Home Buying in Fort Worth>Question Details

bbaldevarona, Home Buyer in Keller, TX

talk to someone and he said that i need to open a unsecured credit card that is what is missing the revolving account. for our scores to go up.

Asked by bbaldevarona, Keller, TX Tue May 7, 2013

is there any truth to this?

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7
Good morning bbaldevarona,

We see many credit reports with low credit scores (anything less than 620), and often many scores in the 500's. This is BAD credit. If you are one of the folks affected by this terrible economy, you have a low credit score and you have a dream of buying a home, here's some simple advice for you.

It is unlikely you could be approved for mortgage financing with that credit score at this time.

Beware of any mortgage professionals promising you an approval with such a low score. Wait on buying a home. I recommend you take the time to resolve your credit issues.

First, settle any outstanding debt. If you owe money on collection accounts, charge-offs and/or judgments, make payment arrangements and get these accounts paid promptly.

Next, begin rebuilding your credit. If you have current accounts with good payment histories, or even some previous late-payment-blemishes, make sure you continue to pay those accounts on time. If you do not have any existing credit accounts then you'll need to establish several in order to create a viable credit history.

I have found that CONSUMER ACTION is an excellent resource for objective advice on all things credit related. You'll find free and sincere advice on everything from settling collection accounts to rebuilding credit to building credit from scratch on their website.
http://www.consumer-action.org/

Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams. Find more from the FTC HERE.
http://www.consumer.ftc.gov/articles/0058-credit-repair-how-…

The best way to buy a home is to have a decent credit history combined with sufficient Income and Assets for a home purchase.

The best way to have a decent credit history is to settle negative outstanding obligations and pay all your bills on time for at least two years.

Trevor Curran
NMLS #40140

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
1 vote Thank Flag Link Wed May 8, 2013
Revolving credit accounts effect your credit score substantially more than installment debts. The main reason is, any future extender of credit, knows what your fixed payment is but they can only guess how you much debt you could carry in any one month. Therefore a max'd credit card account could feasible lower someone's score by as much as 25-100 points. If your scores are stagnant, and haven't risen in a while, then there are some trick of the trade other than opening another account. You can read my article below or I would be happy to share these with you it you'd like. Please feel free to contact me.

Best of Luck!

http://www.trulia.com/blog/george_raymondo/2012/03/no_credit…
Web Reference: http://www.AFN-Loans.com
1 vote Thank Flag Link Tue May 7, 2013
Good morning
First, yes in some situations this can help. Whether this helps or hurts depends on your situation. I recommend that you sit down and go through your credit reports, start by looking for errors. This is the lowest hanging fruit and correcting errors can make a huge difference in score. Once you know where you stand then it is time to look at how you can raise your score based on your situation. As others have said there are a number of steps that can be taken to help your score but not every one works for every situation some may even hurt your score. You really should sit down with someone and go over the reports and look at the whole picture. I know in your other question that you said you were pre-qualified. I would be happy to sit down with you and help. I will not promise that we can get you qualified tomorrow, but I will promise to be honest with you and be there to help you through this. I wish you the best of luck!

John Straub
Keller Williams Realty
817-729-4281
john@dfwfamilyrealty.com

http://www.dfwfamilyrealty.com
0 votes Thank Flag Link Wed May 8, 2013
You might benefit from talking to an experienced Realtor who has helped many people get their credit scores up to the point where they can get approved for a loan. Forget the stories from friends and family who bought a house years ago. The rules have changed!

Do yourself a favor and give me a chance to provide you the guidance you need. There are some simple things that you can do which will make your credit report look good to an Underwriter. I am a Credit Repair Instructor with 33 years of experience at getting real estate loans approved. I do not charge for the consultation, and suggest that you will write your own letters so that it doesn't have to cost you anything.

Please contact me right away so we don't lose any more time reaching your goals. You'll be happy you did when you are moving into the house that you want!

Rick DeVoss

ULTRA Real Estate Services

817-300-6121

Direct: RickDeVoss@Realtor.com
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0 votes Thank Flag Link Tue May 7, 2013
No professional can render an opinion for fact we are not part of the conversation who provided you the recommendation. However revolving accts can increase your scores however using alternative credit could be another option WHICH some lender use.

Lynn911 Dallas Realtor & Consultant
Multimillion Dollar Sales Producer
972-699-9111
http://www.lynn911.com 100's of Dallas homes listed for sale or lease

Follow me on Facebook
http://www.facebook.com/lynn911dallas
0 votes Thank Flag Link Tue May 7, 2013
Yes, That is part of the crucial Rating in your credit score. What that will do is show the mortgage company or lender that you do have the responsibility of making payment on balances that you have and not being late and not having more than 30% of the total limit Of your credit extended. If you have good credit on other part of your score you may not need to get a revolving account .
0 votes Thank Flag Link Tue May 7, 2013
Yes, That is part of the crucial Rating in your credit score. What that will do is show the mortgage company or lender that you do have the responsibility of making payment on balances that you have and not being late and not having more than 30% of the total limit Of your credit extended. If you have good credit on other part of your score you may not need to get a revolving account .
0 votes Thank Flag Link Tue May 7, 2013
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