Author Topic: Advice Needed on Raising Credit Score  (Read 3084 times)

Hubbard521

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Advice Needed on Raising Credit Score
« on: January 11, 2013, 11:58:00 AM »
I'd like to get a loan to begin investing in real estate but first need to boost my credit score a bit.  I just checked my credit report on Credit Karma and it reported my score at 580.  Everything as far as payment history was great but I was given an F for number of credit inquiries.  I applied for a credit union earlier in the year and decided not to follow through but they apparently put in 7 inquiries on my credit which apparently knocked down my score quite a bit.

I've read several posts suggesting various cards or credit unions but I'm in a position where I really can't afford to have another non-worthwhile credit inquiry.

What would you all suggest as the best way to boost my credit relatively quickly so that I may take out a decent loan in the near future?

Thanks!

mindaugas

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Re: Advice Needed on Raising Credit Score
« Reply #1 on: January 11, 2013, 12:25:02 PM »
At 580 u have more than just inquiries. there are bad payments, write offs, or settlements somewhere in there. You need to pull your full credit report and get the history. If you had some bad stuff you took care of in the past you will need to dispute the items to try and get them removed. get your FICO score and report, that is what most mortgage companies use. Your "mortgage" score will be a lot different than others. IE on 580 you can buy a car, but not a house. (Even FHA requires at least 620 and less than 50% DTI).

To get a loan for investment real estate I think you will need a conventional with 5-20% down and probably a credit score above 740.

Hubbard521

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Re: Advice Needed on Raising Credit Score
« Reply #2 on: January 11, 2013, 02:20:32 PM »
Thanks for your response.  For the record, it would be a property that I would occupy as well.

According to the report I have no late or missing payments.  I think it's a combination of my not establishing much credit (i.e. never having a credit card, still being fairly young) and the 13 inquiries.  According to Credit Karma (does anyone have information on how credible the service is?) everything on my report had a grade of a B aside from my credit inquiries which were an F and thus brought my score down quite a bit.  I had previously been talking to a mortgage broker and was told that all I needed for a loan was a slight bump in credit that could be attained by opening up a credit card.  The reason behind the question was to find people recommendations on a card that would be both advantageous for me and leave me with little risk of not getting approved.  Or, if anyone knows of an alternative way to boost my credit that would also be very much appreciated.

DebtDerp

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Re: Advice Needed on Raising Credit Score
« Reply #3 on: January 11, 2013, 02:56:31 PM »
I would just suggest getting a no annual fee card through your bank. This way you can have it easily connected to your bank accounts which makes paying it off each month easy with a simple account transfer. This is the route I go and pay off my card each week.

The key is a card that won't charge you a fee and to ensure you pay if off so that you do not have to pay interest (which will probably be upwards of 25%).

kisserofsinners

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Re: Advice Needed on Raising Credit Score
« Reply #4 on: January 11, 2013, 03:07:46 PM »
Yea, if they put through inquiries around the same time it all counts as one inquiry. It's probably the lack of credit.

You can fix this with a prepaid CC as mentioned. Use it for reoccurring monthly cost and pay off every month. It's not enough to use it every now and again. Even a couple/few per month make a difference.

You can also buy something on credit, like a mattress or laptop. I'm sure plenty of people get uppity about spending in this way. However,to build your credit you have to pay to play. If you're looking into a new bed, computer, or other tools you would have bought anyway this choice is a reasonable sacrifice to get ahead. Note i said, "tools". If you're going into debt for it make sure it's a proper investment. This is not an excuse to buy a new home stereo, SUV, or musical instrument, unless you're gigging and making money from it.


mindaugas

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Re: Advice Needed on Raising Credit Score
« Reply #5 on: January 11, 2013, 05:33:12 PM »
creditkarma is just an estimate. Get your full credit report so you have accurate info an accurate score.

http://www.myfico.com/Guest_Home.aspx