Applying for new credit before all derogatory items are deleted:
My advice to my clients is always the same: wait until you're done with your credit repair or credit sweep program, but have a strategy to move forward from there. Here's a few reasons why:
#1 you may be denied if you still have 1-2 items remaning and will end up with new inquiries that will drop your score
#2 it may hinder the process of removing the last few items and can add 1-3 months to the timeframe
#3 you may be approved with a very low limit and would have to wait 3-5 months prior to requesting an increase. In comparison, you can wait til everything has been completed and obtain a higher limit right off the bat.
Here's a real-life example:
I have a client would only has 4/86 negative items remaining and he wanted to move forward with his mortgage. I advised him to wait because (see #1) it would add inquiries and he may not be approved. He'd mentioned that they'd go off of his TU scores, which are the highest and so I gave him the report to bring to his meeting. Sure enough, he was turned down due to the 4 accounts and they ended up running him themselves as well. Inquiries + denial. If he had waited, his score would have been higher and the items would have been off (I project about only 30 days remaining on this file). He would have had a very high chance of approval based off of his credit report.
I coach my clients on rebuilding their files and assist them with organically building and other options (too many to list) when the time is right. This was jsut a good example of how jumping the gun can set you back when you're so close to financial freedom.
Contact us today to explore your credit options and see how our services can propell you to financial freeddom. Call 845-481-0780 or head to expertcreditsweeps.com!
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