Credit Repair and Building Your Fico Score to Buy a Home

Hello Everyone,

Clients and Customers ask me all the time “what can I do to build my credit.”

Banks are looking for 3 lines of open credit for a min. of one year. This could be three credit cards, school loans, auto loans, other types of loans, or any type of item where they report to the credit reporting agencies.

Most people after having a hardship have little to no credit lines on there reports. Why, people close there credit cards to keep them selves from getting in more trouble with money. This is not always a good thing. It is harder to get credit cards when you don’t have any of them.

When you have 3 lines of credit open you will see your credit score climb some what fast. You still may take a hit if you go around trying to open lines of credit at 100 places and get turned down from them. These hard inquires on your credit report can hurt your score.

What I have done it come up with a few companies that you can get credit from.

1.) Matrix Discover card- For the most part they don’t even pull your credit score other then to find out your still alive. They will give almost every one a credit card for with a 300 credit limit on the card. This is an unsecured card. Based on your credit they may charge you a set up fee that would be put onto the card. If you credit is a little better they will wave that fee.

Ok, how do you get the card. You can go online to there website at http://www.matrixcardinfo.com or call them at 1-866-449-4514. I have found that they are not the most customer friendly on the phone but they will help you get the card.

2.) Merrick Bank Visa – This is a nice card for every one. They will start your credit line at 600.00 or less and after you have the card for one year they will double your credit line. I have not found they they charge any one any kind of crazy set up fee’s or monthly fees. They just want you to use the card and pay it off.

Next how can you get this card. Well go to http://MerrickBank.com and apply for it or call them on the phone at 1-800-253-2322

3.) Capital One Master Card –  This card is not your normal Capital One card it’s for people with less then perfect or no credit. You will need to go online to http://capitalone.com. Once there your going to have to click on the credit card link. Then your doing to have to click on   “See if you’re pre-qualified for a card now” or go to this webpage https://findmycard.capitalone.com/PageVersions/LandingPages/LP_UNS_MS_V04.aspx

Fill in the information they ask for and then they will give you the cards that you can apply for. The Capital One Platinum Card is a gray and white card. This is for those that are looking to build credit. If your credit is toasted they will ask you to make a 200.00 deposit into an account with them and then they will give you 100.00 line of credit for a total of a 300.00 credit line. If your credit is low or you have none they will normally just give you a 300.00 credit line with out a deposit account.  Or you can call them at 1-800-955-7070

4.) Orchard Bank MasterCard – This is the last card I have to recommend to customers and clients that I know is a good way to build credit. They will give you a 300.00 unsecured sometimes they charge a start up fee and other times they don’t. If your credit is toasted they will ask you to deposit 249.00 into an account and then they will give you a 350.00 credit line. Orchard Bank Credit Cards are owned by HSBC Bank. HSBC Bank has recently sold there credit card line to Capitol One. So just a heads up that they may send you a new card at some point with the Capital One name on it.

So for every one looking to build there credit back up or to make a credit score that has none. Above is the list that I tell every one about. Open 3 of them and in a short period of time you will see your score go up.

I had a client that came to me with a 480 credit score she had worked with some credit repair places in the past but could not get the score over 480. I helped her like I am you with my information. She opened 3 credit cards up one or two made her put a deposit in due to the credit score. In 6 months she had a 654 credit score.

Things to remember, to get the best credit score possible you need to use the credit card the first month carry the balance till they bill you. Then pay it off and never go over 30% of the credit cards line of credit. So if you have a 300.00 credit line do not ever put more then 90.00 on the card. This will get you the best score from the card. If you go over 30% you don’t get as good of a boost to your credit score and if you go over 50% it will hurt your credit score.

Little hint before I end. Your first month when you get a bill. Look at the due date. This is normally the 15th of the month.  Write that date down and never forget it. Here is a trick for using the credit card. If you need to use it let’s say your car breaks down. You do to the shop and have your car fixed and they put 180 dollars on your card. this takes you over your 30% and over your 50% credit line. This will hurt your score. But wait there more. If you go online 5 days prior to the billing date of the 15th and make a payment (remember billing date not due date) and pay it down online to 89.00 now your going to be under 30% when the bill is printed that is the number going to the credit reporting companies. Then you can make payments on the other 89.00 or pay it off when you get the bill. Just so that you have the payment in online 5 days prior to the statement date. Your statement will show less then 30% used on your line and this will give you the best score on the card.

 

For more information stop by http://stormteamrealestate.com

If your looking to buy or sell a home call us at 717-735-6284