Fix Your Credit Score by Setting and Reaching Preset Targets – the Three Key Loan Factors

You hear about credit scores all over the media. But no one tells you how to get it and keep it, not without a price, of course. Well, here’s what you need to know to get it by yourself and keep it for yourself. Outlined below are the 3 key factors that will help you. These three easy factors along with carefully calculated targets will enable you to reach 650-700 points in six months.

Key Factor # 1. Establish a Credit Score Target. Let’s say that your target is 650. In order to reach this target you must pay bills on time for six months, clear inaccuracies from your report, reduce your debt to below 50% of their credit limits and avoid unnecessary applications for credit. Remember, you can always aim higher.

Key Factor # 2. Debt-to-Income-Ratio Target: 20-30 Percent. In order to meet this target you must pay off small loans, reduce credit card balances and if not already done, increase your income by cosigning with your spouse. If you are married, it is important to keep your spouse in on all decisions. You can always aim higher.

Key Factor # 3. Loan-to-Value Ratio Target: Under 80%. Meeting this requirement requires you to increase down payments to 20% of value for a home or car and negotiate to get a reduced price with seller and /or select a less expensive home or car. If you’re not looking to make a major purchase at this time, just following key loan factors 2&3 will bring you the desired results-a higher credit score.

You are now well on your way to Restoring Your Credit. Much success.

There is a myth that bad credit is will ruin your life.That is not true. Your credit is just one factor in the lending and credit approval process. A period of financial hardship doesn’t mean you are a bad person or not creditworthy. Things are never so bad that it’s impossible to improve your credit. That’s why you should visit: http://www.fixyourhomemortgage-creditscore.com