A “Quick Fix” for Credit Scores Not the Path to a Home Loan


Repairing your credit before attempting to buy a home is a wise idea. Not only do you need a minimum score in order to qualify, a higher score will enable you to obtain a lower mortgage interest rate.

In their eagerness to get this done, many consumers have been lured by the quick fix offered by credit repair companies. Unfortunately, their method temporarily raises your score while at the same time making you ineligible for a mortgage loan.

Here’s why: In order to raise your scores, credit repair companies routinely place a dispute on every one of your credit accounts.  This action places an “XB” notation on that account and removes it from consideration in scoring your credit.

If your revolving debt was too high, or if late payments or default was dragging down your scores, suddenly they’re gone and your FICO score goes up.

The Fair Credit Reporting Act gives you the right to challenge information on your credit report, and that’s good. You should challenge an account that is in error, and errors do happen. You could have an account showing up on your credit that isn’t even yours, or you could be being billed for recurring charges for a service you no longer receive.

You should NOT use the challenge as a false method of raising your credit scores, for the simple reason that it will backfire.

When mortgage lenders see a credit report with XB notations, they see a red flag, telling them that the score is inaccurate because the report is ignoring potential liabilities. Thus, Fannie Mae and Freddie Mac both consider a credit report with XB notations to be invalid.  “XB” is a sign that the account is under investigation, so the bank will not even consider processing your home mortgage loan application until the dispute has been resolved or removed.

If you’re preparing to purchase a home and need to raise your credit scores, take a safer path.

  • Begin paying down your high credit balances.
  • Pay every account ahead of the due date.
  • Refrain from taking on any new credit.
  • If you’ve had late payments, get caught up.

For more tips on improving your credit scores safely, visit the CreditScoreQuick.com blog. http://www.creditscorequick.com/blog/

As with many things in life, a “quick fix” in credit scoring is not a solution.


Mike Clover

Mortgage Banker

Homewood Mortgage,LLC

O: 469.621.8484

C: 469.438.5587

F: 972.767.4370

18170 Dallas Parkway

Ste. 304

Dallas, TX 75287

NMLS# 234770

Apply at: www.mikeclover.com

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