You don’t have to have stellar credit to get a good home loan, but the better it is the more money you will keep in your pocket!
Watch my video to learn how your credit is weighted, and how you can make a plan to get your credit scores higher.
There are many methods to helping you pay down your debt, and each individual needs to take an honest look at their finances. You must know what you are spending, where your money is going, and what is on your credit report. Put your expenses into categories.
- Find out where you spend the most, and start making adjustments. If your biggest bill, other than your rent, is food…learn how to shop in bulk and cook at home. Chart your savings and add that up at the end of the month. Use that savings to pay extra on your debts. This can add up to thousands at the end of the year.
- List your debts according to interest rates, not balances, and pay the highest rated card off first. Once this high interest card is paid off, roll over that monthly payment into the next on the list (in addition to your regular monthly payment of that card). Keep doing this and soon you will be making a huge payment on each card, and paying off much faster.
- Once you pay a card off…don’t close the account! You want credit on your report for paying that balance down to zero. The credit card companies still have to report to credit bureaus and this looks favorable on your report.
- Consider calling all of your credit cards and asking them to increase your limit. Do not use it…just use this adjustment to make your debt-to-income ratio look better. You want about a 30% ratio for best results
- Always pay on time! Paying on time has the biggest weight on your credit score.
- If you have no credit, get some! Apply for some department store credit lines. Use the card and pay off within 2 months. This will give you a positive report, and help build a history for you. Research credit cards and open lines of credit that report to the credit bureaus TWICE a month, and pay that card TWICE a month. This is a way to really make your points shoot up, as you are able to get twice the positive reports coming in to your credit. This can help in a hurry!
- Stop spending Money! No big purchases, eat at home, shop wisely, cut out wants and focus on needs, and learn to spend time…not money.
Soon you will find that you will have pride in your decisions, you will have a steady goal to work towards, you will spend more time with your loved ones…and soon…you will be a HOME OWNER!
Every story is different, and I’m always here to help. Let’s talk today, and get you started down a path of home ownership!