3 Mistakes Not To Make When Repairing Your Credit
Repairing your Credit for Home Ownership
If you're thinking about purchasing a home soon but you know your credit could use some repairing, there are a few things you should avoid when getting started. Here are 3 credit repair “Don’ts” I think will be very important.
No. 1 – Don’t be so quick to pay off old debt.
Before you go paying off debt that has been on your credit for an extended period of time, speak with a mortgage professional or lender to find out if it is necessary to do so or not. Sometimes certain debts that have been on your credit for over 24 months may not be a problem after all. The same goes for old medical bills. Not all medical bills will keep you from obtaining a loan to buy a home. This is very important as you may be able to save yourself a great deal of money which can be used for purchasing the home itself.
No. 2 – Don’t pay someone to do what you can do yourself.
Most credit repair companies charge you a monthly fee to dispute what is on your credit whether it’s rightfully there or not. That is certainly something you can do yourself for FREE. It will, however, require some time and effort from you to make it happen. Be mindful of the fact that all of them will tell you that it will take some time to repair your credit and the more time it takes them, the more money they make. Again, that is money that can be saved and used for purchasing your home.
No. 3 – Don’t trust every person or company who says they can repair your credit.
Credit repair has become a big moneymaker and a lot of people are trying to get in on the game. Unfortunately, not everyone’s motives are genuine. If you feel it’s necessary to get some help, be sure to check out the person or company you're considering. Ask for referrals from people you may know that have received help in the past. And remember, not everyone with “Law Firm” at the end of their name has your best interest at heart.
These are just a few things I found to be huge money savers when it comes to purchasing your dream home. Stay tuned for more information on repairing your credit and other opportunities to help you get there.