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Getting Your Credit Score up in a Few Months
How to Get Good Credit
If you are like many American's you go to purchase your first home only to be "slapped in the face" with not having a high enough credit score to get a mortgage loan. This can be extremely frustrating and disheartening because usually we find the home of our dreams before finding this out.
Another thing that happens is a lot of people go to their local banks that they have been banking with for years thinking that they will get a loan no problem. Well, if you've tried it and been denied you know all to well it's extremely hard to get a loan through a bank.
This is especially true since everything with our economy and the banking system has happened. Unless you have perfect credit and can show two years worth of working at the same place don't even bother trying to get a home loan through a bank. You want to go through a mortgage company. Even if there are a couple snags they will work with you and tell you exactly what you need to do to qualify for a loan.
Rebuilding Your Credit Score
A lot of people think it's a long drawn out process to get your credit score up to where it needs to be whether purchasing a home or car. This is simply not true. I learned about this after myself having credit problems and talked to someone who specialized in rebuilding credit. He said to go and get a credit card and purchase a small amount, $200 - $300 on it. Then pay the minimum monthly payments for 5-6 months, and then pay the whole amount off. Well, I didn't think it was this simple but I did it and it worked. I went from having a credit score in the mid 500's to 660 in only 5 months.
Some people get turned off by the idea of having to get a credit card and do this. They feel like they're going into debt, but you're not going into debt. You're rebuilding your credit and it's only for a matter of months and then you're paid off.
Another option is if a spouse or significant other has a credit card that you can add your name to, this will also work. Beware though, with a joint credit card account if they don't make the payments it will make your credit score go lower and show up bad on your credit report.