How to improve your credit score today so you can get a home mortgage and interview with Aman Verma of Secure Credit Advisors
Highlights of this video:
*Things you can do today to help not only secure a home mortgage but get the best rate possible
*Tips you can do today to help improve your credit score
*How mortgage rates are directly related to your current credit score
*How long it will take for your credit score to show improvements
*What number is considered a good/bad credit score?
*Does using a debit card help improve your credit score?
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Secure Credit Advisors
Email: info@securecreditadvisors.com
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Transcript:
Mark Schreier: Hello everybody. This is Mark Schreier from century 21 American homes. And today I'm going to be discussing a very important topic for particularly first time home buyers, but even for people who might be looking to move up, uh, in a larger house scale up and they have to get involved with the banks, which means they need to support themselves mortgage. So the topic is how to improve their credit score today so you can get a home mortgage and we have a special guest Aman Verma from Secure Credit Advisors and he's going to introduce himself a little more and a little more about his company. And before he does that, I just want to say I met Aman and I thought it was a great service because I meet a lot of people, particularly first time home buyers that want to buy a house. But when they go to get pre-approved for mortgage, they're not credit worthy.
Mark Schreier: And if you can avoid that before, it will save you a lot of aggravation and be able to get that house much sooner. So Aman, tell us a little about yourself and your company. Thank you Mark. I appreciate this opportunity. My company, like Mark said, is Secure Credit Advisors. We help people fix their credit. When I say that as, I mean as we help remove all negative items off their report. Latenesses, bankruptcy, judgements, collection accounts, you name it, we git it off. We provide a hundred percent money back guarantee to all our clients and it's a process. If somebody tells you it's a quick process not going to happen, it takes time. It is a legal process. It's definitely takes time to do so. I would advise anybody that's looking to purchase a home and get you know, mortgage is to start this in advance, don't wait till last minute and you want to at least you want to give this about a year, years worth of time, a year and a half worth of time in order to get where you need to be to get the ideal credit score to get your ideal mortgage rate.
Mark Schreier: Great. We're going to dive into this in a little more detail, but first I want to do a little basic house, housekeeping. If you new to the channel, definitely subscribe and hit the notification bell on the side so you get all the videos that I produce on a weekly basis and directly to your inbox and also like it hopefully you will and share it to somebody that you think might have a need for this type of information. The name of the channel is real estate one-on-one. All things you need to know about buying and selling residential real estate comes to you directly on a weekly basis. So with that being said, what are things that somebody, again, whether it's a first time home buyer or somebody that is looking to scale up can do and what give a little more info about the time-frame. Six months, three months before your credit score will start reflecting changes in a positive way. Sure. So starting off with that question itself, the process, the credit bureaus have about 45 days and they push two to sixty days at times. Also I sending a generic response to a dispute. We send out saying we have started an investigation process. What it allows them to add the 15 days to make it a 60 day process. That said
Amon Verma: you would within 45 days, you start seeing results when we start to work. But to give us significant change, I would say at least a 90 day Mark and average credit repair file, what would be about six to eight months. But we um, keep the balances low, sorry. Um, during the process I needed some time to lower his balances on his credit cards. Those are vital things that we say about at least a year's time to get your credit completely cleaned up, your credit score.
Mark Schreier: Alright, so 90 days to see the change a year would be the, uh, start thinking a year in advance. And that's a great time too because most people start shopping for a house about 18 months out. So start that process of checking your credit score as well. And one thing I've learned from you Aman, is if your credit score is good or you're trying to move it in that right direction, don't go out and buy or lease a car where you're taking out a loan in the middle of it, because that could, throw like a monkey wrench into the whole thing.
Amon Verma: 100% I have, I have a couple of couple of different tips I want to advise you at every, on a number one, the first most important thing is always, always, always monitor your credit. You know what's going on in your bank account. You know what's going on, your investment, but you know what's going on in your credit. You need to, once a year, you're allowed to get an annual credit report for annual credit report.com go there. It's a free credit report. If not a hard inquiry. It doesn't affect your score. Besides that, sign up for credit karma to allow you to see the summary of your credit or what's going on, to see if there's any trade lines. There's a lot of services out there that allow you to monitor your credit. It's vital. It's very important. Every three months I would advise you to just go online, get a credit report, uh, you know, a soft, inquiry credit reports so it doesn't hurt your credit and just see what's going on. Okay.
Mark Schreier: Um, another thing that I'm sitting down and having a conversation with Aman before this video, I always was under the impression, and I know you get, uh, you're allowed a free credit report once a year from all of the three credit agencies. That's what I was doing. But then I'm on told me you really want to get a, basically a average or the three combined and I believe that you said that annual credit report.com combines all three of them. Is that right?
Amon Verma: Yes. The reason why Mark, that's a great question. The reason why is the credit bureaus are private entities. They don't speak to one another of what's being reported and what's not being reported. And it costs a creditor or somebody who's credit reporting on your credit Bureau too. It costs them money to do it. So they might not report to all three bureaus. They might report to one Bureau and let's say if you're only checking TransUnion, your TransUnion scores can be in the seven hundreds but Equifax score and your experience scores could be lower because they're not reporting that new collection on there. So it's vital to check all three bureaus and you can get like Mark said a combined report that allows us to all three reports and all three scores and all the activity on one report and it makes it so much easier. You can, you can compare line by line of who's reporting what and how your credit score is being affected with that.
