Article Sphere Logo

How to Build Credit for the House You Want

By Expert Author: Lee Keadle | Article Abstract
Word Count: 448 words | Views: 397 view(s)
As real estate agents, we get a lot of questions about financing a home. With the credit crunch that we’re seeing right now with home loans, I wanted to write just briefly about how buyers can build credit before they buy. If you know that you’ll be buying a home in the near future, you may as well take advantage of the time you have to work on building credit.

Two things are very important when building credit. First, you need to have a high limit and a low balance. The more you have of this combination, the better your score. Second, you need to make your payments on time. These two things will build a credit score in no time.

For example, we worked with a lady recently and recommended that she speak with a lender. She had a credit score in the low 500s and needed to boost it before she could buy the kind of home that she wanted. Her credit report showed that she had not paid a few things. She actually had paid these things, but the creditor did not update the report to show that she had paid in full. So, her loan officer made two corrections in her report showing that she had paid what she in fact had. Doing this changed her ratio of credit limit to amount owed (in other words, her true balance). Correcting this amount owed increased her credit score more than 100 points in about a week. That’s about as quick of a change in credit score that you can hope for!

Another way to improve credit is to open a line of credit but only borrowing a small amount. And, be sure to pay it off. One way to do this is to get a prepaid credit card and use it to get gas, groceries, etc. – whatever you’re going to buy anyway on a regular basis. If you do this for a year, it will show that you’ve paid as agreed. The longer you do that, the better your score. The prepayment on the credit card is actually a deposit. So, you’ll get that money back at the end and have a true line of credit.

People who have had troubled credit in the past (bankruptcies, foreclosures) get scared of credit. So, they don’t actively pursue credit or make big efforts to rebuild their credit profile. It’s important to talk with your home loan officer before you buy. He or she can help you build credit and get the house you really want.
Lee Keadle

About the Author/Author Bio

Buyers can search for Charleston SC homes for sale on our website, which includes the most popular areas, Mount Pleasant SC homes and Summerville SC homes!

Article Source: http://www.articlesphere.com/Article/How-to-Build-Credit-for-the-House-You-Want/172078

Article Submitted: 2008-12-29 | This Article has been viewed 397 times.

Rate Article

Related Videos

Moving to Canada: financial advice
Learn about Credit - Building Credit Part 1
Learn about Credit - Building Credit Part 2
Building Good Credit
How to Create a Web Operating System Today
 

More "Credit" Related Articles

 
 

Listed below are more articles related to the above article from the "Credit" article category.

People interested in the above article "How to Build Credit for the House You Want" are also interested in the related articles listed below:

 
Have you always dreamed of running your own business, being your own boss, setting your own schedule? If so, then perhaps your dreams have been stifled by the lack of funding to get started. If you have a good business idea, then the government is willing to help out with government grants for new businesses.
When a creditor is unwilling to work with a settlement company try and convince them for a settlement yourself. Offer an amount that you can afford and that which you are comfortable paying.
Free-Credit-Reports.com: Get 3-in-1 FREE credit report and credit score online instantly. See your credit report from Equifax, Experian and TransUnion.
The significance of the credit reports have augmented to such an extent that for each and every step in the financial world today your credit records will be necessary. It has become almost necessary for everyone to be aware of his credit scores. In that case, do you think that it would be easy for one to visit the credit record bureaus and keep collecting information? That will be impossible as that costs wastage of time and also money.
Entrepreneurs typically make one or more financially devastating mistakes when financing the launch, operation and/or growth of their businesses. In most cases, they don't realize that they're making a mistake.
Everyone needs a little extra cash during the Christmas shopping season. If you have bad credit, it may be difficult to find a funding source that will allow you to borrow what you need to buy gifts and other things for the holidays. There are online lenders, however, that specialize in loaning money to those with less than perfect credits to make your holidays more joyful.
As members of National Security and Defense, you may be called to duty at any moment and this means less people at home to take care of bills, which can be quite numerous at times. Besides, you don't have the "liberty" that civilians have, to look for a better job or maybe extra hours to improve your income. Therefore, there are loans tailored specially for the military, considering your situation.
 
Article Directory Home All Categories Finance Credit
 

Can't find what you're looking for? Try Google Search!
 
Copyright © 2005 - by Larry Lim, Singapore - Article Search Engine Directory at ArticleSphere.com™
All Rights Reserved Worldwide. All Trademarks and Servicemarks are the property of the respective owners.

Afrikaans Albanian Arabic Belarusian Bulgarian Catalan Chinese (Simplified) Chinese (Traditional) Croatian Czech Danish German English Estonian Filipino Finnish French Galician Greek Hebrew Hindi Hungarian Icelandic Indonesian Irish Italiano Japanese Korean Latvian Lithuanian Macedonian Malay Maltese Dutch Norwegian Persian Polish Portuguese Romanian Russian Serbian Slovak Slovenian Spanish Swahili Swedish Thai Turkish Ukrainian Vietnamese Welsh Yiddish