This Article is About
bad credit
fico score
annual credit report
red flag
How To Repair Bad Credit Fico Score Secrets!
Join 1000's of Authors at StreetArticles Today!

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

No comments present
You May Also Like
Bad Credit Sucks Fix It Now
Are you ready to change? Have you been turned down for a loan recently? Have swiped your credit while in the checkout lane in the grocery store with you hands behind your back hoping that the cashier won't tell you that your credit card had been decline? As you stand…
By:  in  Finance  >  Credit Tips   Jan 22, 2012  
  Likes: 4

Do You Want to Know How You Are Able to Legally Remove Bad Credit
Do you want to know how you are able to legally remove bad credit? There men and women that have credit balances that think that poor credit issues that are on their credit report are not possible to be removed. They find fault with their unwise purchasing habits and all…
By: Sonny Apollo in  Finance  >  Credit   Mar 07, 2011  
  Likes: 1

Top 10 Bad Credit Rating Repair Tips
#1. Get Organized Credit can be a simple process. We as a society have made some stupid choices when it comes to credit. Then after having made those choices, then we want to stick our head in the sand and act as thought nothing has happen. When nothing could be…
By:  in  Finance  >  Credit   Jan 05, 2012  
  Likes: 3

Credit Dispute Solution
Do you know how to repair your credit? Have you wondered how to settle your credit disputes? Well... you're not alone there's millions of us out there up to our earlobes in debt and don't know how to get out. Meanwhile big business a.k.a Credit Repair Agencies take advantage of…
By: Ramon1 in  Finance  >  Credit Tips   Sep 27, 2011  
  Likes: 2

How to Get the Best Cash Back Credit Card?
Selecting the best credit card provider is certainly not an easy job. You need to consider a number of important parameters and the fulfillment of each and every parameter will dictate your selection. The key to an effective credit card search process is research. Talk to friends. Talk to acquaintances.…
By: Zara Ali in  Finance  >  Credit Tips   Feb 23, 2016  
  Likes: 0

How To Raise Your Credit Score With These Simple But Effective Credit Tips
Many people across the nation share the problem of a negative credit score. Many of those people are seeking easy ways to increase their score so that they can qualify for better rates and bigger loans. This article is full of ways that you can improve your credit score easily.…
By: Darin Sewell in  Finance  >  Credit Tips   Nov 17, 2011  
  Likes: 1

How to Effectively Remove Inquiries From Your Credit Report
A lot of people do not know this, but inquiries on a credit report can drastically and negatively affect theirability to get financing. In fact, having just 6 inquiries on your account within a short 6-month period can render you automatically disqualified in the eyes of many modern lenders. Despite…
By: Farrah Graham in  Finance  >  Credit Tips   Oct 30, 2015  
  Likes: 0

How To Prevent Bankruptcy
There are many things you have to know about learning how to prevent bankruptcy. All boils down to learning how to prevent bankruptcy if you must be able to manage your finances well. You need to find out if there are some things you need to do so as to…
By: Scott Newman in  Finance  >  Credit Tips   Dec 29, 2010  
  Likes: 0

How to Fix And Maintain A Good Credit Score
Getting Out Of Debt Did you know that a simple three-digit number could be that singular factor that could be standing between you and your dream? This could be buying a car, purchasing a home, starting a business, or even something as simple as managing your personal finances. Your chance…
By: Shawn Deny in  Finance  >  Credit Tips   Oct 19, 2015  
  Likes: 1

Ways To Improve Your Credit Score
Your credit score, no doubt, is a very useful number that lenders need to know whether or not they will extend credit to you. It also dictates what the interest rate and terms of the credit or loan will be. The lower your score, the less likely you will be…
By: Yvonne Kelsinger in  Finance  >  Credit Tips   Dec 30, 2010  
  Likes: 0

Do You Have Bogus Account Payments? A Bad Credit Repair Is Your Answer!
Doing a bad credit repair fix is simple if you know how to try to to it right. Remember that this is often not an overnight process. Discipline and a dose of frugality is the new approach you might take in your life and ought to be practiced by those…
By: Sonny Apollo in  Finance  >  Credit Tips   Feb 02, 2011  
  Likes: 0

Some Of These Things Might Leave You In Heavy Debt
It’s very easy for people to become overwhelmed by their credit card debts due to a number of reasons but there’s still a silver lining to this ominous reality. You aren’t alone! Others have faced the same issue; some are able to pay their debt by careful strategizing, not only…
By: Shawn Deny in  Finance  >  Credit Tips   Sep 29, 2015  
  Likes: 0

Applying for Credit Cards With No Credit History
If you've never owned a credit card, you are unlikely to have a credit history. Applying for credit cards with no credit history can sometimes be as hard as applying for them with with a bad credit history. It is often the case that credit card providers turn people down…
By: Rose Richards in  Finance  >  Credit Tips   Aug 31, 2011  
  Likes: 0

How Could the Credit Crunch Affect You?
While you might think of banks, businesses, and government entities when you hear the words “credit crunch,” these times of economic turmoil and uncertainty can affect you, too. Some economic sectors are affected more than others during these times, and some industries and businesses suffer more, as well. However, if…
By: joymali in  Finance  >  Credit Tips   Dec 11, 2013  
  Likes: 0

Credit Repair Facts And Scams
There's a new scam in town and it is called credit repair. Unfortunately, there is no way to know exactly how much money this scam rakes in per year because most victims are too embarrassed to come forward and file complaints. It starts with the promise of taking your low…
By: Maria Lazzati in  Finance  >  Credit Tips   Dec 05, 2011  
  Likes: 0

Article Views: 2100    Report this Article