brittany, Other/Just Looking in 37203

I'm working with a lender to raise my credit score it is around 600. He recommended I get a credit card to raise my score. I really do not want

Asked by brittany, 37203 Fri Nov 8, 2013

to do I have student loans in a deferment , should I take them out of deferment and just wait a few more months for that to help my score? I also have older collections on my report so will it even help me to get to a 620?

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3
Bailie Rhea…, Agent, Brentwood, CA
Sun Nov 17, 2013
Hey Brittany,

If you would really like to find out an exact plan of what needs to be done.

We can work with you. I understand that a lot of these agents are saying to do this, that, and the other. However we are 100% dedicated to helping you and showing you an actual plan customized to your needs. Not a rigorous plan that you won’t be able to sustain.

Feel free to read our recommendations. (95% of our clients are long term credit clients)
I would love to help you.

615-400-8515

Feel free to call me at any-time. Let’s see if I can help you get a little bit closer towards your goal.

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0 votes
Maria Holland, Agent, Brentwood, TN
Fri Nov 8, 2013
Getting a credit card requires discipline. The key in getting a credit card is only charging a small amount on your card and then paying it off immediately so they report a zero balance. Paying off the credit card to a zero balance is what can raise your score. After you get your credit score up, close the card.

Paying off the student loans helps with your debt ratio, but taking them out of deferment could make your debt ratio so high that you don't qualify.

What you need is a lender that will help you remove the older collections off your report. That could mean paying off older collections. It could mean having the lender request they be removed. Make sure you are working with a lender who knows how to get your score up the right way.
0 votes
Dan Tabit, Agent, Issaquah, WA
Fri Nov 8, 2013
Brittany,
Our opinions here are going to be based on limited information. I've worked with several buyer's through many years in both Mortgage and Real Estate and the advice is not uncommon. It may be due to not having enough established trade lines. Or it could be due to needing to re-establish credit after a tough time. In either case, getting a card and using it in a limited responsible fashion will initially reduce your score, but in short order improve it.
Only use the card for expenses you would normally pay cash for and then pay it off monthly, things like gas & groceries. Don't treat it like "extra money." When you see your checking account in better shape than you might be used to seeing it, avoid the temptation to splurge on something.
Credit is like a muscle, it must be used to grow but not abused so it won't be strained or damage. New credit, within reason will be useful and may be necessary to get your scores where you need them.
If you are afraid of being declined, start with your own bank or credit union and ask about a secured credit card. You keep money on deposit that allows them to give you the card. Your limit is tied to your deposit. Best of luck.
0 votes
Brittany,
I personally am anti-credit cards. Haven't had one in years! If you have a recent track record of making payments on time (example: paying rent, cell phone bill, etc.) some lenders can manually underwrite the loan and get you approved. It is more difficult and more time consuming but it is possible. If you would like me to put you in contact with a lender that can work with you let me know.
Flag Fri Nov 15, 2013
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