Bad credit can ruin your chances of getting a home loan and buying your dream home. So what options do you have?
- 1. Put the house in someone else's name, like maybe your spouse's name?
- 2. Bite the bullet and pay astronomically high-interest rates?
- 3. Give up on your dream of buying a home?
- 4. Boost your credit score and transform bad credit into excellent credit?
Today, Golden Financial Services will show you how to do #4 on this list of options.
First Credit Repair Tip:
Realize what your past mistakes were, and use these past mistakes to fuel your desire to transform your credit into excellent credit. Without fuel, your engine won't make it far. You need to stay motivated for 12+ months which is how long it will take to grow your credit score by 100+ points.
Second Credit Repair Tip:
Since lenders will probably reject your credit card application, go to the bank and get a secured card. This is the only guaranteed way to get a credit card when your credit is in the pits. And a credit card is your top tool to increase your credit score so that you can buy your dream home!
Third Credit Repair Tip:
After getting your credit card, log in to your account online and set up automatic bill pay. Make sure that your bill is paid in full and on time every month. Now, this is only as a backup option, in case something happens one month and you forget to pay your bill, but the next tip will require you to pay your bill multiple times in a month.
Fourth Credit Repair Tip:
Start using your credit card to pay for everything you do. Use your card, and then call the credit card company and pay the bill over the phone immediately after using your card. Pre-pay the balance off, before the statement even arrives. You'll have a negative balance at times, but at least your bill will be paid immediately. By paying your credit card multiple times each month, you'll quickly establish a positive payment history. If you only pay your balance once per month, it will take you longer to build excellent credit.
Fifth Credit Repair Tip:
Call your bank and have them switch that secured card to an unsecured card because unsecured credit cards carry more weight on your credit score. As long as it's been at least six months of using and paying your balance as instructed on tip number four, you should have no problem getting approved.
Sixth Credit Repair Tip:
After using your unsecured credit card and paying the bill in full multiple times per month, now get a second credit card. This time, shop around for the right card. Now that your credit score is out of the red (red for bad) zone, you can be picky about what credit card you apply for! Only get a second credit card if it pays you at least 2% on whatever type of shopping you do most. In 2018, credit cards pay as much as 5% cash-back.
Cash-back is like extra income. And cash-back if tax free!
Seventh Credit Repair Tip:
Get inaccurate, negative marks removed from your credit report. You can sign up for a credit monitoring service, where they make it easy to dispute items that don't belong on your credit report. Most of these services allow you to login to your account online and simply click on a button that says "dispute information". You can also use a debt validation or credit restoration program to help you clear derogatory marks from your credit report.
