Although some "credit repair artists" claim differently, you can't change history. If your credit report has no errors, and it says you have had issues in the past, there is nothing that will change it. That leaves two things you have the power to fix, present and future.
If you are behind on a bill or two, fix it. Pay the bills current. If that means you have to make a few temporary life style changes, fix it anyway. If you need a new car because the old one is broken, fix it. It's cheaper to fix the old one than to saddle yourself with debt for the next five or six years. The cost of a new engine or transmission is equal to around six or fewer payments on a new car.Why exchange six payments for sixty?
Better credit scores have more benefits than just being able to get a loan for a new home. The interest rate may be lower with a better score. Your auto and homeowners insurance rates may be influenced by your credit rating. Even life insurance rates could be affected by your credit history. Your bank card interest rate may be influenced by your credit rating. Your potential employer may use your credit report to decide whether to hire you.
The evolution of credit reporting to a standardized system of evaluation, along with the ease of obtaining the information, have increased the importance of having good credit. Bottom line is that it's a lot cheaper to have good credit, even if you don't want to take out a new loan.
If you're thinking about buying a new home in the next year, call me. I'll refer you to a financial expert who will help you evaluate your chances for getting the most desirable rate on mortgage financing. If you want, I'll also schedule a home buyer's orientation with no cost or obligation. We'll discuss the market, the risks and rewards of buying foreclosed property and short sales, the benefits of owning vs. renting, and the importance of obtaining a written commitment from a real estate agent to advocate exclusively on your behalf. Call me now.
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