How do you go about fixing your credit,( legally) so I can buy a house?

Answer 1

The best way to improve your credit score is.

1. Pay all bills on time. Late payments show up every single month on your credit rating.

2. Reduce your debt. If you have credit cards that are maxed out, you need to get them paid down. Paid off is even better. Always pay more than the minimum payment. Otherwise, you're in debt forever. All credit cards need to be down around 30% of your limit or less for it to improve your credit rating.

3. Don't apply for any more credit. Every time you apply for a card, there is an inquiry on your credit report. A lot of inquiries will reduce your credit score.

Get a copy of your credit report from www.annualcreditreport.com. Check it and make sure all items on there are yours. Look at any negative items and try to improve them. Go to the website below and there are some more tips for boosting your score.

Answer 2

I am a loan officer and have also worked as a mortgage underwriter. I would definately NOT work with a Credit Counseling company. You can do the same thing on your own without a fee. Also, most credit counseling plans are set up for quite a long time. It is very hard to get approved for a loan if you are currently in a credit counseling program. What people do not realize, is that by enrolling in these programs, when a lender sees that, they see that you are having problems paying your bills on time and are using someone else to do that for you. It actually shows that you are not responsible with credit. A lot of people will argue this, but I am just telling you what we look at from a lenders point of view.
Everything depends on your situation. Are you behind on your current bills or are you just trying to clean up some old things... this will make a big difference in how to go about fixing your credit. If it is current bills, then call each creditor and set up payment arrangements with them. This is basically what a credit counselor will do anyway... most creditors will work with you because they want to get their $$$$.... If it is old stuff, then yes, get copies of all 3 credit reports and start by disputing things that are incorrect ( you will probably have to dispute with each agency seperately).
Then call the creditors for the other bills. Ask them to work out a settlement agreement. Most will not remove these from your credit report or report them as paid, because they were your debts and a settled account is completely different than and account that has been paid. They should report that the account was settled for less then full balance. By doing this it will show that you have become much more responsible with your credit.
This is going to be a lot of work, but if you really want to clean up your credit this is the way to do it. Many lenders look at credit conseling as the same as a Chapter 13 Bankruptcy - it is the same concept...

Also - A good mortgage broker may be able to help you get approved depending on how bad your credit actually is... there are programs out there for people with imperfect credit. You will pay a much higher rate though.....

Hope all of this helps!

Answer 3

Start by getting a copy of your credit reports. In most states any debt over 7 years old is automatically written off and won't appear on your credit report. If you have some account/s in collection, then start with the one with the highest balance and ask for a settlement. Make sure that in the agreement that they either remove or state the debt is paid off. This must be done in writing, verbal agreements don't count in the court system since there is no proof.

Many states have non-profit organizations that will help you restore your credit and offer professional advice on how to do it.

Answer 4

Repair System Kit

Ask for copies of your credit report from TransUnion, Equifax, and Experian.

Scan your credit report thoroughly to look out for any errors or charges that you have not actually incurred.

Dispute any errors on your credit report with the concerned credit bureau immediately.

After the mistakes are rectified, begin saving money, while trimming expenses, raising your earnings and go on disputing any debts that you have not incurred.

Prepare a budget that accommodates your monthly installments, another budget that is as accurate as your debts and the last budget that caters to your survival needs, once you have cut down on the expenses.

Lastly begin paying your secured loans first, and then get a grip on your unsecured loans slowly.

If you use these steps as outlined, you will start seeing the results. The first step shows us where we are before finding our way out of our situation. Taking a snapshot of your report frequently can save your credit scores and ratings from damage caused by errors or identity theft.

Answer 5

First thing to do is get all three of your credit reports. You are allowed by law one free each year from each credit reporting agency.

Review your reports to make sure all of the information is accurate. dispute any inaccurate information. If you have any collections or delinquents on the reports, contact those companies and see if you can resolve those collections or delinquent accounts.

You might also consider going to a credit counseling service. However you need to be cautious when choosing one of these services. Many times they are just bill collections places that will take your money and not really help you repair your credit.

http://www.firststone.com

This company is FSCC United States Tresury government approved. They can show you how to repair and restore your credit.

Answer 6

You will need to talk to a credit counseling service. There are many non-profit groups that can take a look at your situation and help you get through the maze of forms and companies you will need to have to clear it all up. Good luck on that house!!

Answer 7

Alot of times a good Mortgage Professional will help you in fixing your credit because we work directly with the credit bureau. If you have documents that support items on your report that are reported wrong get them to a loan officer or call erquafax transunoin and experian directly and they will help you as well.

Answer 8

Well U can do it Ur self wish will take about 3 years
Or u can get a cheap company wish will take 2 years
Or email me and i give u the name of a company that will do it in 3-6 mouths...
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