Credit score understanding and manipulation are very important investment property loan elements.  Contrary to what the general population has been lead to believe, there are ways to significantly increase a score without having to wait for extended periods of time. 

There are companies that specialize in helping investors increase their scores. These companies range in cost from $40 a month, to a one time fee of $500 and average about 6 months to achieve significant results.  Since the FICO score is one of the most important keys to real estate investing, investors typically see these costs and services as essential to their success.

These companies basically use the system against the creditor, and in favor of the consumer- a refreshing change.  Just as the consumer is punished with a derogatory mark on their report if they make a payment late, a creditor is punished if it does not respond to a dispute in a timely manner by being forced to remove it regardless of it's validity.   By repeatedly disputing a derogatory account, the consumer places the burden on the creditor to validate it's information. If the creditor exceeds the time allowed by federal law to respond, it is mandated that the account be removed.

Investors typically should shoot for having 680 mid  FICO score, which is the middle score out of the three major credit bureaus.  A 680 will qualify them for the majority of investor loan products available. Their credit report must contain at least 3 accounts which have been open for six months or more, and at least 3-4 accounts that have been updated in the past six months. They should typically have at least 3 credit cards, with balances below 50% of the maximum credit available, but 30% of the maximum is optimal. They should typically try to hold on to older credit accounts, even if they are never used, as the older the account, the better, in terms of the FICO calculation.

Call IPL and one of our consultants will review your report and give you an understanding of where you are at now, and how you may be able to better position yourself to achieve a higher FICO score to help with your real estate investing goals.