Credit Scores and Credit Repair Companies
As we know not all companies are created equal and the one you choose to help improve your score is very important. One thing I know for sure is most of us do not understand our scores or how they can be repaired. Recently I’ve formed an alliance with a company that does credit score repair and I have to say they do it right and for a reasonable amount of money. If you would like their information please contact me directly.
Did you know that if you pay off a collection from 3 or more years ago, you can actually hurt your credit score? Doesn’t seem to make sense does it? The reason behind this is the majority of your score is calculated on the last 24 months and when you make that payoff you update the collection and now it shows active in the last 24 months thus lowering your score. Usually at the worst time…when you are getting approved for a loan.
Instead you should make this a condition at closing. This allows you to make the payoff at closing after the loan has been approved based on the credit score at that time. Now of course the payoff will still hurt your score but you’ve already closed on the new home.
How about credit card limits? At what point does it make sense to keep credit cards opened and with a balance? Most companies agree that anything over 75% of your limit will lower your score but at what point does it help? Most say just getting your revolving balances under 50% can increase your score by 60 points within a few months. Those points can make a difference between getting the home of your dreams or not. If nothing else it could force you to accept a higher interest rate.
When it comes to buying and selling real estate there are many techniques that you can do to actually hurt your chances and many things I can help you overcome. This is why it’s so important to use the services of a competent REALTOR and loan officer.
For more on how to improve your credit score please email me at Jay@ValleyREAdvisor.com and I’d be happy to send you a detailed list of items that will help.
