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 â€œexpertsâ€ say that is legal, it isnâ€™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 harmâ€™s way, good luck.
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.
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.
C2 Financial Corporation
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!
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
Prudential Real Estate of the Rockies
Give me a call for help today.
Chris Hutchinson Real Estate
The Michael Group
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.
Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
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