Conflicting advice from mortgage broker

Date: Mon, 03/05/2012 - 08:24

Submitted by royalpain78 on Mon, 03/05/2012 - 08:24

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My husband and I are leasing a home with the option to buy it in the next 3 years. We are hustling to get our credit in order and consulted a mortgage broker who looked over our credit and gave us some advice, but some of it conflicts with what I've been told before, what I've read, or what I've seen posted here. For example, I have a credit card with a $400 limit that I got in November (by a miracle) and I use it each month for things I would buy anyway (gas, milk, etc) and then pay it in full each month either in one lump sum - OR I pay half of it with one check and then half a couple weeks later with the next check. I'm only using it to build credit and never put on it more than I know will be available to pay it off. Now, the broker said that I should leave 20% of the available credit on it and NOT pay it in full each month - he said that I should charge it up 20% ($80) and then each month, charge only $10-$20 more and then pay off that $10-20 ONLY. He said this is the fastest way to boost my score.

Which is correct?

Total Replies: 3

In my opinion, its better to stay current on your payments at al

In my opinion, its better to stay current on your payments at all times. That is how you maintain and improve your credit score. A creditor would send a negative report to the credit bureau if you fall behind on your payments.

Submitted by StevenDoyle on Mon, 03/12/2012 - 02:22

StevenDoyle

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I think you misunderstood. I have heard that you should only

I think you misunderstood.

I have heard that you should only use 20% of your available credit and pay 20% above the minimum payment each month.

If he was advising you to pay less than the minimum, find a new broker.

Submitted by ioalot on Fri, 03/16/2012 - 10:46

ioalot

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The best option would be to use your credit card when you need i

The best option would be to use your credit card when you need it and make sure to pay off the outstanding balance on time. This will help you boost your credit score and become credit worthy soon. Try to avoid making late payments and missing out your payments since this will only hurt your credit score. At the same time, keep adding positive information on your credit report.:)

Submitted by kate.kelley12 on Tue, 03/20/2012 - 02:02

kate.kelley12

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