I am looking to buy a house, but my fico is low. How can I raise my scores

I live in So Cal and the price to buy even a 1 bedroom in a run down neighborhood are outrageous. I make enough to pay the mortgage for a $550,000. home, but I need to have a 700 fico to be given a decent rate. Any suggestions will be greatly appreciated.

What is your score. You can piggyback off someone that has good credit. Piggyback is when they make you an authorize user on their account and you get the same point they get for them paying on time.
good luck

Use some of that buying power to build your credit. This is really not a quick process, but I am resourceful and capable of getting the job done. Let's set a realistic date of say 1 1/2 months. If your family has a lotta cash, ask them to assist with the down payment. We'll get to that later and deal with the credit now. Using your credit report contact all creditors-people you owe-and negotiate a pay off of outstanding expenses-debts. Sometimes you can pay $300 vs. $500 making the process less costly and faster. Not all creditors will negotiate, so ask for a payment plan that will allow you some time. But, you want a letter saying your account is up to date and being paid and current, directly after the first payment. As a matter of fact, attach all reciepts to your credit report of paid debts that were owed. Eventually you will get a new an approved credit report. After contacting creditors, paying off old accounts, setting up payment plans and collecting your letter, believe me your credit score is all ready improving. This could take up to 8 hours over the phone. Get the facts straight asap, by having the letter faxed to you if possible. Once you have crossed off and prearranged existing debt, order another 3 tier report that would give you an updated score. Send all three credit reporting bureaus Equifax, Experian, and TransUnion a letter requesting an updating credit report and attach copy of your paid receipts and letters from creditors. Keep all originals, since they will be used repeatedly. Visit your local First Time Homebuyers agencies for some assistance, such as grants and eligibility for CA residents. Fannie Mae is a good source. However much of this, especially the initial phase, can be done on your own. Here's a Recap-Credit report (listing creditors) research and contact creditors, arrange pay offs and payment plans, recieive letters faxed or in the mail within 7 days, write to credit bureau for updated report, attaching copies of letters from creditors and paid receipts, contact home buying agencies to reward your progress. Finally, ask your family for a gift donation towards your home purchase. A soft ask could be done over lunch, dinner party, or barbeque, etc. If you receive some help, be very grateful. Include others on your endeavor by evaluating what assistance they can provide. Otherwise, stay focused, disciplined, and prepared to go beyond No, when this is the response you get. This can be done in 1 1/2 months. Keep a working budget from here and ever after. Don't forget to use your buying power to convince home buying agencies that you are more than ready because you've prepared. Good luck!

There is no quick way. Credit scoring pays the most attention to revolving credit. ie credit cards... I am not sure what your score is but consider building long term credit history. Realistically it will take you at least a year to raise your scores.

Pay your bills on time, don't file BK, be financially responsible for 12 months..... your scores will go up.

Sorry there is no "shortcut".

I don't really know if there is a short cut. It really depends on why your FICA score is low. If it's because you haven't been paying your bills on time, start doing so immediately. If it's because you've never had much credit, then take out a loan and pay it back (on time), finance a car, or get a few credit cards and use them and pay them off each month.

Getting a rating over 700 can take years, it took me about 3 years of having credit to go above 700. Now, it's about 740 (after having perfect credit for about 8-10 years).

Good luck

Either pay your credit cards down or get your credit limit raised....either way your score will be raised. However, you need to realize that not all banks/mortgage brokers update their credit scoring software monthly, which means even if you do raise your raised score may not show up right away. It may take a couple of months.

Paying off your balances will raise it some but it takes months a paying bills and spending responsibly to see a dramatic difference. You need to review your credit to make sure it is accurate. By deleting derogatory items this will improve your score. If they are not yours dispute them and have them removed. The credit bureau has 30 days to respond. If they do not respond within 30 days the derogatory item must be removed regardless if it is valid or not.

It depends on what your credit score is now.
Off the top:
1. Make sure your credit balances for revolving debt is less than 30% of your credit limit.

2. Verify the information on the credit report is correct.

If you do these things fairly quickly, you may be able to do a "Rapid Re score" . The bad news: this may be a pricey option. But if it will save you money on the interest rate, then it may be worth the investment.
Or...
You may want to consider seeing a credit specialist to have them look over your credit report and clean it up. They will usually advise you on things you can do to bring your credit score up. Again, this may be worth the investment.

You might want to look at other financing options like ARM's.
Ask yourself how long you're going to be in the loan. If you don't think that you'll be in it for 30 years, then it might be a good idea not to be in a 30 yr. fixed rate.

I hope this answers your questions. Please e-mail me at amkornele@yahoo.com.

Best of Luck!

Anne

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