Question : is getting credit repair a good idea if planning on buying a house?
how does credit repair work? is it a good idea if you have bad credit and want to buy a house.
- asked by vmorgan04
All Answers:
Answer #1
You should repair your own credit. Creditrepairing is a good idea, but you do not need topay a company for what you can do on your own.Tryvisiting this website, it has good tips on whatyou can do and some companies that can help:
http://credit.comWhen you go to buy a home,lenders look at everything-and I meaneverything.(I knew a person who was denied for a$15 phone bill in kansas) You need to pay off yourdebts, and keep your credit cards and otherrevolving accounts in good standing.Credit repaircompanies charge stupid fees for their servicesand sometimes do not work and you can go into debtover them. Get your credit report from all 3agencies. Dispute anything if necessary, and startmaking paymenst through the mail and the mail ONLYto your collectors. Also ask for a letter ofdeletion (have it removed from your creditaltogether)once you have paid it off. Your creditscore will slump that is why you need it deletedwhen you pay it-otherwise activity on an oldaccount is bad.Good luck, there are all kinds ofdeals for first time home owners and folks withbad credit. Problem is, they are stuck withvariable interest rates and that is the reason forthe forclosure's now. Mortgages have doubled ortrippled over a course of 2-4 years, that is a lotof $$. Try to go for a fixed rate, that way youwill know what your payments will be no matterwhat.
- answered by pamela L
Answer #2
Come on what makes sense to you? Good creditbegets you a home. Bad credit beget's you higherinterest rates, if a lender will talk with about aloan. So if you have a credit score less than 600,I suggest you work on it for 6 months, then trygetting qualified by a lender.
- answered by alterfemego
Answer #3
Yuor credit card can be both aboon and a curse.Itsvery cast to spend with a credit card and get inway over your head with credit debt.If you areplnning to buy a house oe not always safeguardyour credit.I am in real estate and have seenperfectly upright folks being denied a mortgagebecaause of an unpaid bill.First of all put a capon your spending.If you dont need it or the iitemis on sale dont buy,dont buy,dont buy. putblinders on and walk away.Dont go to the stores ormalls because you have nothing beter to do.One ofthe best and only way is to not be a shopaholic,leave your credit cards home.Instead of worryingabout repairing credit try and not get into debtin the first place.
- answered by angelguide
Answer #4
Virtually all of the credit repair people areincompetent unless they are attorneys whospecialize in the field.Yes, you should get theerrors on your credit report corrected.Most creditreports have a number of errors on them.I canguarantee you that you have errors on your creditreport that you do not even know about.The creditbureaus are some of the most error proneorganizations that I have seen in my life.I do notrecommend doing credit repair yourself.Theoretically you can learn to repair your owncredit, but theoretically you can also learn tooverhaul the engine and transmission in you car sothat you do not have to hire a mechanic.The creditbureaus tell you to repair your credit your selfbecause it is much easier for them to push youaround than it is for them to push your attorneyaround. The credit bureaus do not want to dealwith your attorney.I recommend that you talk to anattorney who specializes in real estate law for areferral to an attorney who specializes in creditrepair.The attorneys who specialize in creditrepair and are good at it generally rely onattorneys who specialize in real estate forreferals. In most cases the attorneys whospecialize in credit repair do not advertise tothe general public. My mid FICO score is 784because I have an attorney who specializes incredit repair. My attorney keeps the creditbureaus honest.I have been a victim of identitytheft on several occasions.I would not be able tomaintain my FICO score where it is without a veryaggressive attorney to deal with the creditbureaus and correct all of the errors that werecreated by the crooks who tried to steal myidentity.And I do not have the time or thepatience to do that myself. Repairing my creditagainst the identity thieves would be a full timejob for me, if I did not have my attorney doingthat work for me.Plus, a letter from my attorneyis much more intimidating to the credit bureausthan a letter from me.The credit bureaus hate itwhen my attorney writes them a letter.
- answered by Mike
Answer #5
NEVER USE A CREDIT REPAIR SERVICE. period. it islooked upon by lenders similar to a bankruptcy andyou will suffer in your rate and be restricted inyour loan program...if they will lend to you atall. there are ways to fix your credit withoutusing a liason. and...you dont have to payyourself to do it! LOL
- answered by Strawberry B*tchcake
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