Last year I met with clients to do a refinance. At the time they were behind on their credit cards and a refinance was not possible, so we discussed what they had to do to improve their credit scores.
Last week I got a call from Lester again saying they were ready to get their refinance done. That they had their credit cards right up to date. I gave him a list of everything I would need them to bring and set up a date and time to meet.
It never occurred to me that the credit would be worse than the last time around. He was correct, the credit cards had been paid perfectly, the problem and I mean the big problem, they had been paying the mortgage payment 30 days late for the last 4 months.
I called Lester back to cancel our appointment, he seemed a little surprised saying that he thought it was always best to pay the credit cards on time. I told him we would have to wait at least 12 months and hopefully if ALL payments are made on time, that the credit scores will have recovered enough to get a refinance done.
Remember, mortgages first, car payments second, installments debts next and then credit cards in order of importance, but for excellent credit scores ALL need to be paid on time.
