Home buyers and Credit Fitness

Many home buyers now and into the foreseeable future will be facing tight lending standards and the need to improve the credit score to get prequalified for mortgages. Some steps to speedy credit repair to gain lender approval and the best possible rates; especially if you are a few months away from purchasing.

CREDIT CARD WISDOM

• paying DOWN revolving charge cards is more beneficial than paying down student loans or auto loans
• ALWAYS leave 30% or higher between what you owe and the credit card limit
• Use cards with care EVEN IF you pay off the balances monthly; because depending on the statement dates the lender may see the big balances
• pay down the cards closest to their llinits for speedier credt repair. The lender will see the "gap" it wants to see.
• Do NOT ask creditor to lower credit limits. Generally, carrying low balnces on several cards is better than one large balance on one card
• check your credit card limits to make sure the report is correct. Limits may not be reported on all cards.
• Never make a late payment on credit cards or any loan.

PROTESTING ITEMS:

• Protest unjust negatives, such as late payments, collections that are not yours and any items not reported as "paid as agreed", if you paid on time and in full.
• Protest items listed as unpaid that were included in a bankruptcy and items older than (7) seven years (10 bankruptcy)
• Focus  FIRST on th elarger newer negatives listed on the report

It is important NOT to worry about smaller items such as incorrect address information, or old employer listed as current. Unless ther is the possibility of identity theft or the file is mixed up with someone else.

This certainly is not an all inclusive list of the steps that can be taken to improve a credit score, it is a great starting point, before attempting to get pre-approved and purchase a home.