deemed to be a risk even though he had a 768!
If you plan on closing cards, pick ones with late payment history, or newer ones, because they will wipe out the history on ur credit bereua as established credit history.