How To Improve Your Credit Score Today So You Can Get A Home Mortgage
Hello everybody this is Mark Schreier from century 21 American Homes and today I’m going to be discussing a very important topic for particularly first-time homebuyers but even for people who might be looking to move up to a larger house scale up and they have to get involved the banks which means they need to secure themselves mortgage so the topic is how to improve their credit score today so you can get a home mortgage and we have a special guest Aman Verma from Secured Credit Advisors and he’s gonna introduce himself a little more and a little more about his company and before he does that I just want to say I met Aman and I thought it was a great service because I meet a lot of people particularly first-time homebuyers that want to buy a house but when they go to get pre-approved for a mortgage they’re not credit worthy and if you could avoid that before it will save you a lot of aggravation and be able to get that house much sooner so Aman tell us a little about yourself in your company well thank you Mark I appreciate this opportunity my company marks that have secured Credit Advisors we help people fix their credit when I say that is I mean as we help remove all negative items off their report lateness is bankruptcies judgments collection accounts you name it we get it off we provide a hundred percent money-back guarantee to all our clients and it’s a process if somebody tells you so quick process is not going to happen it takes time it’s a legal process it definitely takes time to do so I would advise anybody that’s looking to purchase a home and get you know mortgage if to start this in advance don’t wait till last minute and at least you want to give this about a year years worth of time a year and a half worth of time in order to get where you need to be to get the ideals credit score to get your ideal mortgage rate great we’re gonna dive into this in a little more detail but first I want to do a little basic housekeeping if you’re new to the channel definitely remember to subscribe and hit the notification bell on the side so you get all the videos that I produce on a weekly basis sent directly to your inbox and also like it hopefully you will and share it to somebody that you think might have they need for this type of information the name of the channel is real estate 101 all things you need to know about buying and selling residential real estate comes to you directly on a weekly basis so with that being said what are things that somebody again whether it’s a first-time homebuyer or somebody that is looking to scale up can do and what give a little more info about the time frame six months three months before your credit score will start reflecting changes in a positive way sure so starting off with that question itself the process look the credit bureaus have about 45 days and they push it to 60 days at times also by sending in generic response to a dispute we send out saying we have started an investigation process what it allows them to add in 15 days to make it a 60 day process that being said you would within 45 days you start seeing results when we start to work but to give a significant change I would say at least a 90 day mark an average credit repair file what would be about six to eight months but we keep the balances low sorry during the process I needed some time to lower his balances on his credit cards those are vital things so we stay about at least a year’s time to get your credit completely cleaned up your credit score alright so 90 days to see the change a year would be the start thinking a year in advance and that’s a great time too because most people start shopping for a house about 18 months out so start that process of checking your credit score as well and one thing I’ve learned from you Aman is if your credit score is good or you’re trying to move it in that right direction don’t go out and buy or lease a car where you’re taking out a loan in the middle of it because that can throw like a monkey wrench into the whole thing correct hundred percent I have a couple of different tips I want to advise you everyone number one first most important thing is always always always monitor credit you know what’s going on your bank account you know what’s going on the investment but the usual what’s going on your credit you need to once a year you’re allowed to get up and your credit report from annualcreditreport.com go there it’s a free credit report it’s not a hard agree it doesn’t affect your score besides that sign up for Credit Karma to allow you to see the summary of your credit on what’s going on to see if there’s any trade lines there’s a lot of services out there that allow you to monitor to your credit it’s vital it’s very important every three months I would advise you to just go online get a credit report you need a soft free credit report so it doesn’t hurt your credit and just see what’s going on okay another thing that I’m sitting down and having a conversation with them on before this video I always was under the impression and I know you get you’re allowed a free credit report once a year from all of the three credit agencies that’s what I was doing but then I’m on told me you really want to get a basically a average or the three combined and I believe that you said that annual credit report.com combines all three of them is that yes the reason why I marked that’s a great question the reason why is the credit bureaus are private entities they don’t speak to one another of what we reported at what’s not reported and it costs a creditor or somebody who’s quite a reporting on your credit bureau – it cost them money to do it so they might not report to all three bureaus they might report to one bureau and let’s say if you’re only checking TransUnion the transUnion scores could be 700s but Equifax score on your Experion score could be lower because there are reporting that new collection on there so it’s vital to check all three bureaus and you can get a consent or instead a combined report that allows you to see all three reports and all three scores and all the interview on one report and it makes it so much easier you can compute compare it line by line of who’s