Fixing Your Credit Score to Score a Mortgage

If you are looking to find a new home, but you have a not so stellar credit history, the chances of being able to finance that home with a mortgage are also less than stellar.  But there are things you can do to spruce up that credit score by fixing errors in your credit history.  Improving your credit score takes time, but it can be done.

The first thing you can do is pull your credit history from the three credit reporting agencies.  They are: Equifax, Experian, and TransUnion.  Then examine the information for errors.  If you find an entry that has incorrect info, like a late payment report that wasn’t actually late, then you have the right to dispute it.  Your credit score will not suffer if you dispute something on your record, have at it.

It’s best to write the agency in question a letter with a copy of your credit report attached.  Tell them why you are writing and point out the error.  The ask them to investigate further.  Be sure to keep every document you send them and they send you, along with the dates.  If you request investigation of an item on your credit report, and they don’t verify it’s accuracy within 30 days, then they have to remove it.

There are other things that you can do, also, that are more under your control.

First, make sure you pay your bills on time.  Set up a reminder system.  Some banks have such systems that email or text you that your payments are due.  You can set up auto-pay through some banks and credit card companies.  Doesn’t give you a sense of managing your money, but gets the job done.

You can help your credit score and get a real feeling of accomplishment if you use some of your disposable income to pay off some of your debt.  It’s not easy, but you’ll feel really good about and meet a goal at the same time. Focus on success!

If you have overdue bills, get current on your payments.  The trick is to remain current.  It involves fiscal discipline, but it’s worth it if you want to be able to take out a mortgage.  You can seek help from a financial credit counselor if you are having trouble making ends meet.  They may be able to negotiate a deal with your creditors.

A few other strategies include: paying off your debt rather than moving it to other credit cards, don’t increase your line of credit by opening a new card or close a card just to make the problem go away.  It doesn’t help.  Get your credit cards at least paid down if not paid off.  Keep your balances low so you have more credit available than you have debt.

There are other strategies out there, but these seem to be the ones most mentioned.  It’s a lot of hard work, but if your credit score needs repair, it’s probably worth it to get the loan.