| Most people think - mistakenly - that if you | | | | |
| have credit problems, you have to wait 7 | | | | So, how do you clean up your credit report? |
| years for them to go away. Well, that's not | | | | |
| always true. | | | | The first step is to get a copy of your |
| | | | credit report from the 3 credit bureaus, |
| Credit repair can help you...once you know | | | | listed below. You might have to pay a few |
| how to do it. The time to clean up your | | | | dollars, but it is well worth it. If you |
| credit and pay off your debts is RIGHT NOW, | | | | moved, changed jobs, and had any other |
| before you start looking for houses and | | | | personal info change recently, you can send |
| applying for mortgages. Cleaning up your | | | | it to the credit bureaus, and request a free |
| credit and lowering your debt will help you: | | | | copy. |
| | | | |
| - get a better interest rate | | | | NOTE: You are now entitled to one free credit |
| | | | report each year from |
| - borrow more money | | | | |
| | | | The next step is to circle or highlight the |
| - and save lots of money in interest | | | | bad credit items, and write a letter to each |
| | | | credit bureau asking them to remove the item. |
| Clean Up Your Credit Report | | | | If you have a lot, focus on one or two at a |
| | | | time. |
| These days, getting credit is easy. | | | | |
| Unfortunately, so is getting into debt or | | | | Then, wait a month or two, and ask for |
| financial trouble. | | | | another one or two items to be removed. |
| | | | |
| But just because you've had some money | | | | It might take a few tries. |
| problems does NOT mean you can't get a | | | | |
| mortgage and buy a house. There are all kinds | | | | But if you keep trying, eventually most (or |
| of loans: | | | | all) of the items will be removed. |
| | | | |
| - loans for first time homebuyers | | | | In the worst case - even if you only get a |
| | | | few removed - it might still improve your |
| - loans for people with bad credit | | | | credit score, reduce your interest rate, and |
| | | | lower your monthtly payment! |
| - loans for people with perfect credit | | | | |
| | | | So don't give up. |
| - and loans for people without a lot of money | | | | |
| for a down payment | | | | It might take a little time to repair your |
| | | | credit - especially if you've had quite a few |
| So, most people can get a loan these days. | | | | money problems. But every little bit helps |
| The question is, HOW MUCH will you pay in the | | | | your credit score, your interest rate, and |
| long run for higher fees and interest rates? | | | | the amount of money you can get. |
| | | | |
| A lot of people think that if something bad | | | | Then Pay Off As Much Debt As Possible |
| goes on your credit report, that it must stay | | | | |
| there for 7 years, or longer. But that's not | | | | I know, when preparing to buy your new home |
| always true. Credit repair can work, if you | | | | money is real tight. But if you have any |
| know how to do it. | | | | extra money - any at all - try to pay off as |
| | | | much debt as possible. This will help you: |
| And, you can do it yourself. | | | | |
| | | | - Be more likely to be approved for a |
| For example, I had lots of debt (from a | | | | mortgage |
| business idea that did not work) and got a | | | | |
| lot of bad credit listings while getting | | | | - Be able to borrow more money |
| myself out of debt. | | | | |
| | | | - Have one (or more) less bill to worry about |
| And within 6 months of paying off my last | | | | once you start having to pay a mortgage every |
| credit card bill (remember, even if you have | | | | month. |
| some debt you might still be able to get a | | | | |
| house loan) I repaired my credit to the point | | | | If you can't pay off your debt, you might |
| that I got both a car loan and a mortgage. | | | | want to consider waiting before buying your |
| More importantly, I got the LOWEST POSSIBLE | | | | new home. Or, look into a debt reduction |
| interest rates, which over the life of a | | | | program that can help you get out of debt |
| 30-year loan could save me tens of thousands | | | | faster. |
| of dollars! | | | | |
| | | | There are no rules that say you can't have |
| How did I repair my credit? | | | | some debt and still buy a house! |
| | | | |
| I got a copy of all my credit reports, and | | | | But think very carefully about your financial |
| kept writing letters asking the credit | | | | situation. And TRY to pay off as much debt as |
| bureaus to remove the bad credit. | | | | possible before buying a house. There is |
| | | | enough to worry about as a new homeowner, |
| So it CAN be done. (And I had some pretty bad | | | | without having to worry about paying your |
| stuff on my credit reports.) The worst that | | | | credit card bills. |
| can happen is that the credit bureaus can say | | | | |
| "no" to your request. The best that can | | | | At the very least, if you do have any debt, |
| happen is that your credit score will | | | | MAKE SURE you can comfortably afford to pay |
| improve, and you'll pay a lower interest | | | | your credit card bills as well as your |
| rate, get a bigger mortgage, or both! | | | | mortgage, before getting started! |