Can you still get a mortgage with bad credit?
March 8th 2008 12:45 pm
Now that there are so many mortgage defaults and foreclosures
mortgage lenders have raised the credit requirements for loans
with less than 20% down.
This means that a lot less people will be able to qualify for
a home loan as of 2007.
What is the real cost of bad credit?
Higher interest rates and larger down ayments if you can get someone to give you
credit at all.
How long before your credit improves on its own?
An average of 7-10 years for the negative credit to come
off IF the account is not sold to another collection agency
and if the credit bureaus remember to do it.
What can you do to remove bad credit and increase your credit
scores?
You can try to do it yourself by following these steps
1.Get a copy of your credit report from all three credit
bureaus. By law you are eligible for a free credit report if
you were recently denied credit.:
Equifax Credit Information Services, Inc
P.O. Box 740241
Atlanta, GA 30374
1-800-685-1111
www.equifax.com
Experian Credit Information
P.O. Box 9532
Allen, TX 75013
1-888 397 3742
www.experian.com
TransUnion
P.O. Box 2000
Chester, PA 19022
1-800-916-8800
2.The second step is to check your credit report for
inaccurate information; such as: Collections or debts which
have been paid and never updated.
You may also check for inaccurate charge amounts and
duplicate items. These are common mistakes made by the
credit agency and or the creditor. If you are aware of any
mistakes, dispute the information with the credit bureau
immediately.
Be sure to send the dispute by certified mail in order to
track who you sent what to and who received the dispute
and when.
They will perform an investigation and have the information
updated within 30 days.If they find errors and remove them
you can request that they send a corrected report to anyone
that requested your report in the last 6 months.
3.If you have accounts that are in good standing such as
buy here pay here car dealers but are not being reported
you can have those added to your report.
4.Stop using your credit cards immediately. Put them somewhere
where they will not tempt you. You may consider keeping at
least one card for emergency purposes.
Additionally, with poor credit, you may find it more
difficult to get a credit card in the future. If you keep
at least one account open, then you won’t have to worry about
applying.
5. Talk to these Creditors and you will see that they may
work with you and even reduce your payments: just make sure
that whatever you agree to pay, stick to it and they will
not report you to the bureaus.
Even if they do not remove everthing the first time you can
still try again.
6. There are legitimate law offices that work wthin the
credit reporting act guidelines to help you remove items
whether they are correct or not.
To repair my bad credit I used a law firm that was very inexpensive and my scores went from 540-704 within a few months and I was able to
refinance my auto loan from 16% down to 10% interest rate.
A few months later I was able to qualify for a mortgage
to buy a house at a rate that saved me 250.00 per month from what I would have paid with the low scores.
Remember that credit is very important in this country and
good credit has become even more important if you want to
live the American dream of homeownership.
Reccomended Law Firm for Inexpensive Credit Repair
or call 800-636-0268 and use id #10739
How To Buy A Home With No Money Down and No Credit
The
Ultimate Real Estate System-Click Here
great step by step advise on how to improve one’s chances of getting a mortgage with bad credit. so from what I can see, these steps are designed to give a quick boost to the credit score, therefore improving the chances of getting the loan.
dave from free annual credit reports (1 comments.) on 27 Jun 2008 at 6:14 pm #