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October 4, 2020

Credit Fixes to Help You Get a Mortgage

By Jessica

Bad credit makes it difficult to get a mortgage so you can purchase a home.

You can, however, get a mortgage with bad credit by improving that credit score quickly.

There are several steps you can take to improve your credit score fast:

Pay your bills on time. This may seem obvious, but if you make sure no more bills of yours are 30 days late, you are on the way to improving your credit score. Just one year of on-time payments will help you get a mortgage with bad credit.

Pay down your revolving credit accounts. Getting your credit card balances below 30% will have a big impact on your credit score. Do not, however, pay your credit cards off or close those accounts. You need to show that you have access to credit, but don’t need to use it all.

credit score improvementNurture your oldest credit accounts as a positive and long credit history will improve your score. If you have old credit cards with a positive history that you haven’t used in a while, use them again so that your history will be updated with the credit bureau.

Dispute any negative history. A disagreement with an old phone or store account can result in a collections item on your credit history.

The good news is that after several years pass, you can dispute the charge as unjust or not valid. Collection companies are seldom able to verify these old accounts due to mergers and lost files and will have to remove them from your credit history.

Make sure your credit card limits are reported properly. Make sure that the credit card company is reporting your credit limit properly. For example, if your credit limit is $1000.00 and your limited is reported as $500.00 it will look as if you are close to maxing out your credit card when you are not.

Ask your creditors for a favor. If you have a good working relationship with a lender or debt account, ask them to adjust what they have reported to the credit reporting companies. They may erase one pay payment, or re-age an account in arrears to remove delinquent history, helping you to get a mortgage with your previously bad credit.