There has been alot of talk about Loan Officers taking on the role of doing credit repair on people that that have to low of credit scores. Some will charge a fee for the knowledge on how to better the clients FICO score to get ready to obtain a mortgage. This is highly illegal since there is actually standards set from the National Credit Reporting Association. For a credit repair agency to start working on your credit they are to have a clear and exact contract laid out for you as the customer. There is to be no fee to be paid until the services have been complete. There are a plethora of agencies out there do not meet the requirments set forth by the CROA.
I have always been one to sit down with a client that just was out of reach of getting qualified due to their less than perfect credit. I look at these credit reports all day long and know a good amount of things that can help your credit out. No, I don't charge a fee for my advice on how to better your credit. I believe it is my job to educate you on your credit report. I do have a strong passion for helping people get qualified for their Idaho Home Loan.
Here are some things to go buy:
Have at least three trade lines open i.e. Credit Cards, Lowes,Home Depot, Sears, even a personal loan, Car loan.....
The rule of thumb on your credit cards are to keep them at a third of whatever the max limit is. This shows potential banks that you have a high credit limit than what you balance is. This makes you seem like a stronger borrower not needing to go to the max limit.
Never have the tradeline such as Sears or Citibank close your account. It has a worse effect on your credit than if you were to close it yourself.
Before looking at obtaining a Mortgage do not open any new trade lines because they do effect your credit. Car dealerships are the worst at this because they will shop you like crazy with out you knowing it your credit will be pulled 12 different times. So this is definately something to stay away from.
Of course the longer you have had your trade line open the better it is for you.
As for negative tradelines on your credit such as... collections .... judgements...
When you pay these items off it is always a good rule of thumb to get them to fax you a letter immediately that it has been taken care of. The reason is creditors are quick to put something on your credit report but slow to take it off. So will try to charge you twice on the same account. With that said make a file and keep these papers just incase it comes up again.
If there is negative things showing up on your credit report that are false or you have taken care of them you can dispute them online. All you have to do is go to all three websites of Equifax,TransUnion and Experian. Dispute them! !! ! The creditors then have 30 days to respond to your dispute or it is suppose to come off.
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