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How to Improve Your Credit

Want to apply for a HUD Home Loan? Check your credit rating.



Credit ratings are an overall financial health resume. They affect the ability to finance a home. If you've experienced credit problems in the past, it is essential to have a clear understanding of your credit rating so that you can rectify any problems or inconsistencies on your credit reports.


Keep in mind that the amount of money you make does not determine your credit rating. Instead, your rating is based on the length and quality of your credit history. In other words, how much money have you borrowed, how well have you paid it back, and how much money do you currently owe?


These are the primary factors that financial institutions use to determine whether to lend you money.


HUD Native American Home Loan Program Credit Requirements

Unlike most home loan programs, the HUD Home Loan Program does not have a minimum credit score requirement to qualify. However, it does have specific requirements regarding factors that influence your credit score.


To qualify for a loan, the HUD Home Loan Program requires that you have:


  • No outstanding judgments or tax liens

  • No outstanding collection items

  • No outstanding charge-off balances

  • No bankruptcies or foreclosures within the last three years

  • No 30-day delinquency ratings within the last twelve months


If any of these issues appear on your credit report, they must be addressed before submitting your loan application.


For people with credit problems, the biggest issues are usually repeated delinquencies (late payments) and/or debts that have been turned over to collection agencies. If you have fallen behind on credit card or car payments, for example, or if you owe money to a collection agency, you must get current on these obligations, regardless of the amount.


The HUD Home Loan Program insists on strict compliance with all the credit requirements listed above. If you owe as little as $10 on an outstanding account, you will not qualify for the loan. Therefore, it is essential to clear up any credit issues before submitting your loan application.


When working with creditors, gather all supporting documentation regarding the issue. Keep a record of all contacts (verbal and written) with the creditor while attempting to clear up the problem.


The steps to clearing your credit rating are specific, but not impossible. If you need further assistance with your credit issue contact me Chayo Briggs and get on the road to an outstanding credit rating. http://chayobriggs.com

Fixing Your Credit


How can you improve your credit rating?


The first step is to request a copy of your credit reports from the three main credit bureau agencies: Experian, TransUnion and Equifax. By law, these companies are required to provide you with one free report every 12 months.


Next, identify any problem areas on the reports and attempt to resolve the issue. Common credit report issues include:


  • Collection item errors. Sometimes, collection items paid still show a balance on the report.

  • Collection accounts that have not been paid. Start by contacting the collection agency to work out payoff arrangements. In some cases, you may be able to settle the debt for less than what is reflected on the report.

  • Incorrect delinquency reporting’s. If you feel that an item is reporting incorrectly, contact the creditor directly and request a copy of your payment history. If you can confirm a mistake in the reporting, request that the creditor provide a written agreement to update the credit rating. You can also file a dispute directly with the credit bureau.


Never assume that just because you paid off a credit balance it will automatically get properly recorded. Credit companies can and do make mistakes. Get in the habit of checking your credit at least once a year, and promptly resolve any issues that show up on the reports. So, use caution and common sense before hiring anyone to do what you can do for yourself.


When working with creditors, gather all supporting documentation regarding the issue. Keep a record of all contacts (verbal and written) with the creditor while attempting to clear up the problem and maintain a positive attitude.

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