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Wanting to rent or purchase a home, what things should I address on my credit first?

Really wanting to repair my credit to purchase a home.  What things should I address first before others?
  • August 22 2011 - Saint Louis
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Answers (8)

ANYTHING NEGATIVE ON YOUR CREDIT REPROT WILL SOMEHOW WORK AGAINST YOU, such as late payments, no credit at all, collections against you and likewise.
  • September 17 2011
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It would be in your best interest in finding a lender who will guide you thru this process and help get you " loan ready"  The best one will do this for no charge, for the opportunity to earn your business.  Let us know if you need a referral.

Good luck!
  • September 13 2011
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First and foremost, you need to find out what your current credit rating is. There are 3 major credti rating services (CRAs): Equifax, Trans Union & Experian. You are  entitled to 1 free report per year which you should review for accuracy and dispute the information if you find an error....80% of credit reports contain at least one error so it is important that you pay close attention to the report as one late payment can stay on your credit report for up to 7 years!
Once you've had an opportunity to assess your credit score, it's time to look at your outstanding debt. The key here is to meet or exceed your minimum payments on your outstanding debt....whether it be credit cards,an auto loan.....and pay on time! Late payments, especially successive, will dramatically impact your credit standings. For those that do not have credit cards or a revolving account of some sort, it may be time to think about establishing an account or two to use however comfortable, as lenders and CRAs need to see a track record of some sort in order to establish a credit score.
Fianlly for those thinking about purchasing or refinancing a home....now is not the time to go out and set up a new credit card....even if the store is offering 20% off  all purchases the first day the account is open. On the other hand, don't  start closing accounts in an effort to minimize your credit accounts on hand, as both actions will have a negative impact on your credit score....at least for the short term, which can impact your ability to qualify for the loan/or the rate you ultimately are approved.
  • August 22 2011
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Improving your credit score requires time and making good decisions over that time. Reduce your income/debt ratio by paying down credit card balances; try to keep your balances within 10%-20% of your credit line. It may not be a good idea to close credit card accounts as this will decrease your debt to available credit ratio.  Pay all bills (credit card, utility, etc) on time.

Finally, holding down a steady job will help when lenders are considering giving a loan.
  • August 22 2011
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FICO score Must be over 620

David Cooper
  • August 22 2011
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Profile picture for wetdawgs

Reduce your credit card balances to <25 to 30% of the balance available (and never go above that amount).   Recognize that the balances will contribute to your debt/income ratio.

Pay everything promptly.  You can't erase history, but you can avoid adding to the late payment record.

  • August 22 2011
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Profile picture for Readytomoveup
Credit Card balances,  and late payments is what I can think of at this moment.
  • August 22 2011
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Profile picture for wetdawgs
What things are negatives on your credit at the moment?
  • August 22 2011
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