If you are planning to refinance your mortgage or purchase a new home in the near future you should plan your credit repair strategy very carefully. You must do everything in your power to boost your credit scores, but there is more to consider.
Some mortgage programs require a minimum number of tradelines. If you join our credit repair services and we see that you do not have any open accounts we will offer to help you open new credit cards to insure that you meet lender requirements. If you do not qualify for regular unsecured credit cards we will suggest secured cards. Please be aware that new accounts can take up to six months to yield a positive credit score benefit, so consider your own timeframe carefully before applying for new credit.
The FICO scoring model places significant weight on the relationship between your revolving balances and your account limits. If you have the means to reduce your balances below 20 percent of your limit, do so. Don’t underestimate the importance of this matter, credit card balances can easily swing your credit score by over 100 points.
Credit Repair and Timing
Plan your credit repair project carefully. If you plan to reduce your revolving balances make sure to do it at least 60 days prior to making your mortgage application. Credit card companies can take this long to report the balances to the credit bureaus. You should also note that the account balance that is reported to the credit bureaus will rarely be the balance immediately after you make a payment. So reduce your balances 60 days before making application and don’t use the cards again until after you closed on your mortgage.
Contact us for a credit repair consultation. We will identify everything that can be done within your timeframe to clean up your credit report and boost your scores. Sometimes the seemingly little details can make a big difference. When it comes to your mortgage, every little thing matters.