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. Here we’ll discuss 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 forgotten to record 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. Then trust your own bank balance, not the bank’s – 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. Your accounts 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 poor credit, and because of that, they charge much higher rates.

A ‘secured’ card also means that you will be putting 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 will 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% APR)….  And pay on-line by bank transfer, or mail a week early if paying by check. See to it your payment arrives at least a day or two before the due date… you don’t want to chance getting a $35-$40 late fee.

Just a note:  A $40 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 you agreed to. So 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 goal is 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 the holidays in your very own home!!

Sig photo2 8-18

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 is the hallmark of my success. So if you are looking for a true professional to help you buy or sell a home in the Greater New Orleans Area, please contact me. I look forward to woing with you. Certified 203k Specialist I am a certified FHA-203k Specialist - a program designed to assist buyers wanting to purchase distressed properties (hurricane damaged, repos, short sales) that require repairs or major 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)
This entry was posted in Finance & Credit Issues and tagged , , , , , , , , , . Bookmark the permalink.

22 Responses to Do-It-Yourself Credit Repair

  1. Kristofer Farrugia says:

    Useful information shared..Iam very happy to read this article..thanks for giving us nice info.Fantastic walk-through. I appreciate this post.


  2. Great information indeed. I’m the following to see some good comments!


  3. get rid of stretch marks says:

    Woah! I’m really loving the template/theme of this blog. It’s simple, yet effective. A lot of times it’s very hard to get that “perfect balance” between usability and appearance. I must say you’ve done a great job with this. In addition, the blog loads super fast for me on Safari. Superb Blog!


  4. Karie Bullers says:

    I like what you guys are up too. Such intelligent work and reporting! Keep up the excellent works guys I have incorporated you guys to my blogroll. I think it’ll improve the value of my web site :).


  5. Stanley Sankey says:

    Hello there! This post couldn’t be written any better! Reading through this post reminds me of my previous room mate! He always kept talking about this. I will forward this post to him. Fairly certain he will have a good read. Thanks for sharing!


  6. Toney Caluya says:

    I truly wanted to compose a simple message so as to say thanks to you for some of the nice tips and hints you are placing at this site. My long internet lookup has at the end been paid with brilliant strategies to talk about with my family. I would state that that we visitors are rather lucky to be in a fine community with many lovely people with useful opinions. I feel rather privileged to have encountered your entire webpage and look forward to plenty of more entertaining minutes reading here. Thanks again for everything.


  7. Rashad Emore says:

    Heya i’m for the first time here. I found this board and I find It truly helpful & it helped me out a lot. I hope to present something again and help others such as you aided me.


  8. oem hyundai parts diagram says:

    There is certainly noticeably a bundle to understand about this. I assume you produced certain nice points in functions also.


  9. pronto auto parts apw says:

    This internet web page is definitely a walk-through for all the info you wanted about this and didn’t know who to ask. Glimpse right here, and you will undoubtedly discover it.


  10. Pingback: Search Engine Optimization San Diego

  11. Pingback: Website Design San Diego

  12. download free says:

    I like this web site because so much useful material on here :D.


  13. Danuta Randel says:

    That is a great discharge. I’ll come back again later on to take a look at other posts that you have on your own website.


  14. 97 honda prelude performance parts says:

    I’m impressed, I should say. Really rarely do I encounter a blog that’s each educative and entertaining, and let me let you know, you’ve got hit the nail on the head. Your thought is outstanding; the issue is some thing that not adequate people are speaking intelligently about. I’m quite pleased that I stumbled across this in my search for a thing relating to this.


  15. low prices on car parts says:

    Great Post.thanks for share..additional wait ..


  16. fuel injection tuning says:

    Right after study a number of of the blog posts on your web page now, and I really like your way of blogging. I bookmarked it to my bookmark web site list and will be checking back soon.


  17. diamonesk rings says:

    Thank you for the sensible critique. Me & my neighbor were just preparing to do some research on this. We got a grab a book from our area library but I think I learned more from this post. I am very glad to see such magnificent info being shared freely out there.


  18. Pingback: Rent to Own, Lease Purchase, Owner Finance | St Tammany Real Estate Information

  19. Pingback: Free Credit Scores | St Tammany Real Estate Information

  20. mortgage approval process underwriting says:

    It is going to be easy for when you find yourself going to consider the loan.
    Mortgage financing is a very competitive industry with
    lenders offering various mortgages with various kinds of
    mortgage interest rates. They make research,
    understand the nature of leading lenders available inside market, compare the eye rates then match such options with the client’s specific needs related to refinance, renewal, purchase, real estate property investments, debt consolidation and a lot


  21. Pingback: Who is a Likely Buyer for a ‘Bond for Deed’? | St Tammany Real Estate Information

  22. air max españa says:

    Excellent web site you have here.. It’s hard to find
    good quality writing like yours these days. I really appreciate
    people like you! Take care!!


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s