| Most people think - mistakenly - that if you have | | | | The first step is to get a copy of your credit |
| credit problems, you have to wait 7 years for | | | | report 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 to | | | | worth it. If you moved, changed jobs, and had |
| do it. The time to clean up your credit and pay | | | | any other personal info change recently, you can |
| off your debts is RIGHT NOW, before you start | | | | send 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 will | | | | NOTE: You are now entitled to one free credit |
| help you: | | | | report each year from |
| - get a better interest rate | | | | The next step is to circle or highlight the bad |
| - borrow more money | | | | credit items, and write a letter to each credit |
| - and save lots of money in interest | | | | bureau asking them to remove the item. If you |
| Clean Up Your Credit Report | | | | have 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 money | | | | It might take a few tries. |
| problems does NOT mean you can't get a | | | | But if you keep trying, eventually most (or all) of |
| mortgage and buy a house. There are all kinds of | | | | the items will be removed. |
| loans: | | | | In the worst case - even if you only get a few |
| - loans for first time homebuyers | | | | removed - it might still improve your credit score, |
| - loans for people with bad credit | | | | reduce your interest rate, and lower your |
| - loans for people with perfect credit | | | | monthtly payment! |
| - and loans for people without a lot of money for | | | | So don't give up. |
| a down payment | | | | It might take a little time to repair your credit - |
| So, most people can get a loan these days. The | | | | especially if you've had quite a few money |
| question is, HOW MUCH will you pay in the long | | | | problems. 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 goes | | | | money you can get. |
| on your credit report, that it must stay there for | | | | Then 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 business | | | | as 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 debt | | | | once you start having to pay a mortgage every |
| you might still be able to get a house loan) I | | | | month. |
| repaired my credit to the point that I got both a | | | | If you can't pay off your debt, you might want |
| car loan and a mortgage. More importantly, I got | | | | to consider waiting before buying your new home. |
| the LOWEST POSSIBLE interest rates, which | | | | Or, look into a debt reduction program that can |
| over the life of a 30-year loan could save me | | | | help 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 kept | | | | But think very carefully about your financial |
| writing letters asking the credit bureaus to | | | | situation. 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 bad | | | | to worry about as a new homeowner, without |
| stuff on my credit reports.) The worst that can | | | | having to worry about paying your credit card |
| happen is that the credit bureaus can say "no" to | | | | bills. |
| your request. The best that can happen is that | | | | At the very least, if you do have any debt, |
| your credit score will improve, and you'll pay a | | | | MAKE SURE you can comfortably afford to pay |
| lower interest rate, get a bigger mortgage, or | | | | your credit card bills as well as your mortgage, |
| both! | | | | before getting started! |
| So, how do you clean up your credit report? | | | | |