Three Simple Steps To Improving Your Credit Score When Buying A Home

Posted on: 5 January 2016

If you are in the first stages of thinking about buying a house, then the very first thing you should do is to get your credit score as high as you can. Your credit score will determine the type and amount of loan you are eligible for and how easy it is for you to get a house to begin with. There are three steps you want to follow when it comes to cleaning up your credit score. These steps include reviewing your credit report, cleaning up your credit, and maintaining it. This article will help you to take care of each step so you can see your credit score rise.

Reviewing your credit report

The first step is to review your credit report to look for incorrect information and to see what accounts you need to work on. You can get your credit report from all three reporting agencies once in a 12-month period for free. Also, you can join an online credit monitoring service that allows you to view your credit reports when you want.

Look at everything on your reports and make a note of anything that's wrong, including your personal information and your accounts. Write down the information for each wrong piece of information and gather any proof you have that shows how the information is wrong.

Cleaning up your credit report

The easiest way for you to work on cleaning up your credit is to hire a debt defense service to fight for you. They will make direct contact with the companies and work them to have false information removed from your report.

If you legitimately owe money then the debt defense service will work with the company to work out a payment plan that you can afford. They will also help put an end to the harassing phone calls and letters you may have been getting from the creditors you owe. Many times, the debt defense service will even be able to work out a deal with the creditors in which they will accept a lower amount than what you owe and will agree to remove the derogatory mark off your report completely once the debt has been paid.

Maintaining your credit

While you are trying to get your score up, it's very important that nothing else negative hits the report. This means you want to work hard on paying all your bills on time.  Also, you should try to keep the balance on your credit cards low and pay more than the minimum amount due each month on time. Don't apply for new credit while you are in the process of working on your credit.

By taking the steps in this article, you will be able to watch your credit score improve so you will be in a much better position to get a home loan that works well for you.


Figuring Out My Finances

For years, I lived on the edge of a paycheck. I was always running out of money, wondering when I would be paid next, and hoping for extra bonuses. Unfortunately, one day my luck ran out, and I found myself without a way to pay my rent. My landlord wasn't patient with me, and I actually got kicked out of my place. It was devastating and embarrassing, but I knew that there had to be a way to repair my finances. I met with a bankruptcy attorney to talk with me about my debts, and she was incredibly helpful. After seven years, I was able to completely correct my credit, and it has changed my life. Check out this blog to learn more about bankruptcy.

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