Just a few years ago credit was readily available and flowing like water to virtually anyone, regardless of their past credit mistakes. Fast forward to 2009 and the credit scene is remarkably different.
Thanks to the housing bust, and the financial meltdowns felt around the world, creditors are becoming very stingy when it comes to lending money. In other words, don’t expect loans, particularly mortgage loans, to be handed out without shining credit and a healthy down payment.
If owning a Las Vegas home is part of your long-term goals, then you will need to get a handle on your credit and begin repairing it now.
The following tips will guide you when repairing your credit:
- The very first thing you should do is order a copy of your credit report from the three, major credit reporting agencies: TransUnion, Equifax and Experian.
- Once you have these credit reports in your hand, you will need to review them with a fine-tooth comb. That means verifying that all of the information in the reports is correct, and then create a list of all outstanding debt.
- It is important to immediately contact the credit reporting agencies if any discrepancies are found. Rectifying these problems can often take weeks, or even months, so it is important to address any problems now.
- Once you have located all debts, key in on any that are past due. Pay them as soon as possible. You may also choose to contact the creditor directly and set up a payment plan, if necessary, to get the debt repaid in a reasonable amount of time.
- Your first and only goal from this day forward is to pay your bills on time every month, with no exceptions. That not only means installment loans, such as auto or personal loans, but other types of debts, as well, such as credit cards, student loans and utility bills.
- Work on decreasing your credit card debt and not acquiring any new debt. Work on paying off debts with higher interest rates first, and then working your way through your debts until all are paid.
Provided by the writing team of Richard Soto. Richard specializes in the Dallas Condo market. View Downtown Dallas Condos and Fort Worth Condos.
{ 3 comments… read them below or add one }
This is such great advice that everyone should follow - maybe they should instate a national ‘check your credit score’ day so people would be more aware!!
Shannon, that’s not a bad idea. I think that so many people are completely unaware of their score and how to improve it and it’s a detriment to the economy.
While this is great advice, I would add that should you decide to pay an old debt (over 2 years), that you work out with the lender an agreement in which the lender will remove this item from your tri-merge credit report (all 3 reporting agencies). Debts over 2 years old are usually written off and not usually included when a lender is making a decision on a loan, and contacting and even paying the debt will show as an open delinquent account and can actually lower your credit score. It’s a common mistake, but your FICO is based on the last 2 years payment record as well as public records, i.e. bankruptcy, tax liens, etc.