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How To Repair Bad Credit Fico Score Secrets!
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How to Repair Bad Credit Fico Score Secrets!

Do you know the steps necessary to help you repair bad credit?

Do you know the FICO score secrets?

Are you looking to purchase a new home?

Do you know what the creditors are looking for before you can be approved for that mortgage loan?

Do you have negative marks on your credit report that can possibly cause you to be denied for a loan?

If you don't know the answers to these important questions, then I would suggest that you find out before you before submit your application for a mortgage loan.

Today, I would like to share with you 3 tips that you may not be aware, but, could potentially cause your loan application to be denied!

Your Annual Credit Report

First you need to get a copy of your credit report. You may order a copy from the credit bureaus, Transunion, Equifax, and Experian. There is a small cost involved when your order your reports.

After you received and reviewed your credit report you can determine whether you have any accounts that are being reported as 30 days over due.

Items such as this will lower your FICO score. You will want to clean these items up before you apply for any credit.

Don't Apply for Additional Credit Cards

Tip #1. Anytime you apply for any credit, it will reduce your score. When you get those pre-approval notices in the mail, you want to destroy it immediately! There will be others, especially, after you have cleaned up any minor inaccuracies on your report.

Your goal is to get approved for that mortgage loan. Applying for additional credit while you are in the approval process will send a red flag to the credit grantor. Just don't do it!

Outstanding Debts

Tip #2. Never, under any circumstances let old debts remain on your credit report. When you have judgments, or charge-offs that are still being reported to the bureaus you want to do whatever is necessary to pay them off.

Talk with the creditor or collection agency. If is a collection agency there is room for negotiation. They bought the loan from the creditor and they are looking to make back their investment and plus more. They are looking for what is called ROI (Return On Investment).

This can work in your favor when you are negotiating. Sometimes, if you're successful at negotiation, you can get this debt reduced to pennies on the dollar. When you are successful, be sure to get it in writing, what you've agreed on.

Also, ask for the item to be removed from your credit report once the terms of the agreement have been met. Use these tools that I'm offering you today and you will succeed in bumping up your FICO score.

Debt To Income Ratio

Tip #3. If you find it necessary to carry a balance on your credit cards, you want to be sure that your debt to income ratios are in line. The department of HUD uses these ratios 29% - 41% of your income. What this means is that the smaller number 29% of your gross income , which does include your housing allowance.

And, the latter number 41% does include your housing, plus all your other expenses such as student loans, car payments, etc.

Here is another statistic that you should be aware of. Creditors will tell you that whenever they look at a credit history and they are reviewing the credit card balance, it will send up a red flag if your credit cards are at or nearly maxed out.

Creditors will tell you that as a rule of thumb, you should never carry more than 28% to 30% of the maximum limit allowed on your credit cards. I would suggest that you take it one step further and pay the card off at the end of 30 days.

If you will get in the habit of never charging more on your card than you can pay off at the end of the month, and you do this consistently, then you shouldn't have any problem getting a mortgage loan approved.


Street Talk

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