• First, visit creditchecktotal.com and obtain all three of your credit reports and scores. If you do not wish to pay a $14 monthly fee, please be sure to immediately cancel your membership once you’ve obtained a copy of your reports.

• After this week, the goal will be to get your (FICO) score – your middle score to at least 620. The higher the FICO score, the better the terms you will get. Credit requirements were once lower, but due to the recent pandemic, most mortgage companies have raised their requirements.  This may change but as long as you are at a 620 FICO you should be safe. 

• If you have no credit history, the best way to build a history would be to get a secure credit card. Capital One, in our opinion, is your best source to obtain a secure credit card. With a minimum down payment of $200, you can get a secured line of credit of about $400. The more money you place down the larger your credit limit will be.  Use this card to pay for gas or items each month to which the balance on the card can be paid off in full. By paying off the balance each month, those who have no credit history should be able to build a solid score within six (6) months. To learn more about secure credit cards, click the following link: nerdwallet.com/best/credit-cards/secured . Crazy as it sounds try not to use more than 3% utilization

• (Use this tradeline) Please also check out https://www.creditstrong.com/subscribe/

• If you already own a credit card, please be sure you pay it down to at least 30% utilization. For example, if you own a card with a $1,000 credit limit, you should not be using more than $300 on the card. It’s easier said than done, but pay down as much debt as possible, so you can get the best rates on your mortgage

• The scenario above is assuming you have no negatives on your credit history, such as late payments, debt collections, charge-offs, a repossession, a foreclosure, or bankruptcy, etc. If your credit file has one or more of these items, you may need to see a credit coach for further assistance.
• REMEMBER THE GOAL IS A 620 OR ABOVE FICO.

 HOMEWORK FOR THIS WEEK:  Your homework for this week will be to order all three (3) of your credit reports. By the end, you should know your Experian, Equifax, and Transunion scores. You should know your exact FICO score. (Your Middle score), for example, if your three scores are as followed 600, 580, and 620. Your middle score (FICO score) in this scenario would be 600.  (Text us in the chatbox if you have any questions)