Need Credit Builder

suga5 · 02-27-2008, 07:49 PM

Hello Everyone,

I need some advice I am trying to get into buying and rehabbing homes and i have to have a Equifax credit score of 625 to get the loan i need to do it, right now my score is 600 at Equifax what can i do to make this happen soon. I have been working on my credit and have improved my scores on all three bureaus. when i started i had low scores in the 400 and now i am in the high 500 low 600. Please respond soon and thanks.

Hedwig · 02-27-2008, 08:09 PM

How many accounts do you have? How old are they?

Do you have a mixture of credit types?

What percentage of your credit limit are you using?

centex · 02-27-2008, 08:15 PM

Buying and rehabbing sounds like flipping...and in the current climate, my guess is that banks are going to start getting far more stringent on underwriting such loans.

That being said, if you have a lender that is really set to go with only a 625, then the answers provided for Hedwig's questions will go far in determining what can be done to gain the 25 points.

suga5 · 02-27-2008, 08:27 PM

How many accounts do you have? How old are they?
Dont understand your ? about account do you mean open account, closed accounts, or what kind of account

Do you have a mixture of credit types?
I have 2 credit cards total and 1 on its way. I have a finger hut account.

What percentage of your credit limit are you using?
My credit utilization is 40 to 45 percent. maybe if i lower it to around 10 percent, my scores might go up a little bit

suga5 · 02-27-2008, 08:30 PM

Buying and rehabbing sounds like flipping...and in the current climate, my guess is that banks are going to start getting far more stringent on underwriting such loans.

That being said, if you have a lender that is really set to go with only a 625, then the answers provided for Hedwig's questions will go far in determining what can be done to gain the 25 points.

NO this is a "Hard money loan" not a conventional bank loan

centex · 02-27-2008, 08:50 PM

The lack of significant tradelines is hurting, but to try and open new ones right now will hurt more due to the loss of points on inquiry and lowered average age...

You should be able to pick up the 25 points if you pay down the accounts you currently have...I have seen the best scores with single-digit utilization. You may also see an increase if you reduce the number of accounts with a balance...my score is marginally better when I keep the balances reporting on fewer than 8 of the nearly 30 open revolving accounts. If it gets into double digits, I see a loss of about 20 points.

You may also be getting hurt more than you are being helped by the Fingerhut account...

suga5 · 02-27-2008, 09:02 PM

Quote:

Originally Posted by centex

The lack of significant tradelines is hurting, but to try and open new ones right now will hurt more due to the loss of points on inquiry and lowered average age...

You should be able to pick up the 25 points if you pay down the accounts you currently have...I have seen the best scores with single-digit utilization. You may also see an increase if you reduce the number of accounts with a balance...my score is marginally better when I keep the balances reporting on fewer than 8 of the nearly 30 open revolving accounts. If it gets into double digits, I see a loss of about 20 points.

You may also be getting hurt more than you are being helped by the Fingerhut account...

Thanks, but how is the fingerhut account hurting me they are reporting good credit to all 3 bureaus?

centex · 02-27-2008, 10:02 PM

Quote:

Originally Posted by suga5

Thanks, but how is the fingerhut account hurting me they are reporting good credit to all 3 bureaus?

In the same manner as finance companies can be listed as a potential drag on scores...

Hedwig · 02-27-2008, 10:31 PM

The most immediate thing you can do is pay the balances down, as Centex said, and get your utilization down.

Open accounts are counted for ratios and length of history. That's why I always advise not closing an account you don't want, but rather keep it open and use it occasionally. Unless it has annual fees that are killing you, of course.

The better your mix of types of accounts, the better. If your cards are all Visa/MC/AMEX type cards, getting a store card will help in the long run. But it would lower your scores initially as it shortens your history.

An installment account, like a mortgage or auto loan, also helps the mix.

But if you need something quickly and only need 25 points, I think paying your balances is the fastest way.

After you get the loan you need, consider some of the other suggestions.

suga5 · 02-27-2008, 11:25 PM

thanks everyone i will pay the balances down on my cards.

apexcrsrvc · 03-05-2008, 02:13 AM

Okay, I'm self promoting but, adding a few "seasoned" accounts would do the trick. I'll presume you know how that's done. See if you have any relatives that would do it. If not, companies will but, be diligent in who you go to.

It would get you more than 25 points too.

suga5 · 03-05-2008, 04:26 AM

Quote:

Originally Posted by apexcrsrvc

Okay, I'm self promoting but, adding a few "seasoned" accounts would do the trick. I'll presume you know how that's done. See if you have any relatives that would do it. If not, companies will but, be diligent in who you go to.

It would get you more than 25 points too.

Hi can you give some reliable companys names where i can purchase some "seasoned" account, i really would appreciate it.

Hedwig · 03-05-2008, 01:19 PM

Apex is in that business. Check out his web site--the link is in his signature.

apexcrsrvc · 03-05-2008, 01:25 PM

Thanks Hedwig . . .