Fastest and Easiest Way To Increase Credit Scores

This guide covers the fastest and easiest way to increase credit scores to get the best mortgage rates. We get countless calls from our viewers at Gustan Cho Associates asking about the fastest and easiest way to increase credit scores. Credit scores fluctuate depending on the activity on consumer credit reports. The team at Gustan Cho Associates has helped tens of thousands of borrowers increase their credit scores and strengthen their credit profiles.

You do not need a credit repair company to seek the fastest and easiest way to increase credit scores. Actually, credit repair companies are often a waste of money.

Whatever a credit repair company can do, you can do it yourself without wasting time. Older derogatory credit tradelines, two years or older, have little to no impact on your credit scores. Mortgage lenders will not hit you for a loan level pricing adjustment on prior bad credit. Before bankruptcy, foreclosure, or a deed-in-lieu of foreclosure, a short sale has no impact on your mortgage rates. Prior bankruptcy, foreclosure, deed-in-lieu of foreclosure, or a short sale has no impact on credit scores if the bankruptcy or housing event has been seasoned for over 18 months.

Steps Leading To The Fastest and Easiest Way To Increase Credit Scores

In this article, we will discuss and explain to our viewers at Gustan Cho Associates how to boost your credit scores and reestablish your credit. Higher credit scores mean you can qualify for any mortgage program you want. Higher credit scores mean lower mortgage rates. Higher credit scores mean lower insurance premiums. The first step to the fastest and easiest way to increase credit scores is by taking the following steps: Get a copy of your credit report from Experian, Equifax, or Transunion.

Identify all negative credit items on your credit report and any errors. Dispute all of the negative credit tradelines on your credit report that are valid and you have proof. Ensure you have proper documentation and facts to provide to the credit bureaus. Pay all your credit card balances to a 10% credit utilization ratio.

Contact the creditors reporting errors or negative tradelines on your credit report. If the errors are incorrect, ask the creditors to remove the errors from your credit report. If the outstanding collections or charged-off accounts are valid, see if they will take pay to delete them. Pay for delete means agreeing to a certain amount of money to settle the date, but in return, the creditor will delete the negative item off your credit report. Remember that you do not need to pay outstanding collections or charged-off accounts to qualify for a home mortgage.

Fastest and Easiest Way To Increase Credit Scores: The Power of Secured Credit Cards

Secured credit cards are the fastest and easiest way to increase credit scores and rebuild your credit after periods of bad credit, bankruptcy, or foreclosure. Getting secured credit cards works exactly like getting unsecured credit cards. The only difference is the consumer needs to deposit the amount of the credit card limit. The credit card provider will then issue a credit limit to the credit card holder for the amount of the deposit.

The team at Gustan Cho Associates are experts in helping consumers maximize their credit scores in a very short period. Gustan Cho Associates can teach consumers to get a credit score over 700 FICO just a year after bankruptcy.

As the secured card ages and the consumer is timely on payments, the secured credit card company will increase the credit card limit without asking for an additional deposit. Once the secured credit cardholder has had their cards seasoned for over a year, they can qualify for unsecured credit cards. For example, if a consumer wants a $1,000 secured credit card limit, they must make a $1,000 deposit with the credit card provider.

Secured Versus Unsecured Credit Cards

Secured credit card companies will report the cardholder payment history to the three credit reporting agencies. Late payments will be reported as well. The secured credit cardholder needs to make timely minimum payments. After six to twelve months, the secured credit card company will review the cardholder’s payment history and patterns.

If the credit card company feels the cardholder is financially responsible, they will increase the card limit for the secured cardholder without asking for an additional deposit. The ideal number of secured credit cards after bankruptcy, foreclosure, deed-in-lieu of bankruptcy, or a short sale is three to five secured credit cards with at least $500 credit limits. Each secured credit card can boost a consumer’s credit score by 20 to 50 points after bankruptcy, foreclosure, deed-in-lieu of foreclosure, or short sale. As the secured credit card ages, the borrower’s credit profile will become stronger, and their credit scores will increase.

