Learn How To Fix Your Credit & Debt Problems - Before Buying Your Next House!

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