Credit Repair and Credit Score
A good credit score can help you get approved for a mortgage loan or mortgage refinance, and save you thousands over the course of owning your home.
Likewise if you already own a home and have dramatic improvement in your credit score, refinancing to a lower rate that may not have been available to you can result in dramatic savings. Someone with an excellent credit score who has regularly paid their bills on time is considered less of a risk, so lenders and mortgage loan providers are more willing to grant credit to them – and at lower rates – than someone who has a history of not paying their bills or paying late.
Your credit report gives a sense of your creditworthiness in the eyes of mortgage loan and other lenders. It’s a record of credit activities with the credit that you’ve already had. For example, it lists any credit cards or loans you have had, the balances, and whether you make payments regularly. It also shows if any actions have been taken against you because you haven’t paid your bills.
You should regularly obtain a copy of your credit report to avoid any surprises. Mistakes in credit reports can be common and you should dispute them. By federal law, you are entitled to one free report annually from www.annualcreditreport.com. Your free credit report shows your open credit accounts, any payment irregularities and other credit information. What it does NOT do is show you your credit score, or the actual number many lenders use in deciding whether to give you credit and at what interest rate.
There are also agencies that will report your Credit Score, monitor your credit for you for a fee, and report to you any changes so that you may deal with them immediately by contacting the consumer credit reporting agency that reported the credit problem. It doesn’t cost anything to dispute, and might just a positive effect on your credit rating. You can request and get your free credit report and credit score online here.
While there are credit repair agencies that offer services to repair credit, your best bet is to improve your credit through a conscientious effort, and sticking to a personal debt repayment plan. We have gathered resources and knowledge here to help you, and with time and a dedicated plan it is possible to turn your credit score around.
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