Repairing your credit

If home ownership is one of your dreams; however, your credit is not the best.  Following are some tips to help you repair your credit and move you on your way to home ownership.

Check your credit report – Credit score repair begins with your credit report.  If you have not already done so, request a copy of your free credit report and check it for errors.  If you do find errors, report them immediately to the credit bureau and reporting agency.

Set up payment reminders – Making payments on time is one of the biggest contributing factors to your credit score.

Reduce the amount of debt you owe – The first priority with this step is to stop using your credit cards.  Next would be to establish a payment plan to start reducing this debt.

Payment history tips – Pay your bills on time.  If you have missed payments, get current and stay current.   The longer you pay your bills on time, the sooner your score should increase.  Be aware that even though a debt is paid it still remains part of your credit score.

Credit balances – High outstanding debt can affect a credit score.  Don’t close unused credit cards as a short-term strategy to raise your score.

Future accounts – Please know that just by closing an account does not make it go away.

If you are having more complicated issues than originally thought, contacting a credit counselor is your next step as they are the experts.

 

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