Move Forward
Remember now that you know how to be approved for credit you must build credit with a plan in order to qualify for an FHA home loan under today’s current FHA Home loans. It is crucial that you do not make avoidable mistakes as this will affect your buying power for years to come.
Here are a few last points of advice.
- Again, build with a plan. I recommend that if you are starting from scratch, your goal is to try to open three credit accounts and achieve 12 months of payment history (without late payments of course) in an 18 month period.
- Don’t make to many inquiries and applications.
- Don’t use more than 30% of your limit on any one credit card.
- Don’t pay off your credit cards. You should maintain a small monthly balance. This may not be the most prudent financial advice, but good advice for establishing your credit history.
- Try to establish a mix of installment and revolving credit.
- Don’t pay late.
These all affect your ability to qualify for an FHA loan and fit the credit profile of FHA Loan guidelines
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