Is your credit holding you back from buying a home?

Have you found yourself wanting to start looking for a new home but worried your credit score might not be up to the standard? Generally a credit score that is needed to get a home would start at 625. If you have a score below you may have a few of the following symptoms of the “credit blues”. Late payments, balances too high compared to credit limit, too many inquiries on your credit report, too much debt compared to your income, too many credit cards, or maybe you just haven’t had credit that long. Whatever the case may be there is a light at the end of the tunnel of your home buying dreams!

 

There are multiple ways to raise your credit score quickly. The easiest would be to become current on all of your cards and reduce the amount you owe on each account. This is usually a long process that can set you back months of waiting. Some people elect to open another card or get a big loan to put all of their debt in one place or “consolidate”. This may be a  good practice but it could entice you to put money right back on the cards you just paid off with your new loan or card. If you want results fast because you are tired of living at an apartment or with family then you might be interested to hear about credit repair companies.

 

Credit repair companies help by going through your credit report and fixing any errors they may find. This is important is because if you have an outstanding collection that you owe to a bank, they can sell your debt to another company and your credit shows that you have multiple late balances on the same debt. What a credit repair company will do is to contact the major credit reporting agencies and get them to correct your actual debts and to erase any multiple errors they may have. They can also figure out if you transfer some debt between your accounts you may have the same amount of overall debt but, your debt to credit ratio on each of your cards will be lower and this may raise your credit score quite quickly.  These are all things you can do yourself however, a credit repair company has trained professionals that scrub your credit and contact the credit reporting agencies in a quick and orderly fashion that saves you time and headaches.

 

If you are looking to purchase a home but need your credit score to be looked over, feel free to contact me and I can refer you to businesses that can help to put you on the right path!