Real Estate Agent · Philadelphia, PA · Member since 2018 · 416 posts · 396 votes
Hey everyone. I have some missed credit card payments on my credit history. I’m in the process of rebuilding my credit from the mid 5’s up to a better score. My goal is to buy my first property by then end of the year, credit permitting. For any investors who have had a similar journey as me, what obstacles did you have to overcome? How would you get started in this situation?
Appraiser · Denver, CO · Member since 2018 · 40 posts · 58 votes
7y
There are a lot of resources out there to get your credit up.
First, don’t pay attention to Credit Karma or virtually any other credit system other than the official FICO scores. The others can be a good indicator to figure out if you’re on the right track, but they seem to use an entirely different algorithm that doesn’t necessarily reflect your “true” credit score. The vast majority of mortgage lenders use the FICO score. There’s an app for it.
Also, look into companies that utilize your past/current rent payments to add an account to your credit report. A google search will give you decent results (I’m not sure if I’m supposed to advocate for other companies in the forums).
If you can, and if you trust yourself financially, a couple credit cards can help. Keep ~5% on them or so and pay at least the minimum payment every month.
Lastly, you’re allowed to view all three versions of your official credit report once a year. It’s a law, now. Again, Google is your friend here. Once you have the credit report (I’d recommend only pulling one for now and the others as your credit score goes up), dispute any debts or missed payments that you think may be incorrect.
There are a ton of little tricks out there, but the best thing you can do for yourself is pay your bills on time every month. It’ll take some time, but consistency and patience is the only ‘fool-proof’ way to boost your credit.
Good luck!
PS: Read success and financial books. Arm yourself with knowledge while you are preparing for investing. It also helps to keep you motivated and looking forward, not backward or second-guessing yourself. You got this! 💪