Building credit what does it take?

So you are looking to buy your dream home, but your credit is not so good or you do not even have any.  Many people think that if I do not do anything it will get better.  That is wrong!

You need to keep your good credit going.  People think that when they get into trouble they should close credit lines and shut things down.  That is not the case.

Here is an example.  I have a client and his wife.  They got in some trouble about 3 years ago.  They stopped using there cards and shut down lines of credit and have just paid cash for everything.  That is great, they have no debt.  Right??  well yes and no.

Yes they are debt free, but they have no credit.  They did not use credit and there once ok scores have backed up and are now not so good.  The wife saw her 640 score, one that would get you a home loan. go to being no credit score.  The fact that they did not reestablish good credit behind bad, really hurt..

So how can one reestablish credit?  Here is what you need to do.  Go to the bank and ask to open a Credit card with a small credit line.  Oh, they will not give it to you, because of your credit. That's right!

Next go to the bank with $300.  Tell them you want to open up a pre-pay credit card.  I just had a client do this.  It is no big deal.   If you do not have $300 to help your credit, you should not be looking to buy a home.  Because you need money for closing costs and your payments.  If you dont have money now, what makes you think you will have it when it comes time to make the payment.  (just being honest)

The next step is to buy something for like $20.  When the bill comes in pay it off.  Do not get yourself back in trouble.  This is for your future home buying.  Next month do it again.  You will reestablish your credit in a month or two.  You will see your credit scores increase quickly. 

Carrying a balance is ok, but make the payments on time and do not allow your carry over to be over 15% of the max credit limit.  So on a $300 prepaid card, do not carryover more than $45.  Anything over that will not help.  But you are best to just pay it off.

For more information on mortgages or credit repair please contact me at 831-801-8667 or email
kwoeste@afncorp.com

To complete and secure online application go to http://www.hollisterhomemortgage.com/keith


http://www.hollisterhomemortgage.com/

http://www.mortgages4california.com/

Thank you

Keith Woeste


Home Loan Consultant

American Financial Network

330 Tres Pinos Rd.,Ste F3

Hollister, CA 95023

PH.831-801-8667

FX. 831-665-5260

NMLS#292588

To complete and secure online application go to http://www.blogger.com/goog_480511565

http://www.hollisterhomemortgage.com//

http://www.mortgages4california.com/

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