Repair Credit Score

Archive for June, 2009

Question: Length of Collection in Washington State?

These are very important questions because I am now trying to repair my credit so I can buy a home but am not too familiar with the credit game. And I only have two things in my credit now.

1. How long can a creditor hold you in collections for?

2. and if they remove you for some reason ( pulled out my report the other day and they are no longer there, and I haven't paid it yet) can they report you back into the collection agencies?

3. Anyone have any tips on how to improve your credit?

Answer: The collecting SOL for credit cards in Washington is 3 years.
The collecting SOL for written accounts - bank loans etc is 6 years.

http://whychat.5u.com/States/state-wa.html

The first poster gave a very good answer for your other two questions.

Credit Repair Tips to Improve Credit Scores Fast

Amount you owe & how Amount you owe can improve your Credit Score

Amount you owe is the amount you currently owe for your credit cards, mortgage, car, etc. Amount you owe is on your credit history and Credit Report. This can be good or bad, depending on how much you owe compared to the limit you have.

It is best to not max out your credit cards. Your Credit Report is based on the amount you owe on your credit card compared to the credit limit.

For example, if your amount owed as a percentage of your credit limit is:

• 0-30%: This will improve your Credit Score
• 30-60%: This is ok for Credit Score
• 60-90%: This is not good for your Credit Score

Your Credit Score will be higher if you have a large line of credit and only owe 0-30% of the credit line available in your name.

Does having no debt improve Credit Score?

No. It is the ratio of credit line or credit limit and your debt that determines how good your Credit Score is. For example, it is better to have three credit cards of $10,000 credit limit and only owe $2,000 than having one card of $3,000 credit limit and owe $2,000.

Mortgages and Credit Score

Mortgages are on your Credit Report. If you have many loans you don't want to continually go to the same bank. Your mortgage broker will help you (he gets paid if you get your loan). Be up front with your mortgage broker about your loans so he can shop at different banks. If he doesn't know where your other loans are he might try to get you a loan at a bank where you already have a loan and they could deny you.

Question: What type of interest rate would a 638 Credit Score get?

For a new home purchase that is...
I have well over the 20% down, for like 35%. Also, I currently have a mortgage on my current home but want to sell and buy bigger.
Looking at a 350,000 home with 110-120K down

Answer: I'm not sure if anyone here is qualified to tell you, however my sister whose Credit Score is 618, due to being a single mother, just qualified in our state for a mortgage with 5.25%, and NO money down, so don't listen to all naysayers, you do not need perfect credit, she has a bankruptcy from 2004 on hers.

Also here is a website you can check out for free that might help you out.

http://www.mortgage101.com/mortgage-rates-home

Many People Prefer A low Interest Rate Credit Card