Due to the pandemic and associated lockdowns and layoffs, millions of people around the country struggle to pay their bills. Has your financial situation changed because of COVID-19? Alternatively, you may have escaped Coronavirus-related financial setbacks and would like to repair your FICO score so you can buy a home? We help people across the San Gabriel Valley, the Inland Empire, the LA Basin and Orange County repair their credit. Here are some sure-fire ideas for repairing your credit.
Credit Score Matters
As a licensed mortgage, broker Jorge Abich helps people overcome credit challenges every single day. He works with clients on an ongoing basis to help right their financial ship. Working with Jorge and his team, you’ll be positioned to purchase a house or condominium. Improving your FICO scores won’t just qualify you for a home loan but will help you secure consumer loans to rent homes or apartments as well as to purchase vehicles. In fact, some employers consider credit worthiness before hiring applicants.
In your struggles, know that you’re not alone. In fact, you might be surprised to learn that most Americans face a financial crisis at some point of their lives. COVID-19 is one example. No matter whether the crisis you face resulted from personal or family illness, job loss, or overspending, financial turmoil can leave you reeling.
How to Repair Your Credit
Review your FICO Scores.
First, run your credit report. Legally, you can request a copy for free once a year. To get a complete picture, you should consider all three credit reporting agencies – Equifax, Experian, and TransUnion. Make sure the information is current and correct. People routinely find mistakes when they review their reports. If you find something amiss, contact the agency directly to challenge the error.
Learn to live within a budget.
One of the first steps to fix your finances is to learn to live within your means. Create a realistic assessment of how much money you make and how you spend on either a weekly or monthly basis. Then, list your income from all sources. Note your cash-on-hand, including the money in your purse or wallet as well as everything on deposit.
- Detail your “fixed” expenses— those that are the same each month, such as mortgage payments or rent, car payments and insurance premiums.
- Write note the expenses that vary—such as entertainment, food, recreation, and clothing. Journal your expenses (even those that seem insignificant). This is a great way to track spending patterns and identify necessary and optional expenses. The goal is to make sure you can make ends meet on the basics: housing, food, health care, insurance, and education before spending the surplus.
- Many people uncover a shortage instead of a surplus. That’s when the tough decisions come into play. If you spend more than you make, you might consider increasing your income by taking on a second job or renting out a room in your home. Whatever it takes, start to pay your bills on time. Also, get caught up on past due bills.
Lower the balance on existing credit cards.
While credit card issuers want you to use their service by charging products and services and paying in a timely manner, the goal for good credit is to keep balances under 30%. This is card the utilization ratio. Experian reports that people with excellent credit scores (800 or higher) tend to keep utilization under 10% for each card and for total credit card use. If you have charged more than this on any card, start to pay down the balance of one card at a time, starting with the credit card that has the smallest balance. In the meantime, use your credit cards only for reserving rental cars and hotel rooms. Refrain from purchasing anything on credit. Aim to pay off debt rather than consolidating it.
Make sure creditors do not charge off your debt.
If they write it off, the charge-off will remain on your report for 7 years.
Don’t open several new accounts in rapid succession.
Lenders assess credit worthiness based, in part, on how much credit the applicant has access to. This could hurt your chances to secure a loan.
If you have further questions, contact us today. We would love to review your credit and help you determine if you are in the position to purchase a home. If work needs to be done before you can qualify, we will help determine what steps you can take so you can one day own the home of your dreams.
About SoCal Platinum Properties, Inc.
If you want to buy or sell property in or around San Dimas, California and the surrounding area, don’t get caught in a Catch 22 — owning two homes, or none at all. We list properties and advertise them to guarantee a swift sale for maximum profit. We also assist home buyers as they hunt for, make competitive offers, and purchase residential property. Realize your dream of homeownership, reduce your house payments to free up funds for whatever purpose you see fit. We offer the following refinance options: FHA Streamline, FHA Cash Out, FHA 203k, VA Streamline, VA Cash Out, Conventional, Commercial and Jumbo loans. Lock in your low rate today (213) 709-5178.