How Do I Establish My Credit?

Mortgage Credit 101

In order to qualify for most mortgage programs you need to  have a middle credit score between 620 and 640. We have investors that will accept scores down to 600.  If you have scores in this range the requirements for home mortgages are stringent. 


On of the easiest ways to build a credit history is through the use of "Secured Credit Cards". A secured credit card is a Mastercard or Visa card account that is opened using your own money as the security for the credit limit on the card. You must have (2) open credit accounts, with a 12 month history for each account, to have these accounts count towards the credit score. 



MANAGING MY NEW CREDIT ACCOUNTS


  • Don't let your credit card monthly balance exceed 30% of the available credit limit on the card. 
  • NEVER make a payment late. A late payment can drop your credit scores as much as 75 points and can adversely affect the scores for up to 12 months.
  •  Don't pay your entire balance off every month. Leave a small balance to carry over into the next month. This will actually help to build your scores faster.
  • If you have no other open lines of credit besides the secured credit cards, the new cards normally have to have a 12 month history to count as a valid line of credit for home mortgage purposes.