Credit Improvement

Begin Now!

It is imperative that anyone considering a Rent to Own or Lease Purchase Home begin credit restoration immediately. The sooner the better!

If you aren’t interested in restoring credit, then a Lease Purchase probably isn’t for you. Why?

There is no point in throwing away the option fee if you aren’t going to do what it takes to eventually own the home. Unless you are serious about doing what it takes to restore your credit, you are better off renting. If you don’t do what it takes now, you will never qualify for a mortgage!

Credit restoration takes time. It isn’t going to happen overnight. So, you should begin working on your credit as soon as you make the decision that owning a home is important to you!

3 Categories

The main focus of our program is to help people prepare for financing while they live in the home they want to buy. Almost every person that comes to us falls into one of three categories in terms of credit and qualifying for a loan:

  1. Derogatory items and incorrectly reported items that require credit improvement.
  2. Lack of open trade lines that require establishing new trade lines with secured cards.
  3. All of the above.

Credit Improvement

Often, when an old account is sold to another company, information about that account or the dates reported are incorrect. It is not uncommon for the same account to show up multiple times due to the account being sold to other companies. If somebody goes through a bankruptcy, it’s almost inevitable that there are items that aren’t reporting correctly on the credit report. Getting these types of items corrected on the report is where credit restoration helps.

The credit improvement program we recommend was specifically designed to help people in our program prepare for mortgage financing. Not only does each client receive in-depth credit analysis, but each will receive assistance resolving incorrectly reported items, and even help with budgeting!

Credit improvement is absolutely vital for success in financing your home. That’s why we pay for the initial fee of ~$300 for one person for each home, and why it’s mandatory for every applicant! The monthly fee for Credit Improvement is generally $49-$99 per person. The program is a month-to-month program, so people typically cancel the credit improvement service once they are ready to get financing, but many have continued post-closing to raise their scores even higher.

If you use one of our recommended lenders, you will actually be reimbursed or credited all the costs of your credit repair if you get your mortgage through them!

Secured Credit Cards

It has become more and more important to establish active trade lines utilizing secured cards. Lenders are now requiring in most cases that each applicant have three active trade lines, which is VERY important to know! Obtaining secured cards and using them properly is a great way to raise your scores, particularly when used in conjunction with credit improvement. But with the lenders now requiring three active trade lines, secured cards have become a necessity for most people coming to us! One of the first things our credit improvement company will do is help you easily acquire those trade lines.

The One-Two-Three Punch

Most people who come to us really need all three things – credit improvement, secured lines of credit, and rent reported to the credit bureaus. We tend to refer to this as the “One-Two-Three Punch.”  The reason is that although credit improvement is extremely effective, if you don’t have the active trade lines to offset any negative accounts and show responsibility with credit, the credit improvement will be limited in its effectiveness. The same applies to secured cards and rent payments reported to the major credit bureaus; if you just get a secured card or just report your rent to the credit bureaus, it will help, but it will be limited in its effectiveness.

By enrolling in credit improvement, getting secured cards, and having your rent reported to the credit bureaus, you are giving low credit scores the one-two-three punch and you’re on your way to getting financed!

The Bottom Line on Financing

The bottom line to getting financed in most cases can be summed up as this:

  1. Enroll in credit improvement – trust the professionals to help you do it faster.
  2. Obtain at least three secured cards or active trade lines.
  3. Report your rent to the three major credit bureaus.
  4. NEVER, NEVER, NEVER be late on any payments while in the house – this includes rent payments and any payments on credit card or other accounts.
  5. Don’t buy a car until you have bought your house!

By following these five main rules, you will be well on your way to home ownership!