Credit Repair/Credit Repair

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Expert: Gary Lambert - 12/17/2009


Question
I am trying to raise my FICO score after bankruptcy 1 yr ago I have a secured  visa credit card with 9 % intrest rate that I have 500 limit that I pay off every month and can raise limit as high as 5,000. Is it better to raise the limit to the max and not carry a bal or get a second card and carry no balance. I wish to get score up quickly as possible to qualify for mortage at the 2 yr mark.

Answer

Gary Lambert
Hi Alex,

I will give you my standard answer.  In order to prepare for a mortgage, follow these steps:  

How many open, active credit accounts do you have?  Mortgage lenders like to see at least three lines of credit, preferably four.  Credit cards which are secured will work, but I would encourage you to look at Capital One, Credit One, Orchard Bank and Premier Bank.  Those are the top four opportunities in my recent experiences.  They are not secured cards, and are fairly lenient in their credit requirements.  

The key on any credit accounts that you establish is to always pay the payment by or before the due date.  Otherwise, late payment fees could practically eat up the payment you make.  With credit cards, establish an ongoing balance that equals 25% to 30% of the cards available credit line.  Maintaining that ratio is the key to maximizing your credit score.

Following a bankruptcy, it is important that you handle your credit accounts perfectly.  Lenders want to see that you are capable of handling your financial responsibilities.  The only way to do that is to show them that you can.  If you are wanting to apply for a mortgage in one year, use this year to establish a track record of perfect payments.  

If you need more help, please contact me back.  I have 15 years experience in the mortgage business.  Thanks for letting me answer your question, Alex.  Please rate my answer if it has helped.  Have a great day and best of luck to you!  

  

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    Rating(1-10)Knowledgeability = 10Clarity of Response = 10Politeness = 10
    CommentVery helpful and very quick response. Thanks alot


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Gary Lambert

Expertise

I can answer questions regarding the use of secondary credit numbers to protect against identity theft, any credit questions regarding scoring, cause and effects and re-establishing credit.

Experience

Published "Your Credit, Your Future" in 1988. That was one of the first self help credit repair manuals and was written after spending two years of research time in the local law library. I have been doing credit work ever since.

Education/Credentials
University of Alabama, Finance

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