Page 35 - The Latest Homebuying Guide

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spending limit with an “unsecured” status. This will have a
positive effect on your credit history and your credit score.

6. Spend no more than 30 percent of the new limit and increase
your automatic payment to the new amount.

As your credit is being built, more credit card companies will start
sending you “pre-approved” and “pre-qualified” letters with
applications. Some will have “introductory” rates, and others will
have “no fees for one year.” Remember that 35 percent of your
score depends on a combination of how long you open the accounts
(15%), the mix of accounts (10%) and new credit (10%).

New cards will help you with points in this area. Be very careful
which ones you accept though. Read all the fine prints and make
sure that you are not sucked into something that will make you
spend more money or have negative effects on your credit.

You do not need more than three credit cards, and

you certainly do not need to be spending more
than 30% of the available credit, which you need

pay back every month.

Follow the above procedure until you achieve your credit goals.

Fixing your credit
Buying a home with bad credit is not impossible. It’s just not
advisable because of how much more it will cost you. If you have
any intention to buy a home, and you have bad credit the only thing
you should do is fix it. Fixing your credit is not hard. It may take
some time but millions of people have done it before and so can
you.

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