Home Loans ? Repair Your Credit Before You Buy

Before you take out a home loan or make any major purchase, you should be aware that any prospective lender will want to take a look at your credit report. Your credit report is a record of all of your past financial dealings, and any loans, credit cards, judgements, bankruptcies or other major financial transactions are listed there. Along with your credit report will come your credit score, which is a three digit number between 300 and 850 that represents a distillation of all of the above. That score represents your entire financial life, and your ability to obtain financing for any major purchase depends on having a good one. What if you don't have a good record? Should you go to one of those companies that promise to repair your credit? What you should do is repair it yourself.

The idea of credit repair is a myth. There is no magic solution to fixing problem credit, and any company that promises to do so is only interested in your cash. Your credit report and score are maintained by three separate credit bureaus that keep pretty accurate accounts of all financial dealings done under your Social Security number. There is no way to quickly "fix" a faulty credit report. You can, however, fix it yourself and fix it for free. It just takes time.

The way to repair your credit record is to start paying your bills on time and paying off your debt. More than one third of your credit score is determined by your past ability to pay bills and to pay them on time. Start doing so now. It may take a year or two, but steadily paying your bills without making any late payments goes a long way towards repairing a credit score. Another third of your score is determined by your ratio of debt to available credit. If your credit cards are maxed out, you need to pay off or pay down your balances. It's tough to obtain a loan when you are already in debt to the gills.

Stop using your credit cards, if possible. Don't cancel them; just stop using them, particularly if you have a balance to pay off. You want to reduce your debt. Pay cash when you can. And check your credit report for problems. You can obtain a copy for free from the free credit report Website.

Repairing your credit record takes time and discipline. There is no quick solution other than paying your bills, paying them on time, and waiting for the damage to heal. After that, you should be in good shape to obtain your home or car of your dreams.

©Copyright 2005 by Retro Marketing.

Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a Website devoted to debt consolidation and credit counseling information and HomeEquityHelp.net, a site devoted to information on mortgages and home equity loans.

---

Do You Know Whats On Your Credit Report ?

It is important to know your credit rating for a... Read More

Credit Card Entrapment - The Secrets are Out

Have you ever wondered why your credit card bill is... Read More

Have You Checked Your Permanent Record Lately?

As a young student I feared getting bad grades because... Read More

Credit Repair Kit Sound To Good To Be True? It Is.

A lot of people have bad credit. It is unfortunate... Read More

How To Get a Low Interest Credit Card

Consumers often have the first credit card that they ever... Read More

Credit Scores and Loan Applications

Keep Your Credit History Clean - Remove A Negative Credit... Read More

Why Credit Cards are a Bad Idea

Credit cards are just so convenient, aren't they? There's no... Read More

Credit Help For Renters And Others On The Horizon

Sue is a homeowner and pays her mortgage and other... Read More

The Ghost of Expected Surprises

Here, Cratchet, what do you think you're doing?Uh, er, leaving... Read More

Do you Know the Benefits of Checking your Credit Report?

Do you know why you should check your credit report?Of... Read More

Identity Theft - Dont Think You Are Immune

As identity theft becomes more prevalent, the need to regularly... Read More

How Businesss Mess Up Their Credit Policies

In "Become the Squeaky Wheel" a book recently published, Michelle... Read More

Credit Report Disaster Through Mistaken Identity

I've got some very important info I want you to... Read More

All About Balance Transfers

What is a balance transfer?A balance transfer can be explained... Read More

Credit Repair Scams

"Erase Bad Debt !""Remove Negative Items From Your Credit Report"You've... Read More

Various Types of Credit Cards - Part 2

Several different types of credit cards offer several different options,... Read More

Credit Card Traps: How To Spot Them On The Spot!

They arrive in your mail - a conspicuous looking mail... Read More

How To Get Out Of Credit Card Debt

If you're like the average person, let me warn you... Read More

10 Ways To Protect Your Financial Identity Being Used For Someone Else?s Shopping Spree

Someone impersonating you could be spending your hard-earned money.Impossible! Not... Read More

How did a Thief get my Name? Don?t be a Victim of Identity Theft

How do these people get my name? If you have... Read More

Update Your Computer System With Bad Credit Computer Financing

The moment I placed myself in front of the computer... Read More

Identity Theft : They Got Him

His hard earned money? Gone. Creditors on his back everyday.... Read More

SuperCharged Secret 2, Credit Card Utopia

INTEREST BEWARE, THERE'S SAFETY IN NUMBERS!Note: The following is part... Read More

Ethical Finance: Who Benefits From Our Spending?

On one hand consumers are being universally criticised for running... Read More

Figuring Out the Ever Nebulous Numbers Called Credit Scores

Credit Score FactorsThe information contained on our credit reports affect... Read More

Collection Agencies: What Do They Do?

Collection agencies are businesses that collect past-due bills and accounts... Read More

Bad Checks, Bounced Checks, & NSF Checks

Negotiable instruments like checks and drafts have become an indispensable... Read More

Credit Counseling Basics

Credit counseling is an option you might want to consider... Read More

Free Credit Reports Now Available From the FTC

The Federal Trade Commission (FTC) has set up a new... Read More

Learning the Disturbing Facts about Credit Card Debt

When I received my first credit card in the mail... Read More

Identity Theft ? Who Would Want Mine?

With all my bills who would possibly want my credit?... Read More

Bad Credit Credit Cards

Chances are you've gotten your share of offers like this... Read More

How To Choose Your Credit Card Application

The articles and tips provided on this site are intended... Read More