In this blog post, I am going to share with you how I dramatically increased my credit scores over a period of just two months. Right now, real estate agents have an excellent opportunity to build wealth by buying homes at discounted prices. You have access to deals, knowledge and information that can be turned into massive profits.
When our real estate market started to slow down, I wanted to put myself in a position to be able to buy as many homes as possible. This meant that I needed to have credit scores above 700. Right about this same time, I met Stephen Snyder, a credit score expert, in my mastermind group with Dan Kennedy. I ultimately ended interviewing Stephen and learned a great deal. During the interview, Stephen said that our credit scores determine the following when buying a home:
1. The interest rate
2. The amount of reserves you will be required to have
3. Your loan-to-value ratio
4. The amount of your down payment
It was easy for me to see that my credit score was going to be the key to unlocking a great deal of wealth during the down real estate market.
In preparation for my real estate investing plan, I checked my credit scores. I was shocked when I obtained my credit scores. They were lower than I had anticipated. Here is what they were on August 19, 2006:
Equifax 660
TransUnion 670
Experian 719
Stephen Snyder explained in my interview with him, that lenders base their decision on your "middle" credit score. This meant that lenders would be evaluating me based upon the 670 credit score. To have access to the best investor loans, my middle credit score needed to be above 700, if not higher. My lower "middle" score was obviously a problem. I honestly had not been paying attention to my credit scores.
This had been a BIG mistake. I vowed to improve my credit scores. I also vowed to pay attention to my scores going forward.
In my next blog post, I’ll explain what I did to improve my credit scores. You don’t want to miss it if your concerned about your credit scores, too!
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