Ask Terry Questions Build Credit to get Mortgage

Build Credit to get Mortgage

By Terry Savage on July 15, 2019 | Credit/Debt

Hi, my husband and I our in our early 40’s and want a home. I have a credit score of 720 and my husband’s is 540. We own our cars and don’t need to make any major purchases. We have $10,000 saved. We will be first time home buyers. We applied for a home and was told we would be approved if we paid a higher down payment at 10% down. How can we build a higher credit score?

Terry Says

Why is your husband’s credit score so low?  That’s the first question.  Did he have a history of bad credit before you were married? Does he still have outstanding debt?  The easiest way to raise his credit score is to pay down his debt!  After he has done that, he can apply for a “secured” credit card — one that has a credit limit based on a depost you put into a savings account. Then every month charge a small amount and REPAY IN FULL AND ON TIME.  The card issuer will report his good payment habits to the credit bureaus, and you will be surprised at how quickly his credit score will rise.  Find a secured credit card here at this link.

I suggest you hold off buying a home until you get his credit score up.  It’s an indication that something is wrong in your finances.  If you want to get specific, free help, contact the National Foundation for Credit Counseling at 800-388-2227.  The will go over your finances and make specific recommendations.  You should be in a much better situation within a year — and since interest rates are dropping, don’t worry that you’ll be priced out of the market. Better to get this solved first.



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