Reestablishing Credit Profile After Bankruptcy

Bankruptcy is a great tool to use for consumers who are drowning in debt. Other reasons for filing bankruptcy are divorce, a failed business venture, being a victim of a crime or fraud, an extended period of unemployment, medical reasons, and other personal issues. Bankruptcy allows consumers to get a fresh financial start. Most debts can be discharged in bankruptcy. How would you like a fresh financial start in life without any debt? Homebuyers can qualify for a mortgage after bankruptcy. However, bankruptcy will plummet consumer credit scores by 100 to 200 points—no need to worry.

The team at Gustan Cho Associates can help people who filed for bankruptcy get their credit scores over 700 in less than a year and prepare them to qualify for a home mortgage. The first thing you need to do after bankruptcy discharge is to get three to five secured credit cards.

Besides three to five secured credit cards, we recommend consumers get an installment credit rebuilder account through www.self.inc. Do not hire a credit repair company. You do not need a credit repair company to reestablish your credit. Do not worry about deleting old derogatory credit tradelines. Any derogatory credit tradelines, including bankruptcy or foreclosure, that are two years old or older, will not impact your credit scores. In this article, we will discuss the fastest and easiest way to increase credit scores to get the best rates.

Check For Errors on Credit Reports That Can Affect Your Credit Scores

Credit bureaus do make mistakes. Always monitor and review your credit reports for errors. There are many instances where you get secured credit cards to improve and reestablish your credit scores. The secured credit card company will report to the three credit bureaus: Experian, Equifax, and Transunion.

Equifax may be reporting the positive credit tradeline, and Experian and Transunion may not be reporting it. This is not good for you. The purpose of having secured credit cards is so they report to all three credit bureaus.

First, you need to let the credit card company know about this error. Then, please wait for the results of their investigation. If after 30 days there is no result, file a credit dispute with both the credit bureaus and the creditor simultaneously to correct the error of not reporting your payment history.

Contact Information of The Three Major Credit Bureaus

Here is the contact information for the three credit reporting agencies:

Transunion

• TransUnion LLC Consumer Dispute Center
• P.O. Box 2000, Chester, PA 19016
• Tips for filing a Transunion dispute online
• Phone: 800-916-8800, 8 a.m.–11 pm EST

Experian Dispute

• Experian: (714) 830-7000, 9 a.m.–5 p.m. EST
• P.O. Box 4500 Allen, TX 75013
• Tips for filing an  Experian dispute Online

Equifax

• Toll-free (800) 846-5279, 8 a.m.–5 pm EST
• Equifax Information Services LLC P.O. Box 740256 Atlanta, GA 3037
• Tips for disputing your Equifax credit report online

Consumer credit scores are calculated using an algorithm created by FICO

How Creditors And Lenders Grade Credit Scores

Nobody has a crystal ball. A person can have had the best credit payment history in the past 20 years and have the highest credit scores but can lose their job, and their credit scores can tank. However, lenders use the past payment history and the borrower’s credit scores to price out mortgage rates.

How Lenders View Credit Scores 

The higher the credit scores, The fewer risks lenders will assume they have, The lower the risk, the lower the credit score. Here is how creditors and lenders grade borrowers’ credit scores:

• Any borrowers with credit scores higher than 720 FICO are considered to have excellent credit
• A borrower with credit scores between 680 and 719 is considered to have an above-average credit score.
• A borrower with a credit score between 640 and 679 FICO has a good credit score.
• A borrower with credit scores between 620 and 639 FICO has a fair credit score.
• A poor credit score is anything lower than 620 FICO.

Homebuyers with credit scores as low as 500 FICO can qualify for an FHA loan at Gustan Cho Associates. The VA does not have a minimum credit score requirement with an approve/eligible per automated underwriting system approval (AUS). Gustan Cho Associates is a five-star national company licensed in multiple states with no lender overlays on government or conventional loans. If you need to qualify for a home mortgage with a lender with no lender overlays on government and conventional loans, you can contact us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com. The team at Gustan Cho Associates is available seven days a week, evenings, weekends, and holidays.