Open/Close Menu
Your Rental Housing Solution
Home · Property Management · Latest News : How to Skyrocket Your Real Estate Investor Credit Score

by Dennis Henson

Important Investing Fact: Credit Repair Can Increase Your Real Estate Investor Credit Score

Ignoring negative entires on your credit report or bad credit repair advice can easily lower your real estate investor score or cause added years of negative items to remain on your report.

For Real Estate Investors that all translates into a loss of money, because lenders, insurance companies and even mortgage companies are now increasing rates that they justify with slightly with your less than perfect investor credit scores.

Do-it-yourself bad credit repair is only intimidating to the uninformed. You CAN raise your score with the suggestions I have below. After showing other investors how to do it in the past you can bet that it really is more than just probable that you can raise your credit scores yourself, and correct negative items at the three major credit reporting bureaus.

79% Chance errors exist on your credit reports right now. And 25% of those mistakes are called “material errors” that are the cause of credit denied. Even if you think you have outstanding credit you still have 79% chance that there is an error on your report.

All this is researched by the Public Interest Research Groups in their 2004 survey of the three major American credit bureaus. Less harmful errors that may not get you denied credit, may work against you to lower your score sufficiently to increase the money you pay to borrow.

Read on and put these credit report tips into action yourself:

Repair Your Real Estate Investor Credit Scores Yourself the Right Way

There’s no need to be afraid of doing your own credit repair. The detailed methods below are what I teach other investors ngoing program you put in place to repair your own bad credit. Using the techniques below you can see a dramatic increase in your own real estate investor credit scores.

Why start today? Why is it important to work on it now?

Because raising your credit score to desireable loan levels will take some time. How long? That depends upon the negative reports in your credit reports and how much organized effort you put into correcting problems. Major improvments can be seen in a very short time.

However, a high investor credit score alone isn’t as important as it once was.. High investor credit scores are looked at differently today than just a few years ago. Now that the lending money supply is tight, lenders are naturally expecting to see high investor credit scores.

A medium to low score may mean an instant rejection, but a high score doesn’t always guarantee acceptance. The problem items on the three major credit bureau reports are scrutinized more than ever, so one old negative item may be used to significantly increase the cost of your loans.

Can You Clear All Negative Reports From All Three Records?

In some cases, yes, but the real truth is maybe. Most bad credit repair advice programs will tell you everything you want to hear in order to sell out-dated, rewritten material. The most serious damage from incorrect suggestions is that a simple mistep in a correspondence or phone conversation can be grounds for restarting the clock on a problem debt that was about to expire.

So it is possible to have negative entries removed, but some items may need to run their course. Even so, there are ways to lessen the damage those items have when a lender nitpicks over your credit reports.

Help Yourself Help Your Renters!

As you clean up your own credit reports and your investor credit scores have gone up, you can now help future and current renters repair their personal credit scores. Imagine a rent or lease-to-own scenario where you include assistance to raise your renters personal credit scores within the first year. Now these good tenants will more easily qualify for a loan to buy your house. That’s a definite win-win.

Easy Credit Repair Tips

Follow these easy credit repair tips:

1.Get Organized “ Disorganization leads to late or missed payments

2.Credit Reports “ Order credit reports from the top three credit reporting companies

3.Examine Your Credit Reports to look for discrepancies and any problems that you need to fix.

4.Common errors to most look for according to the U.S. FTC factreport: “expect to obtain a variety of alleged errors: incorrect report of late payment; multiple reports of an account with late payment; paid account reported as delinquent; closed account reported as delinquent; incorrect financial account reported (“not mine”); incorrect collection balance; incorrect collection account reported; multiple reports of an account in bankruptcy; chapter 7 accounts discharged but reported as delinquent, as well as further types of alleged errors. ”

5.Challenge Every Negative Entry
Once you challenge an item, the agency must verify each disputed item to insure that it is not a frivolous request. They must also return a response within 30 days unless you make this request over the internet.. That is one reason that every letter of dispute or challenge must be sent certified mail, return receipt requested. You need to know when they received your letter of dispute.

Watch the Calendar

If the reporting agency fails to respond in 30 days the item must be removed from your credit report. This is where keeping records is going be beneficial. If they do not respond on time, then you can write another letter and insist that the disputed item be removed.


Once you follow all of the bad credit repair advice that is laid out in this real estate training article, you need to make sure that you avoid any new negative entries. The best way to do that is to pay your current bills ahead of time. If you cannot pay before the due date, then find out what the grace period is on the bill and pay it before the grace period ends. Once a bill is 30-days late, it can be reported as delinquent.

Many highschoolers looking to the beginning of their financial life, could create a much nicer life for themselves if they only saw their credit as an important tool to respect. When every bill is paid on time for years, that person has created an opportunity to obtain better loans and substantially lower rates than their classmates who saw credit as a way to obtain more instant gratification beyond their financial means.

Dennis Henson is a full-time real estate investor, author and mentor in Arlington, Texas. He is president of Vanguard Marketing and Investments, Inc. and AREA real estate investors group.

Dennis has a B.S. Degree in education from Jacksonville State University and a Masters Degree in Education from Mississippi State University. He purchased his first investment property in 1971 in Georgia and has taken numerous courses by real estate gurus including John Schaub, Robert Allen, Carleton Sheets, Wade Cook, Russ Whitney, Dolf de Roos, Mike Summey, Roger Dawson, Bill Barnett, and many others.

Dennis Henson enjoys investing in real estate, helping people find and purchase a new home, working with new and experienced investors and advanced teaching real estate investing techniques. Many years of experience, constant study, and love for teaching have made Dennis Henson an excellent author and mentor.

This post provided by for creative real estate investors. Copyright 2002-2011 All Rights Reserved. Published with Permission of Author. No part of this publication may be copied or reprinted without the express written permission of the Author and/or

With AAOA, landlords have resources at their fingertips. Check out our Landlord Forms page.

American Apartment Owners Association offers discounts on products and services for landlords related to your rental housing investment, including rental forms, tenant debt collection, tenant background checks, insurance and financing. Find out more at

Copyright © 2004 - 2016 All Rights Reserved.