Hey all, I'd like to get general input on what we can do to try and establish some more points to secure the best rate possible on an upcoming first-home purchase. We hope to use a VA loan for this. Anyway, I purchased TrustedID Family Protection for around $25/monthly in October. I did so as my father had an issue and I thought it best to make sure we were in good shape before going into the purchase world. I'm glad I did as I discovered that CapitalOne reported me delinquent in 2010 for two months. It was an error which has been corrected according to my annual credit report that I obtained yesterday from Experian and Transunion. However, I don't think TrustedID is that valuable. They want me to pay $30 more just to confirm that my credit rating has increased from the repair. First question: should we drop TrustedID and go with something a bit cheaper that actually gives us daily or monthly credit scores? Second question: should my credit score increase now that the repair was made? Previously, I had a 668, 688, and 757. The average put me just a few points below where I needed to be for the best loan from Chase. Third question: what can we do over the next few months to get in the best shape to obtain the lowest rate possible regarding credit scores? Thanks in advance!
Hi Crypted, 1.) $30 seems steep, and shouldn't that inquiry be included in the monthly standard rate you're already paying? There are several cheaper options available; the Equifax 3-in-1 monitoring service is one that's been a popular choice since they do daily pulls from all 3 major CRA's, and it offers up to $1 million in ID theft insurance. If nothing else, it might be worth taking a spin w/ it since they have a 30 day free trial option. Here's a link to all of the credit report services Creditnet offers: Credit Reports - Creditnet.com 2.) You should definitely see bump in your score once the delinquents are deleted completely from all 3 CR's. Your payment history is the number one factor that determines your scores, so those are biggies and it's good to hear you got them corrected. 3.) I would continue making small payments on your credit cards each month and paying them back multiple times in a billing period. More than one payment per month can have a positive effect on your credit score, especially if done w/ consistency. (i.e. over a few months.) Also, if you have any credit debt, do your best to pay these down over the next couple of months so as to lower your credit utilization: the amounts you owe (your balance) in relation to the total amount of credit you have. If you only have one or two credit cards open currently, it's worth considering a new credit card account. This will also lower your total credit utilization (by adding a new line of available credit) and is another chance to show creditors that you're willing to make monthly on-time payments. Hope this helps and please feel free to keep us updated on the home search!
Crypted, Josh gave some great suggestions to increase your credit score for your upcoming home purchase. There is another way that you can increase your credit score by adding authorized user accounts to your credit. Just ask a trusted family member or friend to add you as an authorized user to one of their existing credit card accounts. It is very important for the card to have perfect payment history and they must be able to maintain a low balance (10% or less of the credit limit). The higher the credit limit and the longer the payment history the bigger boost you will see in your credit score. Thanks! Heather with BoostMyScore.NET
Thank you both on the information. I usually make two payments a month on the credit card. I try to pay it off before the statement prints. My reasoning is that I saw my credit had a negative for running a high balance. We use our card for everything so that we earn miles. But, we always paid it off when we received the statement. I guess the fact that we paid it off doesn't get reflected when the balance is nearly the same each month. I have no clue if my alteration to the payments has helped at all, but it's only been five months. I really think I'm wasting money with TrustedID. But, I'll start another topic on that matter. Thanks again!
