To Get Higher Score – Keep Credit Cards Open- But Don’t Use Them?

Transunion started using a different "Black Box" model in January, and now Experian and Equifax are making technical adjustments too.Although they will not allow us to know the exact formula for calculating the score - we know SOME of the changes! Some of the changes are Collections that start under $100 will not have an impact on your … [Read more...]

What Can Be Done To Improve My Score??

Potential Homebuyers ask us everyday, "How can I improve my credit score???" There's not a simple answer, because every credit history (and score attached to that history) is like a snowflake. There are some concepts that are important to understand about Credit Scores and improving that score. Late Payments Showing on Report: If your … [Read more...]

Secured Credit Cards

Trulia recently did a a study of first time home buyers and discovered that about 30% of the people they interviewed pretty equally fell into one of these categories: Wanted to Buy a home but they worried about down payment.  (If that's you - no worries, there are tons of No Money Down Home Loans!) Wanted to Buy a home but they worried that … [Read more...]

Good Credit Advice

First off... let's discuss what Secured Credit is. A Secured Card requires you to make a deposit in order to obtain the credit card.  If you are doing this - you are either a parent with a young child that needs a credit card - or you are re-building. Because there are other ways to obtain cash for a child- let's assume you fall into the … [Read more...]

How Foreclosure, Short Sales and Bankruptcy Affect Credit Scores

Want to know what is hurting your scores the most??? There's a scoring system that each repository uses, so TransUnion calculates scores a little differently than Equifax and Experian. FAIR ISAAC Damage Points - per FICO.com: "Maxxed out credit card" - 10 to 30 points 30 day late payment will cost you 60 points Bankruptcy hits your scores for … [Read more...]

Divorce and Refinance

With the economy being what it is... I guess more people are considering divorce.  I haven't seen a "headline" about it, but we're certainly getting calls!  If you're in that boat, my heart goes out to you... and I have some things you should be considering. Normally, folks refinance their home to get a better rate, or to go from an adjustable … [Read more...]

Clean Credit Requirements and USDA Home Loans in NC

“Clean Credit” is a slang term used OFTEN in mortgage lending. It refers most often to someone who has 12 months with no late payments.  But it’s not just late payments, it also refers to 12 months with no new collections filed against you.  12 months with no judgements of liens filed on your credit report. 12 months with no one writing … [Read more...]

Disputing All Credit – Not Getting Mortgage Approval

We talked to a Veteran today who wants to buy a house, First Time Home Buyer, who was referred to a "Credit Repair Company" a couple of years ago... they, of course, disputed EVERYTHING on his credit report.  They also suggested that he obtain a Secured Credit Card (which he did) and maintain a balance roughly equal to half of the credit line … [Read more...]

Why Are My Credit Scores Different??

We often talk to folks who are ready to buy a house, and they have the credit scores that they get for free every year.  Well, those scores are not the same as the scores you get for a mortgage credit report.  In fact OUR Credit Score numbers and the ones they send you, are almost always DIFFERENT! Okay- so by now you know that you will have 3 … [Read more...]

Divorce and Credit – What You Need To Know

With the hard economic times people are facing - I guess it's not surprising that we are seeing many more people who want to purchase a home - but have a messy divorce in their recent history. When you have a Dissolution of Marriage where one party says they will take responsibility for the account... that's nice for the courts... but it doesn't … [Read more...]