BEST ANSWER
Jacqucm,
If you follow the advice from the last poster, you are in line for a considerable amount of disappointment. The negative information will likely disappear for the short term because the reporting creditor may not respond within the thirty day time limit. Instead, they will re enter that information to your credit file after that thirty day limit, but prior to closing and you'll find out when a legitimate, local mortgage lender pulls your credit once again just before closing which will likely cost you your earnest money.
A better strategy would be to pull your credit report using http://www.AnnualCreditReport.com and pull your credit scores through http://www.CreditKarma.com as suggested. Then challenge the negative entries that you know to be incorrect. Also look for multiple entries of the same account by different debt collectors. Debt collectors routinely buy and sell the same debt, but only the original debt collector may enter information on the debt to your file. I'd recommend challenging any debt that has been reported from multiple collectors.
I would also recommend that you disregard any accurate, negative entries that are older than two years old. Consider working out a settlement in writing with any current account holder reporting negative data to your file. Do not attempt a settlement over the phone because a written response will serve as your supporting data to be used with the credit bureaus when you carry out your end of the deal. Also, please do not attempt to settle with any creditor reporting negative data older than two years old.
Finally, leave any older, unsecured credit accounts open and consider a secured credit card. Please try to keep the balance on all of your credit accounts at less than one-third of the credit limit, pay them off every other month.
Following these strategies should get your credit back in shape very quickly, provided there are no bankruptcies or recent charge-offs.
Solomon Greene
REALTOR® / HUD-Certified Affordable Housing Counselor - Keller Williams Realty Atlanta Partners
Information deemed reliable, but not warranted.
Mon May 18 2009, 03:23
Fair Housing and Equal Opportunity