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So what about us? What can we do to make ourselves more attractive to lenders?

  • March 22 2010 - Austin
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Answers (4)

Best Answer

Lenders want to see good long established pay histories, low debt compared to your total available revolving credit and a strong credit score above 700.  If you follow the first two rules your credit will eventually move into the mid to upper 700 scores... it just takes time and will depend on where you currently are in the process.

If you do not have much established credit or your current credit situation will not allow you to get a credit card I would recommend going to a local bank and getting a secured credit card.  You want to make sure they will report the credit card on your credit report so you can achieve the benefit.

Locally here in Austin (and I assume most banks will do the same) you can go to Frost Bank and open a CD for say $500-$2000.  They will then give you  a credit card with this as your limit.  You can then use the card just like any credit card.  Always keep the balance below 50% of your available limit or even less 40% is better.  If you do this in about a year the bank will most likely give you an unsecured credit card.  In the meantime you have an active revolving credit line that is helping you establish your credit.  Most lenders require 3 trade lines like this that are 12-24 months old so the sooner you can do this the better.

The key is to be responsible with your credit because the lenders today are pickier than they have ever been.
  • March 23 2010
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Profile picture for tiffdelgado
Establishing some credit is always smart. Depending on your credit score, you may be eligible for different loans. All the other answers are smart, too. I would take charge and establish some financial responsibility, save your money, pay your bills ON TIME, etc.
  • March 23 2010
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Profile picture for tonygim
Spend 8-24 hours of study to learn how to raise your FICO scort to 720+
  • March 22 2010
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Pay your bills on time
Keep a W2 paying job
Save Money
Save Money
Save Money
Do not go crazy in debt

Very simple formula... It is all about risk... lower your risk to a lender... scores rise, savings rise... Rates fall.. :)
  • March 22 2010
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