Fix Bad Credit
In an era when it seems like many home buyers are plunking down bags of cash to make a home purchase, the bulk of home buyers still need to obtain a loan in order to complete their purchase. Typical loan programs require the borrower to put down between 10% and 20% of the total purchase amount as their down payment and then, for example, the 80% balance is the actual loan, what is known in California as the note.
Your ability to get a quality loan with a low down payment and a market interest rate is 100% tied to your credit score. An unpaid medical bill, or even a silly $40 unpaid bill can dramatically impact your score, which translates to you paying more each month for your loan. The average home buyer needs their credit score to be as high as it can be. This is where credit repair can come into the picture as a helpful tool to correct issues with your credit profile.
First and most importantly, credit repair is NOT a silver bullet. Like all business that cater to clients in some state of distress, the majority of credit repair companies are fly-by-night, take your money charlatans. If you decide to explore your credit repair options, keep in mind that there are certain items on your reports that are pretty indelible. Also, your lender will have a pretty good idea which items on your credit reports need to be addressed and can help you rank you credit repair goals.
The following credit items are healed by time. 1 in 1,000 credit repair attempts might get these items removed, but it's not the norm.
- state and federal tax liens
Who does a good job at Credit Repair?
Before we get into the who, be warned that credit repair efforts are not inexpensive and can take 3 to 6 months before results start to take hold. All of the credit repair companies have quick repair options, but they're even more costly. Lastly, of the three credit report bureaus, Experian is the slowest to take action.
The best advertised of the bunch is Lexington Law. They have several programs and levels available.
For a personalized approach, our clients have used and liked: Angela Setters of Conquer Credit. Angela can be reached at 818.530.0225