Pay Down, Pay Down, Pay Down your balances, See aboveâ€¦30% is max you should use on cards.
Another way to the spread on your card is to request a credit limit increase so you have to layout less cash to make the 30% limit. BUT, and this is the biggie, Do Not USE your New CREDIT Limit. Keep it open.
Joel Lobb (NMLS#57916)
Senior Loan Officer
Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*
The above strategy works.... And is not some scam.
Removing the medical collections will help you the MOST.
Are you married? Can a spouse add you to a credit card they have?
(214) 763-4629 cell/text/nights/weekends(Really!!)
Lending all across the entire Great State of Texas!!
Search Dallas area MLS for FREE. No registration => http://www.ntreisinnovia.net/cgi-ntr/BR_login?0501134
Your score will probably not rise that much in 6 months without some aggressive action on your part. I would open at least 2 revolving accounts, keep the balances less than 25% of the limit on the card, that means EXACTLY what I said, never go above 25% of the limit on the card even if you pay it off every month.
I linked below to a page on my site that shows how to handle collections, the little book mentioned at the bottom of the page is something I prepared for my clients, sounds like it will help you as well.
NMLS # 6395
Financing Kentucky One Home at a Time
Once you find a bank who can do this you will need to deposit money in a CD with them most likely. This will be your credit line. I would recommend doing at least $1000 for this. You can always get the money back and close the account if necessary.
Once you do this the next step is just as important. Never, ever, ever charge over 30 to 40% of your available credit in any given month. You do not, I repeat, you do not have to pay it off in full every month but always keep the balance below 40%. Ideally in your case I would recommend not going over 30 to 35%. The benefit if paying it off in full will be the elimination of financing charges which is a very good thing but it won't help your credit. When your credit is pulled it shows a snapshot in time. So even if you pay it off in full you will show whatever your current balance is.
There is a large portion of your credit score that is based on your revolving history and the percentage of credit utilized. The older your revolving accounts are the better. So never close this account. Eventually in a year or so you will be able to convert it over to a non-secured account.
If you do this and keep paying on all your accounts in a timely manner you will get a bump in your credit. You can also ask a friend or family member to add you to an established credit card they have. They don't (and shouldn't) give you the card. Just add y you as an authorized user. Make sure they do not have a large balance and pay the card on time or this option will not help and can actually hurt you. A nice older credit card with a zero balance and higher credit limit will definitely help your credit scores and add to your available revolving credit which lowers your total credit utilization and thus will improve your scores.
I hope this helps. Best of luck to you!
REALTORÂ® & Mortgage Broker
Austin Real Estate Pros | 360 Lending Group
office: 512.669.5599 mobile: 512.633.4157
websites: http://www.AustinListed.com | http://www.360LendingGroup.com
Best of Luck!
I suggest you talk to someone who does credit counceling to help you meet your goal of purchasing a home in six months. One company I have recently have come into contact with is Credit Nerds.
There is charge but it is not upfront and they are about helping improve your credit .. not do a quick removal job where the negitive credit issues come back in 30 days.
Call 877-614-6373 and start a credit audit with them to see if they are right for you. To get $50 off thier charges give them Code IRV-01.
Best of luck in you future home purchase ... Bruce