Budgeting Credit Repair

Credit Repair – The Basics

In most cases, purchasing a home involves obtaining a mortgage. To qualify for the amount needed for the home you desire and the best rates, you will need a solid credit score. This number will vary from case to case, but no matter what the number, it never hurts to improve your current standing. We’ve put together a few tips that you can implement today—so you can start working towards repairing your credit and achieving your goals.

  • Check Your Credit Report – Check your credit report (often). It can surprise you, but mistakes occur OFTEN. Finding those mistakes and having them fixed can help you make fast improvements to your credit score. However, this does take time. If you anticipate purchasing a home anytime in the future, you want to begin finding and treating these concerns right now.
  • Reduce Debt – While it can be scary to spend your savings, in many cases it can make sense to pull from your savings account to pay down your debt. Talk to a trusted financial advisor to find out if this would make sense for your particular case. If this isn’t a possibility, look at debt consolidation or paying off high-interest loans to improve your financial picture.
  • Get Current – Being current on all your bills has a huge influence on your credit score. If you are behind, get on the phone with your creditors and find out what it would take to bring your accounts up to date and make it happen. Many companies are willing to work with you—if you are prepared to put the work into the process too.
  • Choose Credit Responsibly – It’s important to have credit to build credit. You have also probably heard that you do not want to close any existing accounts. At the same time, it is important not to overdo it. Too many cards can cause a whiplash effect. It is important to talk to an expert, especially if you plan to buy a home shortly.

For many, repairing problem credit is a significant step towards qualifying for a home loan and buying the home you have always wanted. If you would like to learn more about the home lending process and talk to an expert, reach out to us at Liberty Financial. We look forward to helping you achieve your dreams.