Investing in Real Estate with Bad Credit
In most cases, having two or three late payments on your credit report should not be a problem. It’s more serious if you have had a number of 30-day late payments, or you have been more than 60 days late on any payments, or, if you have defaulted on a loan within the past two years. Increasing a credit score takes time. Credit issues remain on your credit report for 7 to 10 years. Tips for Improving Your Credit Score:
- Pay bills on time; if you’ve missed payments, get current and stay current.
- Regardless of whether the debt has been satisfied, a collection account on your credit report will remain for 7 years. However, it will show that debt has been paid.
- If you’re having trouble paying bills, contact creditors or meet with a legitimate credit counselor. This won’t improve a credit score immediately, but it can help get you on track to improve your score.
- Keep low balances on credit cards and revolving debt accounts.
- Pay off debt. This is the most effective way to improve your score. In fact, owing the same amount but having fewer open accounts may lower a credit score.
- Don’t close unused credit cards as a short-term strategy.
- Don’t open a number of new credit cards that you don’t need as an attempt to increase available credit. This could actually backfire and lower a score.
- Apply for and open new credit accounts only as necessary.
- People just developing a credit history should not open numerous new accounts too rapidly. New accounts will lower the average account age, which will have a greater adverse impact on your score if you lack other credit information.
- Rate shop for a specific loan within a focused period of time to avoid unnecessary credit inquiries resulting in a negative impact.
- Monitor your credit report. As long as you request a credit report directly from the credit reporting agency or through an organization authorized to provide reports to consumers, it will not impact your credit score.
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