Revealed: 9 Credit Hacks from Reviewing 100's of San Diego Loan Applications in 2021
In this video I reveal 9 major credit hacks I have learned from seeing hundreds and hundreds of loan applications over the course of 20 years.
I lay out, step by step, what anyone should do if they are thinking about getting a mortgage to buy, one to refinance, or own their house now - and are thinking about selling and buying a new one.
Because maybe you have some items on your credit report that will need your attention, to resolve, before you can move forward.
Ready for the (easy) step by step process?
Good, let's dig in:
Get your completely free credit report from annualcreditreport.com - it is the only source, authorized by federal law, to get your free report. Something to keep in mind - it's free for a credit report *only* and you would need to pay extra for your credit score. I don't make the rules so don't get mad at me - but, lame I know. Here's what I normally do - since we can have 3 reports (TransUnion, Equifax, Experian), I normally just get one at a time, every 4 months. So, January I might get TransUnion. May I might get Equifax. September I might get Experian. Then, come January I repeat the process again. Doing this I stay on top of it, each of these are free, and I am getting only one of these a year.
Do not pay any attention to your credit score. Whether you get that from Annual Credit Report, Credit Karma, Credit Sesame, your credit card company, your bank, anywhere. These scores are irrelevant - as, I can only use the credit scores from the report, once you apply with me. You are looking at your credit reports for accuracy of debts, making sure only real accounts are there, if things are paid off they are marked as paid off, etc - not the score. I have seen plenty of examples where credit scores varied widely from every source, both much higher, or lower - so, the only rule of thumb is that there's no rule of thumb.
Verify all accounts that are on your credit report, whether open or closed, are from you. If any of these accounts are not - call up each of the 3 credit bureaus and report.
If you have any duplicate accounts - call up each of the 3 credit bureaus and report. Here's what I mean - I have seen where accidentally the same car loan was listed twice, or credit card, or student loan, or mortgage, etc - If you see that, call and report, to have one removed, as it's a duplicate.
If you have a collection, or charge off, make sure they are yours, and accurate. Depending on which type of loan we go with will determine whether they need to be paid off or not. Here's my general rule of thumb - if it's an open collection - call the creditor, offer pennies on the dollar, pay, get a paid receipt, then call and show each bureau. If it's a charge off - leave it alone (Unless we need it paid off to qualify in terms of debt to income ratios).
Any debts not current - bring current. Any car loans, student loans, credit card payments, personal loans, etc - bring those current.
If you have had a short sale, foreclosure, bankruptcy, divorce, pay child support, get child support - make sure you have all relevant paperwork.
Do *not* go above any of your credit limits. If you have a credit card with a $5,000 limit - don't be at $5300. This alone will drop your score quite a bit across the board.
Do you owe the IRS some tax money? Call them up, or go online, set up a repayment plan with them, depending on which loan you go with, shouldn't be an issue.
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