Do-It-Yourself Credit Repair


Have you had a bankruptcy in the past? Had debts that went to ‘Collection” and were written off? Do you think because bill collectors don’t call anymore, it’s all forgotten?

Wrong!!  Not only is it not ‘forgotten’, you have to face it and work through it if you ever want to buy a home. Read more for ideas that have worked for others.

Although every buyer who is turned down because of credit has different issues, some things remain the same. And in general, the following plan applies to just about everyone.

First, every grown-up should have a checking or savings account and NEVER let it get overdrawn. Keep a manual check register up to date and every week, go on-line to your bank to make sure you haven’t missed recording a check or debit card purchase. In fact, keep the debit card in your check book so you can record purchases as they are made. Trust your own bank balance, not the bank’s balance – their numbers will not include checks that may still be in ‘float’.

Second, get existing bills paid up to current and keep them current. This takes living within your means – and that takes discipline. This is critical.  A mortgage lender doesn’t want to hear an applicant’s excuses for why payments were behind. They must be kept current!

Third, if you do not have a credit card, get one. If need be, you can get a ‘Secured’ Credit Card through a number of banks – Capital One, and Orchard Bank to name two. They issue cards to folks with less than perfect credit, and they usually have higher rates.

A ‘secured’ card also means that you will have to put up your own money against which you will make purchases. So why would you want to do that?  Because every month you will now have a report going to the credit bureaus showing your ‘new-improved’ payment history – and that is what helps build up your credit score.

PLASTIC CARDS ARE NOT FREE MONEY!!  Use your credit cards minimally (maybe just for gas purchases) and pay them out IN FULL every month so you avoid those outrageous high interest charges (as high as 30%)….  And pay on-line by bank transfer, or mail early if using checks. See to it your payment arrives at least a day or two before the due date… you don’t want to chance incurring a late fee.

Just a note:  A $39 late fee is tantamount to pulling two $20 bills out of your wallet and lighting a match to them. And for what? For being a day or two late with your payment? But those are the credit card rules. Be careful!!

In short, repairing your credit is possible and can be done in a relatively short time… but it takes total dedication and tunnel vision when it comes to your finances and buying habits.

It may even help to know that you are not alone. For example, some people work strictly on commission. They know ahead of time that during certain months, sales slow down and money gets tight. In times like that, these folks need to cut back on non-essentials. It’s not the time to go out and run up the credit cards!

And finally, months prior to buying a home, do not take on any new debts or make a major purchase (like a car)…  every credit inquiry shows up on your credit report and can push your score down.  And a major purchase affects your debt to income ratio. (That’s another topic.) Remember – you’re on a quest to repair your credit so you can buy a home.

So make a plan for yourself. Stick to it. And by all means, stay in touch. My newsletters will keep you up to date with what is happening in the home buying market. And hopefully by this time next year you and your family will be celebrating holidays in your very own home!!

Sign up for your FREE e-Book, “ONLY 8 STEPS TO HOME”

About Joyce Albert

Why you need a Real Estate Consultant, not just another Agent… The difference between a real estate agent and a real estate consultant is the difference between someone who just wants to make a sale, and a professional who is willing to share with you their in-depth knowledge of the market in order to help you navigate one of the largest financial decisions of your lifetime. In my career as a real estate consultant, putting my clients first has been the hallmark of my success. I will always make myself accessible, be a good listener, and respond quickly to your needs. So if you are looking for a true professional to help you buy or sell a home in the Slidell, Mandeville, or Covington areas, please contact me. I look forward to working with you. Certified 203k Specialist I am a certified FHA-203k Specialist affiliated with the Re-buld USA program.- a program designed to assist buyers wanting to purchase distressed properties (hurricane damaged, repos, short sales) that require rehab. Accredidations -  Accredited Buyer Representative (ABR)  e-Certified  Short-Sale & Foreclosure Certified (SFR) Other Memberhips. . .  Louisiana Association of Realtors  New Orleans Metropolitan Assn of Realtors (NOMAR)  Gulf South Real Estate Information Network  National Assn of Realtors (NAR) of Realtors (NAR)  Real Estate Board of Accredited Buyer Consultants (REBAC)
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