reporting what and how your credit score to be inflected with that so basically you’re being proactive rather than reactive those important thing when buying a house if you’re talking about leasing a car or getting any type of loan your credit is key and knowing what you have going into any transaction is definitely a plus on that note what is for you or for mortgage people what is considered the best score what should people be trying to get their credit score to and what would be considered a not-so-good credit score that you could have a lot of problems anything under 630, 640 it’s gonna be having new problems you’re not only a great rate not a competitive rate above 725 you’ll will be tier 1, 750 above obviously it’s no you touch it you get it basically but there’s a lot of factors that go into that not everybody can achieve a 750 right away because it’s not that they don’t have on the credit score enough credit history but it’s a big mark also so it takes time it takes time to get there to the 800, 750 scores areas so it’s nothing oh I have a 735 or 740 I might have that oh you’re not being bad you’re fine it just takes time to build history so very good so it takes time for history a year ahead would be a good time to start improving your score definitely start checking your score just to go over everything points we’ve discussed and on the building credit first-time homebuyers a lot of them are right out of college my son took out a credit card college credit cards and I’m trying to teach him and he’s starting to teach me now how he’s building his credit a lot of people are against taking out or having day okay and my question to you is if you teach your kids zero debt zero debt don’t get a credit card is that a problematic thing some people say use your debit card you know and that will show a history use your like if they were to get an apartment they get a phone bill they get a an electric bill does that help build your credit or is that not correct information so a couple things forms of that now debit card will definitely not reflect on your credit score that having a utility bill it doesn’t it doesn’t hurt you but doesn’t really help you because utility bills cell phone bills these won’t report as positive credit right they report only what you do something negative so if you know there’s a payment it’s gonna report on the credit report so it won’t hurt you to have that but and it does help you in the look access that you are building credit but then are reporting anything positively balanced is why if you’re trying to build your credit I always recommend it’s important to keep a low balance on there 10% and 20% just to reflect that you are usually a credit because the credit bureaus they get every cycle which is about 30 days a score basic reporting that gives you any latenesses and your balances so if your balance is up in 70% or 80% limit and it reflects bad if there’s a balance of zero and you’re trying to build credit it shows that they usually credit at all so you’re not good you’re not you’re not using a credit than that we need to you know keep your high score you’ll get a high score little bit well but there won’t be the highest potential score you can get so if you leave a 10- 20% balance they’re using they’re seeing that you are a good financial risk you know how to maintain your credit you know how to maintain debt and you’re not causing problems where you’re at the high maximum limits and your keeping low balance so that’s good if you keep a 10% 20% thank you more balance and I’m trying to be quick I don’t want to go too long in this video but multiple credit cards versus one credit card just which about 4 or 5 credit cards maybe 3 bank cards and 1 or 2 store cards that you like to do those are great couple more things I want to go into real quick shortly about home buyers set up auto payments on your credit cards but those set up on the due date set up a week beforehand so incase they monitor of making sure the payment comes up because I’ve had oh I am Auto payment set up the payment didn’t come out and I got hit with a lateness you said up a week before you have a week’s time to catch it up in case the auto payment go through any reason I’m gonna keep low balances as vital people what they like to do is oh they’re getting approved for house they’re go shopping let me go to get a new couch let me get this furniture that for no I don’t care what the situation , sale is, wait till the keys are in your head a document of sign then go shopping, right all right sorry don’t add any trade lines I don’t care if Macys having up 90 percent while you’re mortgage process don’t add any trade lines it’s what everybody don’t Oh don’t add any new credit card for loans or anything that’s not yeah yes at the last most importantly secure your credit form identity theft identity theft is huge nowadays your identity stolen very quickly your social security numbers everywhere anywhere just my credit and make sure we proactive not reactive exact that would that should be the title of this be proactive not reactive on your credit I want to thank you Aman I’m going to be putting a link to a Amans website in the description of this and one other thing I want to say is also know yourself because if you’re opening up all these credit cards and you have a history of spending spending spending that might not be the best way for you to you go to go about it and thanks again this is Mark Schreier from Century 21 American Homes and thanks for watching hello yes I’m talking to you the person that watched my video to the very end thanks a lot for watching if you enjoyed it please give me a big thumbs up subscribe to my youtube channel like me on Facebook I am a licensed real estate agent in New York State but I also have a referral service that deals nationwide so if you’re looking for to buy or sell a house anywhere in the United States please send me a text contact me via phone and I’ll set you up with a local professional in your area if you’re in my vicinity I’d be more than happy to help you out in any of your real estate transactions that you’d like this is Mark Schreier from century 21 American Homes and I’ll talk to you soon
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