The Process of Improving Your Credit Starts Now.
If you're looking for a Rent to Own home, it is wise to start working on credit improvement now, instead of waiting until you're three, six, or nine months into your lease. Positive action is recommended to insure your success.
The sooner you begin the process, the sooner you'll be able to buy the home. In fact, if you are NOT serious about improving your credit, than you should think twice about whether or not a Lease Option Purchase or Rent to Own is right for you.
What's at stake if I wait? Your Option fee. Why throw away the 3.5% to 7% down if you're not going to buy the home during your lease?
Credit repair takes time. It doesn't happen overnight. Begin the process as soon as you make the decision that owning a home is important to you! We only recommend credit improvement companies that charge a reasonable rates, have proven track records of helping our clients and who have a positive standing with the Better Business Bureau.
Some tips about Credit Improvment:
Check your Credit Reports for incorrectly reported derogatory items.
If you find an error, contact that agency ASAP. You may get the runaround, but insist they fix the misinformation. They are bound by law to fix it. Persistence will pay off and could raise your score substantially.
Lack of open "trade lines" such as secured cards work against you.
It's more important than ever to establish active trade lines, and the best, easiest way is to open three (no more!) secured credit cards. If you've gotten to a place where you prove solid income for six months or more, chances are you'll qualify for a Visa or MasterCard. Obtaining secured cards and using them properly goes a long way towards credit improvement. Use the cards to make small purchases, such as groceries, or to pay a bill in full, on time, every month. (Don't buy a refrigerator or major purchase and take six months to pay it off).
Extra "Credit". A couple more easy to follow tips:
Never, ever, be late on any payments to any entity while in the house - rent (of course), car payments, secured cards -- any payments that involves credit, pay them in full and on time.
If you currently own a car that gets you from point "A" to point "B" without incurring costly repairs to maintain, don't buy a car. In fact, restrain yourself from doing any major purchase until you have purchased your house.
By working with a good credit coach, you can dramatically improve your score faster than you thought possible, crafting a game plan for loan approval with your credit coach shows the sellers you're dedicated to being a loan worthy, responsible tenant buyer who will complete the purchase during the lease term as planned.