12 months to a 720 Credit Score

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Don't forget that you can always go online to our website to get more information on topics. I have articles for you to access all the information from the previous months. Just click here:

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There you can access previous newsletters, articles, and tools that will help you improve your credit.

We will also be coming out with better ways for you to improve your credit even if you are not in one of our homes.  

 So let's continue with this month's newsletter 

 This month's News Update

12 on time payments for each of your payments is mandatory to get a home loan.

It used to be that if you had a good excuse, a lender would excuse a late payment...but not anymore. If you have one late payment, you are instantly 12 months away from getting financed again.

Don't forget that you can always access your own credit report for free once a year.

Here is how you do it:

Our tenant home buyers are responsible for caring for their home, making their monthly payments on time and in return they become homeowners.

Rates are great right now.

Look up your credit report....if you can take advantage of the $8000 tax credit plus the awesome interest rates you need to do it now... 

If you are not quite there pull your report and lets get to work! 

If you are just joining my newsletter group...Welcome. 

 

Let's review what we have covered so far this year.
 
From the previous newsletters; you have learned what a FICO score is and why it is so important.
 
The 5 most important factors that are considered in the credit score formulas are:
1.     Your payment history
2.     The amount of money that you owe
3.     The length of time you have had credit
4.     The type of credit that you have
5.     How many credit Inquires
 
Your payment history is very important and something that you can  change immediately.  It is the one thing you want to start improving right now. Once your history improves, everything else will follow.
 
You want your scores to reflect a positive payment history; to show that you make your payments and you make them on time.
 
Next, the concept of the "utilization rate" is the important factor. This is where you should only be spending around 30% of your available credit in order to bring your scores up. That means 30% of every credit card limit, not the total overall, but for each line of credit.
 
Then, I reviewed the types of credit cards, the how and the why you need to use them. I then discussed if your credit is being reported accurately by the credit card companies and went into depth on installment loans.
Now we are into the harsh reality that there are likely errors on your credit report.
 
Did you know that you have at least one error on your credit report?
 
Removing errors from your report is a time consuming endeavor, but it can be a very effective way to improve your credit without paying out extra money.
 
85% of people have at least one error on their report. So we can pretty safely assume that you, have errors on your credit report!
 
What constitutes an error you ask....Well, consider the following: a late payment, charge-off, or collection that is reported more than once  OR Inaccurate information like your address, your social security number, account limits, even bills that do not even belong to you or unauthorized charges made to your credit card.
 
So what do you do?? Get out that credit report and start reviewing everything on it to ensure it is accurate. Concentrated on the following errors first as these are the most important:
 
Duplicates: collection accounts less than 2 years old and listed more than once. This is high priority and needs to be corrected.
An inaccurate credit limit: are the limits on your credit card statement matching up with what your credit report says. This is high priority and needs to be corrected.
Accounts discharged by a bankruptcy filing listed as "past due" instead of "included in bankruptcy". This is a high priority that needs to be corrected.
Mistakes in your payment history- this only needs correction if you made payments on time and it was not recorded as such. Also, if it is in the last 2 years and if it is hurting your credit have it corrected.  
Personal Information:
Social Security number- if not correct, this is a high priority to have corrected.  Perhaps there has been identity fraud or your credit report is being merged with another person.
Incorrect Address- not usually a priority unless there has been identity fraud.
Incorrect Date of Birth- not a priority unless related to identity fraud.
 Incorrect Account Numbers: not a priority unless related to identity fraud.
Delinquency older than 7 years: write to have it removed.
 
If you identify any of the above that are classified as high priority mistakes on your credit report than you want to contact the appropriate bureau with a form for each error.  Before mailing these letters send no more than two at a time to the credit bureau that has the error. Sent the highest priority mistakes first as they will make the most difference. You want to send the letter with a copy of the document supporting your claim, like bank statements or cashed checks or credit card statements with limits. You also want to enclose a copy of the credit bureaus mistake. NEVER send originals!! ALWAYS send copies and keep the originals for your records. Be sure and send the letters via certified mail with return receipt to verify that they received it. Retain a copy of the receipt from the post office and attach to your records for that mailing and attached the return receipt once you receive it. If for some reason you do not hear back from the credit bureau after 45 days resend everything. If another 45 days goes by and you still do not receive verification of correction or a reply getting a lawyer to draft the letter on company letter head can be more effective.
 
Remember, your finance specialist can help you with this when you get into one of our homes.

Dedicated to improving your credit and making you a home owner,

Lori

Swiftcurrent Investment Group, LLC

EZQualDreamHomes.com