Fixing That Credit Score CAN Be Done, But Be Smart About It!

Lenders have decided to shape up their credit criteria, how healthy is your credit score? A lot of people are feeling the pinch with lenders tightening their belts and restricting their loan approvals more and more each day.

Mortgage lenders are forced to be more restrictive these days, and some people are facing the need to help boost their credit score in order to make getting that loan approval possible!

I'm working with several clients that are in this boat, and rather than simply telling them to "see me when they qualify", I have helped them to establish a relationship with lenders or credit counselors that can help them repair or improve their credit scores and help pave the way to home ownership. Many times I find that it is first-time home buyers that have the most difficulty getting their credit score high enough to make their payments affordable.

In some cases, it can be as simple as opening a couple of credit cards and carrying a low balance so that there is more positive history on their report. In other cases, the work can be a bit more intensive. Here's a few tips to help get your score in better shape!

• I have seen people push their scores up over 150 points in under a year. It's not easy, but it can be done. Make sure that all of the items on your report are accurate! Dispute the one's that aren't! Make sure you get incorrect information corrected at all 3 reporting bureau's, not just one!

• Paying off outstanding debt is important as well. When you agree to pay off an outstanding bill, negotiate with the creditor to have them remove the negative mark from your report in exchange for immediate payment!

• Make sure that you pay your bills on time! Late payments can hurt your score, so make sure you are paying your current bills in a timely fashion. A few months of consistent, on-time payments can be the difference between loan approval and rejection!

• If you have an open credit line, push the amount of debt owed down! You want to keep your Debt-To-Income (DTI) Ratio down, and the less you owe, the better off your approval chances are!

Most importantly, watch out for credit improvement scams! There is so much fraud involved in the credit world that you need to be careful! Anyone who claims that for a small fee they can improve your score by 100 points in 30 days is probably lying to you! Speak with your lender or your realtor and discuss options for trying to build or rebuild your credit. They should be able to assist and direct you to a reputable credit counseling service.

~Jonathan Benya

Century 21 New Millennium

301-653-8116

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