Every time that someone looks at your credit report, the inquiry is noted. If you have lots of inquiries on your report, it may appear that you are shopping for several loans at once – or that you have been rejected by lenders. Both make you appear a poor credit risk and may affect your credit score. This means that you should be careful about who looks at your credit report. If you are shopping for a loan, shop around within a short period of time, since inquiries made within a few days of each other will generally be lumped together and counted as one inquiry.

You can also cut down on the number of inquiries on your account by approaching lenders you have already researched and may be interest in doing business with – by researching first and approaching second you will likely have only a few lenders accessing your credit report at the same time, which can help save your credit score.

A hard enquiry is like a new company for the first time looking at your credit profile.  A soft enquiry is when an existing company that you already have a relationship with looks at your credit profile.  Hard enquires lower your credit score however, soft enquiries do not lower your credit score.  You want to reduce the amount of new companies looking at your credit profile. 

Learn more about how to increase your credit score while you are rent to own a house. You can rent to own any house in Ontario, Canada. You only need a low down payment, a stable income & less than perfect credit is okay.

How to Rent to Own your next home?

The first step is to request an initial consultation to find out if you qualify. Then, the next step is to complete the online application after the consultation. This will start your qualifying process. Before you know it, you will be renting to own your next home.

Rent to Own your next home. Call the 24hr recorded message system or register on our website & watch the video to find out more about the program & how it can help you. In 60-90 seconds we will tell you everything you need to know.

PLUS – FREE – How to fix your credit e-book included! This program helps!

To learn more about selling your house, click to call us now:

It is easy today to apply for a store credit card that you forget all about in three years – but that account will remain on your credit report and affect your credit score as long as it is open.  Having credit lines and credit cards you don’t need makes you seem like a worse credit risk because you run the risk of “overextending” your credit.

Also, having lots of accounts you don’t use increases the odds that you will forget about an old account and stop making payments on it – resulting in a lowered credit score.  Keep only your used accounts and make sure that all other accounts are closed.  Having fewer accounts will make it easier for you to keep track of your debts and will increase the chances of you having a good credit score.

However, realize that when you close an account, the record of the closed account remains on your credit report and can affect your credit score for a while.  In fact, closing unused credit accounts may actually cause your credit score to drop in the short term, as you will have higher credit balances spread out over a smaller overall credit account base.

For example, if your unused accounts amounted to $2000 and you owe $1000 on accounts that you have now (let’s say on two credit cards that total $2000) you have gone from using one fourth of your credit ($1000 owed on a possible $4000 you could have borrowed) to using one half of your credit (you owe $1000 from a possible $2000).  This will actually cause your credit risk rating to drop.  In the long term, though, not having extra temptation to charge and not having credit you don’t need can work for you.

Learn more about how to increase your credit score while you are rent to own a house.  You can rent to own any house in Ontario, Canada.  You only need a low down payment, a stable income & have less than perfect credit.

How to Rent to Own your next home?

The first step is to request an initial consultation to find out if you qualify. Then, the next step is to complete the online application after the consultation. This will start your qualifying process. Before you know it, you will be renting to own your next home.

Rent to Own your next home. Call the 24hr recorded message system or register on our website & watch the video to find out more about the program & how it can help you. In 60-90 seconds we will tell you everything you need to know.

PLUS – FREE – How to fix your credit e-book included! This program helps!

To learn more about selling your house, click to call us now:

Here is an article that I found by a dedicated woman named Wendy Patton.  She helps individuals with damaged credit buy homes utilizing a unique rent to own program.  She is located in Clarkston, MI USA.  If you need help buying your next home, contact here because she can help you!

#5 Close out old accounts

In some cases if you have TOO MUCH available credit on your credit report it can hurt your score and reduce the amount lenders are willing to loan you.  This can happen to people who have long credit histories.  Old, unused accounts are never closed but they do count as available credit nonetheless.

If your credit score is suffering from too much available credit it may be to your advantage to close out a few of those old accounts.  However, if you do this you need to close these accounts early, well before you apply for a mortgage.  Closing them too close to the time when you apply for a mortgage won’t help your credit score at all.

# 4 Don’t take on new debt

Boy, I can’t emphasize this one enough.  When you move into a new house how tempting is it to go out and buy new furniture or new appliances?  It’s a new house right?  You want new things to go into it.

This is like suicide for rent-to-owns.  You are supposed to be improving your credit and not taking on new debts is critical!  Not only that, but the payments on those new debts will also reduce the amount of mortgage you can qualify for.  Even a monthly payment as little as $25 can reduce the amount of a mortgage you can qualify for by $4,000.  Is that new couch really worth it if you can’t buy the house at the end of the option period?

That being said there is one case in which taking on new debt can help you – if you don’t have enough established credit to qualify for a mortgage.  This only applies to people who are very new to building their credit.  It is not intended for people who are trying to RE-BUILD their credit.  Additionally the only way it helps is if that debt is PAID OFF at least 3 months before you apply for a mortgage.  If it isn’t paid off long enough before you apply for a mortgage it won’t register on your credit report as paid off yet.  These things can be slow to update so you need to give yourself plenty of time.

# 3 Stop using your credit cards

Even if you weren’t trying to improve your credit I would suggest this one.  Credit cards are just sickeningly easy to get in trouble with.  I don’t know many people that have credit cards that haven’t gotten into trouble using them at some point in their life.  Just keep this in mind – the more credit card debt you have the lower your credit score.

Just stop using the darned things.  Not only do they lower your credit score when you have higher debt, but remember that when the monthly payment on your credit cards goes up the amount of mortgage you can qualify for goes down – by thousands of dollars!

# 2 Pay everything on time

This is the second-most important thing you can do when it comes to improving your credit score.  If you want to qualify for a mortgage you absolutely MUST make all of your monthly payments on time!  NO late payments.  NO bounced checks.  NO excuses!

Consistent, on time payments will really help your credit score.  Not only that, but if you make even one late payment during your rental period you may not be able to qualify for a mortgage at the end.  Lenders HATE to see late payments on your credit, so once you start an option period make sure that you make those payments on time.  Remember if you can’t qualify for a mortgage your option fee is non-refundable.  You don’t want to lose that money or the house.

# 1 Sign up for a credit repair service

When our credit reports have damaging items on them, sometimes the only way to get your credit score high enough to qualify for a mortgage is to get those damaging items off.  This is where credit repair comes in.  A REPUTABLE credit repair company can help you repair your credit and help you remove damaging items from your credit report.  In fact, in cases where a buyer cannot qualify for a mortgage and wants to do rent-to-own, I almost always recommend they sign up with a credit repair company.

If you are serious about doing rent-to-own, working with a credit repair company is a must.  I recommend www.renttoowncreditrepair.com.  They are a reputable company that can often achieve impressive results at rebuilding your credit.

Article Credited to Wendy Patton 5 Ways to Improve Your Credit for Rent-to-Own Buyers.

Looking to rent to own a house anywhere in Ontario, Canada. Contact Do Rent2Own for a free consultation http://www.do-rent2own.ca