Credit Score in Fort Worth>Question Details

roxanacastil…, Home Buyer in Fort Worth, TX

Whats the best way to clear and fix your credit?

Asked by roxanacastillo86, Fort Worth, TX Wed Mar 21, 2012

My husband and I are trying to find the best way to clean our credit so we can buy our first home. We hear alot of suggestions but really don't know which one to follow. Some people say to pay off the whole debt but then again some say to just pay payments. We don't know exactly which is the smartest way to go by. We know it will take time to do so but we are willing to do what ever it takes to get our family our dream house.

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13
Jim Simms’ answer
You need at least three open accounts with a 12 month history to generate a strong credit score. If you pay off accounts and close them it may pull your scores down.

The best way to fix or clear your credit is to make all of your payments on time. Keep balances low on credit cards, below 25% of the limit. Do not dispute accurate information that is correct, I know, the credit “experts” say that is legal, it isn’t. Lying about anything to get a mortgage is fraud. Altering a credit report is no different than changing a number on your W2, both are crimes if done in order to qualify for a loan. More info on this subject linked below. I hope it keeps you out of harm’s way, good luck.
1 vote Thank Flag Link Fri Mar 23, 2012
Pay all bills on time or early.
Pay down credit card debt to less than 50% of any balance.
If you have items on your reports that are not yours or incorrect dispute them.
If you have old small collections from cable bills, cell phone bills, apts, etc...pay them off and get a release from them. Get the release first.
That should be a good start.
1 vote Thank Flag Link Fri Mar 23, 2012
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
There are a lot of people claiming to be credit repair experts. Contact a Direct Lender and have them run your credit and they will tell you exactly what needs to be fixed. Get secured credit cards and use the for all your purchases and never make the minimum payments.
1 vote Thank Flag Link Thu Mar 22, 2012
Hi Roxana,

You really should sit down with a mortgage professional in your area to review your credit report because there's no way to give you accurate information without actually looking at your credit report.

Best regards,

Elva Wormley
C2 Financial Corporation
(408) 615-8500
1 vote Thank Flag Link Thu Mar 22, 2012
The best way to good the RIGHT answer is to straight to the "HORSES MOUTH".....a reputable lender. Find a LOCAL lender in the area in which you will be purchasing, make an appointment to go in and sit down for a face to face meeting. Lay all your cards out on the table, BE HONEST about your situation, and they should be willing & able to go over your situation and explain exactly what you need to do to clean your credit up and an approximate time frame that it will take you. It won't cost you one red cent to do that. IF they ask for money up front before helping you, they aren't the right resource for you.

Good luck.
1 vote Thank Flag Link Thu Mar 22, 2012
You can only get limited advice here since you cannot share the details of your financial situation on Trulia. One strategy is, of course, to choose a lender who will be helping you with the actual mortgage and with with him or her. It should not cost you anything (aside from the closing costs you will incur while actually buying real estate).

Clearing and fixing credit does not address the underlying reasons why your credit deteriorated in the first place. It is important to analyze what caused your credit to get worse in the past and to take steps to ensure it does not happen again (alter your spending habits, setting aside more money in the emergency fund, reducing your available revolving credit, etc). Some fundamental steps may actually contradict the "quick fix" or "window dressing" type steps, so you will need to find the golden middle there. Good luck!
1 vote Thank Flag Link Wed Mar 21, 2012
Hi roxanacastillo86:

I would suggest you talk to the experts. One place to start is with a good mortgage broker who can pull your credit report and make suggestions. In some cases there are short term fixes such as removing entries that were mistakenly added to your report or removing entries that should have come off a long time ago. I also suggest you talk to a HUD approved counseling service in your area. This will be a free service, so don't get involved with any company that wants your money. You can find a local service at: http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm

For some basic information about credit scores, I would suggest you take a look at this blog entry I possted a while back: http://www.trulia.com/blog/rovtar/2009/11/understanding_your…


Kind regards,
Ron Rovtar
Prudential Real Estate of the Rockies
Days: 303.981.1617
Evenings: 303.473.1926
ron@rovtar.com
http://www.rovtar.com
1 vote Thank Flag Link Wed Mar 21, 2012
The best thing to do is get in touch with a mortgage broker that is willing to give you tips and suggestions on what you can do to raise your score. Sometimes it can be something as simple as paying down a credit card or two. I work with a mortgage broker that has helped several clients to qualify within a couple months time. She doesn't charge for this service either. I would be careful if you decide to go through credit counseling that charges a fee. Tread carefully with who you trust. Contact a local real estate agent that you trust and can guide you on who to call.
1 vote Thank Flag Link Wed Mar 21, 2012
I can recommend you to one of the top mortgage brokers that I use. He can help you clear up the credit then get you preamp proved for the mortgage. The. I can help you find your dream home.

Give me a call for help today.

Chris Hutchinson
REALTOR
Chris Hutchinson Real Estate
The Michael Group
972.809.0607
http://www.chrishutchinsonrealeatate.com
1 vote Thank Flag Link Wed Mar 21, 2012
First, settle any outstanding debt. If you owe money on collection accounts, charge-offs and/or judgments, make payment arrangements and get these accounts paid promptly.

Next, begin rebuilding your credit. If you have current accounts with good payment histories, or even some previous late-payment-blemishes, make sure you continue to pay those accounts on time. If you do not have any existing credit accounts then you'll need to establish several in order to create a viable credit history.

I have found that CONSUMER ACTION is an excellent resource for objective advice on all things credit related. You'll find free and sincere advice on everything from settling collection accounts to rebuilding credit to building credit from scratch on their website. http://consumer-action.org/

Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams. Find more from the FTC HERE. http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre13.shtm


The best way to buy a home is to have a decent credit history combined with sufficient Income and Assets for a home purchase.

The best way to have a decent credit history is to settle negative outstanding obligations and pay all your bills on time for at least two years.


Trevor Curran
NMLS #40140
0 votes Thank Flag Link Mon Apr 16, 2012
Do not pay off old debt! you need to be very careful on dealing with old collections watch this for some help but even more important is to have 5 good bank credit cards with no late payment of over 10 years old so don't close old credit lines because you don't use them.. http://www.thecreditguy.tv/how-to-remove-collections-from-a-…
0 votes Thank Flag Link Tue Mar 27, 2012
I owned a credit repair company for 10 years SOLD the business HOWEVER I am now a consultant. Happy to assist you direct link
http://www.lynn911.com/Web/AR287090/CustomContent/index/5047511

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Wed Mar 21, 2012
First .. Talk to a good loan office who can run your credit report and who is willing to spend time with you going over what needs to be done.

Pay all your bill early or on time. Pay down the credit cards and and any other revolving depbt to the amount your loan officer suggest. And save as much money every month that you can.

If you end up needing the service of a credit repair company be very careful. Do not pay up front for services to be preformed. They should charge you after the work has started and be willing to spend time going over exactly what they will do and how much it will cost.

If you would like some referrals please do not hesitate to call or email.

Best of Luck .. Bruce Erickson, cell 214-213-6382
0 votes Thank Flag Link Wed Mar 21, 2012
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