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I am trying to get a mortgage after credit settlement plan

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    CHRISTOPHER BATTISTA

    please stay away from high interest traps like payday or title loans. they are not worth the cost

    in my opinion you have a ways to move to get good rates and approval on a mortgage. My advice would be to focus on the fastest possible payoff of your current debt, rather than taking on more different payments, pay off those existing ASAP.  A single line of credit in good standing with no balance will be your best boost to your score. once you see the benefits of this, i would consider looking into new lines of credit where you can play the ratio game. with no outstanding debt your score will rise all on it's own and will get you bigger credit lines and better terms no matter what kind of credit you apply for.

    for what it's worth: revolving credit lines (cards) do give you better boost to score than auto loans. payday/title loans are pointless, dangerous and expensive.  I was in your shoes 2 years ago. I turned a 580 into a 754 and i'm going to buy my house this year (finally!)..  I did it by paying down my debt first, then increasing my card count from 1 card with a $350 limit, now I have 9 cards with tens of thousands in credit that I DON"T USE.

    Remember this: people with good credit PAY, people with bad credit CHARGE.  I hope this has helped. Best of luck to you!

     

     

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    Jen Ritz

    Thanks for your answer! I was thinking along the lines of opening credit cards that I don't use but increase my credit by having increased amounts available. gotcha about the payday loans!

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    CHRISTOPHER BATTISTA

    New credit cards will increase your limit, thus reducing your ratio and increasing your score, you are correct this does work. However a score under a 630ish those cards are going to be limited balances, have annual fees, and be of low quality in general. No outstanding balances would be much more beneficial to your score In My Opinion it will get you to your goal faster.

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