Mark Schreier: So basically you're being proactive rather than reactive, which is always a good thing when buying a house. If you're talking about leasing a car or getting any type of loan, your credit is key. And knowing what you have going into any transaction is definitely a plus. Um, on that note, what is, for you or for mortgage people, what is considered the best score? What should people be trying to get their credit score to and what would be considered a not so good credit score that you could have a lot of problems.
Amon Verma: Um, anything under six, six 30, six 40, it's going to be having you, you problems, you're not going to get a great rate. You're not gonna be a competitive rate. Um, above 725, you'll will be tier one, 750 and above. Obviously, you know, you touch it, you get it basically. Um, but there's a lot of factors that go into that. Um, not everybody can achieve a 750 right away because it's not that they're not having a credit score, they don't have enough credit history, credit history. There's a big Mark also. So it takes time. It takes time to get there to the 800 , 750 scores areas. So it's not, Oh, I have a seven, I have a seven 35 or seven 40. Am I doing bad? No, you're not doing bad. You're fine. It just takes time to build history,
Mark Schreier: and very good. So it takes time for history. A year ahead would be a good time to start improving your score. Definitely start checking your score just to go over everything points we've discussed. And on the um, building credit, first time home buyers, a lot of them are right out of college. Um, my son, uh, took out a credit card college credit cards is I'm trying to teach him and uh, he's starting to teach me now how he's building his credit. A lot of people are against taking that or having debt. Okay. And my question to you is if you teach your kids zero debt, zero debt, don't get a credit card. Uh, is that a problematic thing? Some people say use your debit card, you know, and that will show a history. Use your, uh, like if they were to get an apartment and they get a phone bill, they get a, an electric bill. Does that help build your credit or is that not correct information?
Amon Verma: So a couple of things fall into to that. Now debit card will definitely not reflect on your credit score. Okay. Does not do that. I'm having a utility bill. It doesn't, it doesn't hurt you but doesn't really help you because utility bills, cell phone bills, these don't report as positive credit, right? They report only when you use something negative. So if you're gonna use a payment, if can report on the credit report so it won't hurt you to have that button and it does help you in the low assets that you are building credit. But they're not, is it reporting anything positively? Um, balances wise if you are trying to build your credit, I always recommend it's important to keep a low balance on there 10% 20% just to reflect that you are usually a credit because of the credit bureaus they get every cycle, which is about 30 days.
Amon Verma: I'm a score basic reporting that gives you any latenesses and your balances. So if your balances up in 70% or 80% of your limit and it reflects bad, if there's a balance of zero and you're trying to build credit, it shows them that you not use your credit at all. So you're not a good, you're not, you're not using your credit. Than at least you to keep your highest score, you'll get a high score on every one, but it will be the highest potential score even get. So if you leave at 10, 25% balance, they're using there, they're seeing that you are a good financial risk. You know how to maintain your credit, you know how to maintain debt and you're not causing problems where you're at the high blip maximum limits and you give me a low balance. So that's good if you keep a 10% 20%. Yup.
Mark Schreier: And uh, I'll try to be quick cause I don't want to go too long in this video, but multiple credit cards versus one credit card, just a,
Amon Verma: which about four or five credit cards. Um, maybe three bank and one or two store cards that you like to do. Those are great. Couple more things I want to uh, go into real quick, uh, shortly about you to home buyers. Um, set up auto payments on your credit cards, but those that are on the due date set up a week beforehand. So in case, monitor your bank to make sure the payment comes up because I've had, Oh, I have auto payments set up. The payment didn't come out and I got hit with a lateness. You've set up a week before you have a week time to catch it up in case the auto payment didn't go through any reason. Um, keep low balances as vital people. What they like to do is, Oh, they're getting approved for O house. They'll go shopping. Let me go get a new couch. Let me get this furniture that for, no, I don't care what the sale is. Wait till the papers are in your a hand and the documents are signed than go shopping, right? All right. Don't . Sorry. Don't add any trade lines. Um, I don't care if Macy's and handing out 90% while you're in the mortgage process. Don't add any trade lines.
Mark Schreier: What do you mean by don't? Oh don't add any new credit cards
Amon Verma: Well, credit cards or loans or anything of that aspect? Yes. The last most important thing, secure your credit from identity theft. Identity theft is nowadays. Huge. Nowadays, your identity of your stolen very quickly. Your social security numbers everywhere, anywhere. Just monetary credit and make sure be proactive, not reactive.
Mark Schreier: Exactly that would, that should have been the title of this. Be proactive, not reactive on your credit. Uh, I to thank you Aman, I'm going to be putting a link to a Aman's website in the description of this. And one other thing I want to say is also know yourself because if you're opening up all these credit cards and you have a history of spending, spending, spending, that might not be the best way for you to go to go about it. And um, thanks again. This is Mark Schreier from century 21 American Homes and thanks for watching. Hello? Yes, I'm talking to you, the person that watched my video to the very end. Thanks a lot for watching. If you enjoyed it, please give me a big thumbs up. Subscribe to my YouTube channel like me on Facebook.
Speaker 3: I am a licensed real estate agent in New York State, but I also have a referral service that deals nationwide. So if you're looking for to buy or sell a house anywhere in the United States, please send me a text, contact me via phone, and I'll set you up with a local professional in your area. If you're in my vicinity, I'd be more than happy to help you out in any of your real estate transactions that you'd like. This is Mark Schreier from century 21 American homes, and I'll talk to you soon.
