Credit Coaching Plan: 90 Days of Work Before You Apply

What lenders look at

• On-time payments. The most recent 12 months carry the most weight.
• Card balances compared with limits. High balances on revolving accounts pull scores down, even when every payment is on time.
• Recent negatives. New late payments, collections and judgments.

Lenders use mortgage credit scores, which can differ from the score in a banking or credit app. Do not be surprised if the numbers do not match.

Who this plan fits

Anyone a few months to a year from buying or refinancing who wants their credit in better order first. It also fits people with very little credit history and people who were told their credit needs work but were not told what to do about it.

What to gather: your free reports

1. Go to AnnualCreditReport.com, the official free site, or call 1-877-322-8228.
2. Request all three: Equifax, Experian and TransUnion. Reports are free every week, and checking your own report does not lower your score. Save each one as a PDF.
3. Look for late payments, collections, high balances, accounts you do not recognize, and wrong names or addresses.
4. Found a mistake? Dispute it for free, directly with the bureau that shows it.

The 90-day plan

• Days 1 to 30. Turn on autopay for every account. Pay credit cards down. Many scoring models respond well when each balance is under about 30 percent of its limit, and lower is better. Keep old cards open.
• Days 31 to 60. Bring anything past due current first. Pay cards before the statement date so the lower balance is what gets reported. Ask before paying an old collection, because the order matters.
• Days 61 to 90. Pull your reports again, compare them with the first set, and bring both to a call for review.

The plan gives you practical steps. It cannot promise a specific score or a lending decision.

Common snags

• New credit. Until you close, do not open new cards, finance a car or furniture, or co-sign for anyone.
• Closing old accounts. Closing a card can reduce available credit and raise utilization. Accounts closed in good standing may remain on your report for years.
• Paying collections in the wrong order. Paying an old collection can change how it is reported. Ask first.
• Open disputes. A dispute still open when you apply can slow the loan down. Tell us about any you have filed.
• Paying for what is free. You can pull reports and dispute errors yourself at no cost. A HUD-certified housing counselor may offer free or low-cost help; ask about fees first.

Your next step

Pull your three reports and note anything you do not recognize. Bring them to a first call and we will help you put the items in order before you spend money on any of them.

When you want to talk it through, book a short phone call with Zak on Chris Lamm’s team at MortgageOne. No credit check is needed for a first call, and you can bring as many questions as you like.