Instantly Increase Your Credit Scores by up to 20-40 points!

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Rent To Own Houses Team wanted to speak about how you can instantly increase
your credit scores by up to 20-40 points to help you get qualified for a mortgage when your in a rent to own house in Colorado.

The strategies below are effective for the certain types of credit files,
ones where there is not much established cards (less then 3 open
accounts) or one where majority of the credit is more recently opened
(within the last 12 months). We’ll be looking various types of accounts
that can add to the score:

—-SECURED/ UNSECURED CREDIT CARDS ( upto 20 point score increase):
If you do not have any open credit cards that have been recently
active on then you can gain up to 20 points by getting either of
the following accounts. All these accounts have the same effect on the
score.

A) UNSECURED CREDIT CARDS (approval rate low) :
Top tier cards, like Citi, Wells, Chase maybe difficult to get especially
if the score is not over 700, however Capital One has liberal lending
policies, and so do credit unions. In addition, the client’s own bank may
be a favorable option due to the preexisting relationship.

B) STORE CARDS (approval rate moderate): These have a good rate of
approval for scores in the mid 600s and sometimes even below.
Store cards like JC Penny’s, Target, Macys, Banana Republic are very
generous with their approvals.

C) SECURED CREDIT CARDS (approval rate high)
These are the easiest  to get a preferred option if the credit score is below
600, normally a deposit of $300-$500 can get a client a secured credit
card, again here Capital One is a good option, along with local
credit unions and a person’s pre-existing bank.

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——AUTHORIZED OR JOINT USER ACCOUNTS: (upto 40 point score increase):

Yes authorized user accounts still do impact the score, despite the fact
that there was talk that authorized users would stop doing so. These by far
impact the credit file the most where there is no or little prior account
history on a person’s credit report. This is because unlike a new credit
card, where a person has to gradually build up a payment history month by
month, an authorized or joint account will start showing on a person’s
credit report with all the prior history that the primary card holder has
already built.

For instance, if I was added to my brother’s credit card that’s been
open since 2014, the very next month the card would show up on my credit
report with over 4 years of credit history.

a)      DIFFERENCE BETWEEN AUTHORIZED AND JOINT USER CARDS
As a joint user both individuals are responsible for charges, whereas as an
authorized user, the authorized user is not responsible for the debt the
primary card holder has incurred if the account is defaulted on.

b) HOW TO PICK THE RIGHT CARD & HOW TO  GET ADDED TO IT:

The first thing to look out for is the credit card should not have prior
late payments, second the card balances should be very low in relation to
the credit limit (at 10% of the credit limit or less) , next the older the
credit card the better.
When getting added, the card company should be given the new user’s
SSN and dob, if this information is not taken down, then the card will
not show on the new user’s credit report.

ADDITIONAL TIPS:

This is NOT for everyone, sometimes opening up a new account may actually lower a
person’s credit score. This only is for a specific type of credit files, if a person already
has 4 to 5 established trade lines with a good history, a new account will
not help, however an authorized/joint credit may help if the account being
added is significantly older than any of the person’s currently active
accounts.

Reach out to us with any specific questions or scenarios if you are trying to do a lease purchase rent to own program, We’re happy to
render free credit optimization consultations to all my rent to own tenant buyers.

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