Qualifying for a mortgage is literally impossible in 2009 if you have bad credit scores. Any credit score below 580 in today’s standards is considered bad, or not good enough to qualify for a mortgage. If you are serious about getting a mortgage to buy a home, or to refinance your current mortgage, then you will need to improve your credit scores in order to qualify.
Improve My Credit Scores -What Can I Do?
- Credit Repair – Credit repair is legally using your rights through the US Consumer Credit Laws to question inaccurate information on your credit report.
- Increase your credit lines without increasing the amount of your balances
- Pay down your credit line balances to where they are under 50% of the credit limits
- Pay off with the original creditor any collection account that is less than 12 months old. Make your payoff contingent on the original creditor removing the negative marks on your report by canceling the collection account for example.
- Payoff your credit cards but do not close them out. Long term open credit accounts is very important to higher credit scores.
- Make sure you have a blend of credit. For example if you can manage it have a car loan, a couple credit cards and a student loan.
- Dare we say it…make your payments on time as you agreed in your credit agreement contract.
- Call your credit card company and see if they will re-age your account.