Raising a credit score

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I have recently went through a messy divorce, and over the past three years have not been making timely payments on my bills. I have also gained a huge amount of debt....she got the house. I want to get back to a credit healthy life, so i can buy a house. My current credit score is 530, i know i need to get to about 600 to get a mrtgage loan. What is the quickest way to raise a credit score. I am currently making payments and have been for the past 10 months. any advise would be appreciated.

banker0679 · Posted: Wed Mar 26, 2008 8:43 am Post subject:

with FHA you dont need a 600, but will need on time payments for the last 12months. Most FHA lenders are putting 580 as the minimum score, but some lenders still go as low as 400. You will only need a 2.25% down payment.

To raise your score -
1. On time payments will help
2. Go over your credit report with a mortgage professional to see if there are any mistakes that can be disputed.
3. Look to see if there are any open collection items that need to be resolved.
4. Look to see if the dates are correct on all collection items. The older it is the better. If it's new then it will impact your score more than the older ones.
5. Make sure you have 3 tradelines that have been opened for 12months. A tradeline is an auto loan, mortgage, student loan, store credit card, gas card, and any major credit cards.

The quickest way is to try to dispute erroneous items on your credit report.

gmakerley · Posted: Wed Mar 26, 2008 11:05 am Post subject:

guess what!!! the system timed me out, so here is my commentary, with all due credit to me:

thank you so very much, banker, for comment #2. i especially liked seeing "a mortgage professional" in that comment. so many people will go out and pay for someone's "services" to review a credit report, and that is simply unnecessary.

i would add a number 6 and a number 7 as well, though.

6. strive to get your balances owed to approximately 30% of the credit limits wherever possible;
7. if you have accounts that are now at zero balance, do not close them. keep them open as that will have a favorable impact.

oops...here comes #8.

8. do not open any credit accounts for the foreseeable future.

jbarto65 · Joined: 04 Nov 2007 Posts: 445 9.51 Dollars($)

Awesome advice, really nothing else left to be said, except hang in there and goodluck, hope you see some good results soon.

fireyone_02 · Joined: 20 Mar 2008 Posts: 245 52.26 Dollars($)

It is great advice there. With the way the economy is I wouldn't advice opening any accounts either.

jbarto65 · Joined: 04 Nov 2007 Posts: 445 9.51 Dollars($)

I know I have thought about shopping for a new credit card, but I have found that it is a real pain in the keister, I have given up, I don't really need it anyway, so I am not going to bother. It is a real pain with all the products out there.

fireyone_02 · Joined: 20 Mar 2008 Posts: 245 52.26 Dollars($)

Its definately a high stakes market. I wonder if there was ever a time when it was easy and there weren't so many people who wanted your business that were sharks?

jbarto65 · Joined: 04 Nov 2007 Posts: 445 9.51 Dollars($)

I gave up on it a while ago, it is a real pain to me, then they bounce you around to these other sites that are just high intrest crap. I don't care to look anymore, too much of a pain.

fireyone_02 · Joined: 20 Mar 2008 Posts: 245 52.26 Dollars($)

I really don't think with the economy the way it is now that even if you had ok credit you are going to find a good rate. We are on some pretty shaky times and everyone is in extra precautious mode. Can't say I blame them. Just think of it this way...it would just be another bill to pay.

jbarto65 · Joined: 04 Nov 2007 Posts: 445 9.51 Dollars($)

I don't have many bills fortunately, monthly ones anyway. The biggest cost for me is the price of gas and etc. The things we need to make money.

fireyone_02 · Joined: 20 Mar 2008 Posts: 245 52.26 Dollars($)

My gas besides my mortgae here..at least I thought...until I started adding. The gas wins...That is absolutely SICKENING!!!!!!

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