How to Improve your Credit
If you ask any realtor "What is the biggest problem buyer's deal with?" Almost without exception, they will say that their clients having to overcome credit issues. In most cases, issues their clients didn't even know existed.
What do you know about your credit and most of all, do you know how to improve it? Here are some thoughts:
1. You can order your credit reports and scores online
You should know what the top three credit bureaus -- Equifax, Trans Union and Experian -- are saying about you. You really don't have to wait until you hear your Loan Officer say, "I'm sorry, it is your credit, you don't qualify for a loan right now". Here is what is true: It IS your credit and YOU should know what the reports are saying so that you DO qualify when you are ready to purchase.
2. Examine your credit scores and reports carefully
Almost every consumer has an error on at least one credit report from one of the major credit reporting agencies. My understanding is Credit Reporting Agencies receive information from your creditors and they do not necessarily verify the information. That means, you must do your own work and verify!
3. Remember to dispute anything and everything where you believe errors have occurred
A bad report costs you money so pay attention and be thorough! You can either complete the dispute on the form provided with your credit report or write a letter. The credit reporting company tells you how to make your claim against what is being reported.
Don't forget to keep copies and records of all the forms, letters and documentation that you send the credit agencies, plus dates sent. The credit company must investigate any relevant dispute within 30 days of receiving your letter. Any item that is not verified as accurate by a creditor is removed.
4. Get rid of debt
If you are serious about your credit, you will need to come up with a spending plan that reduces your debt and sets you up to pay on time, every time.
Call your creditors if you are having trouble paying your bills and negotiate to keep your accounts current and from being reported as "bad debt." Often creditors will work with you when they sense you are serious about doing the right thing with your bills.
5. Don't forget to save
Finally, open a savings account at your bank. This shows creditors that you are working to save and that you have reserves to repay debts.
I cannot begin to tell you the tears I've witnessed from clients when they have heard, "you don't qualify". Be nosey and get your report so that there are NO surprises when you go house shopping.