FHA Says: Pay Off Disputes Over $999

FHA Announced a BIG Change that will take place this summer.  According to the FHA Mortgagee Letter 2012-3, beginning July 1, borrowers with ongoing credit disputes totaling more than $1,000 will have trouble getting an FHA Mortgage loan.  (This date has been revised and HUD is seeking comments on the ruling) This is a HUGE change, because for … [Read more...]

Improve Your Score 50 Points – NOW!

We've written many times here about writing dispute letters when you have incorrect items on your report.  In addition to this, you could improve your score by 50 points if you would do the following: Pay off any verified bad credit item on your report. In exchange for your payment have the lender remove the item from your credit report.  This … [Read more...]

Does The Balance On Your Account Matter?

I recently read a report that said: "Several of my clients are in the credit restoration business and a recent conference call with some of the heavy hitters in the business revealed an astonishing new update to how the FICO score is computed. Balance management - that is the practice of getting the "balance to available credit" (similar to ltv) … [Read more...]

What’s In Your Wallet (It Makes a Difference) Part 2

Working on your credit scores so you can purchase a home? If you are not behind on payments, and you think you can manage the payments as they are (without closing accounts)… let’s talk about one of the most important things you can do to raise your credit score. Take out your wallet… Look at the Credit Cards; and find the ones that have the name … [Read more...]

What’s In Your Wallet (it makes a Difference)? Part 1

Are you considering a Home Purchase???  Many of us realize that credit scores are the Holy Grail—the one thing you do not want to screw up… and if you have, it’s the one thing you want to figure out how to FIX... FAST! We talk to people all the time who have been laid off, or had an accident, or got sick, or relocated and then hit hard times. The … [Read more...]

Minimum Credit Scores for Mortgages in 2012

I"ve written a couple dozen times about scores and how to increase your score - but I don't think I've mentioned (here anyway) what the goal is.  If you want to buy a car - your goal is to get your score to AT LEAST a 525 on all three credit bureaus.  If you are purchasing a home... the bar's a little higher. Most FHA underwriters now require a … [Read more...]

Closing a Credit Card??

If your trying to decide what to do with all that cash Washington is sending you in the next few weeks... you might also be looking at your credit report to see how to use that money more effectively. In today's environment we don't usually suggest that folks close credit cards with no balance, but if that's a decision you've made, here are some … [Read more...]

What To Dispute On Your Credit Report

  If You're Huntin' A Better Credit Score - Let Sleepin' Dawgs Lie! If you are looking for a new home, you are probably aware that your Credit Score is a CRITICAL item in determining your interest rate and possibly how much house you can buy / qualify for! We talk to people every week who receive a copy of their credit report, see some … [Read more...]

Inquiries and Credit Scores

Does the TYPE of Inquiry on your credit report Matter? "Above the Line Inquiry" has an impact and the Below the Line - soft inquiry... does not.  The account review is below the line, where a creditor is just doing a check.  The folks who do an employment pull are also below the line. When you apply for a credit card, mortgage, car, etc - those … [Read more...]

What does Rapid Rescore Mean?

Rapid Rescore is just what it sounds like... let's say our credit model shows that if you pay a credit card down to $300 your score will go up 20 points. Well, once you have evidence that you've made the payment - you send us the documentation, and we get the scores updated! That's the good news... here's the BAD NEWS (sorta): It takes almost 10 … [Read more...]