Post by iwantahouse on Mar 2, 2015 20:16:40 GMT -5
Has anyone sought someone to fix their credit. My husband and I both have scores in the 550s. A friend of his is a real estate agent and recommended someone to fix our credit so we can buy a home in the next year. She charges a few hundred dollars and says she can raise our score 100 PTs in 3-6 months.
I'm pretty sure this is a scam, unless you have misinformation on your credit report, the only way to fix your credit is on time payments (time) or reducing debt/credit ratio
Post by iwantahouse on Mar 2, 2015 20:46:38 GMT -5
I'm not sure what all this entails he just mentioned it in passing over the weekend. I personally don't have a lot of credit lines I have a car that will be paid off in November if not sooner. My biggest issues is medical debt from being in my 20s and irresponsible.
I'm not sure what all this entails he just mentioned it in passing over the weekend. I personally don't have a lot of credit lines I have a car that will be paid off in November if not sooner. My biggest issues is medical debt from being in my 20s and irresponsible.
Yea, there really isn't any way to fix that. Unless it was over 7 years ago and then you don't need to pay anyone to get rid of it..
A lot of mtg companies can help you for free as they are not allowed to charge for that kind of service. We use a company called credit repair. We run your credit and send it in to the company which in turn advises ina short term and/or long term plan to increase your score. What your friend advised sounds like a scam to me. A lot of those places will just dispute all the derogs to temporarily take them off your credit. However a good underwriter will catch these disputes. This temporary, false boost is considered fraud if a decision to extend credit is made based on the srtificial score.
Do NOT pay someone for this. They won't do anything you can't do.
Have you checked your reports? What date is the medical debt supposed to be removed? Are the accounts now paid in full?
I have checked it recently. The medical debt wasn't paid in full. I was very irresponsible in the past and quit making payments. The accident that caused the debt happened 7 years ago so I think it should be soon.
When things fall off it doesn't necessarily improve your score right. Sorry I'm not the most educated when it comes to this. Should I try to get a secured credit card through my bank?
You can do this without paying anyone. All you need is google ( for address, letter templates to send to the agencies) and time/patience. H raised his and his mothers score significantly ( one was lower than yours) in about that same time frame.
Do NOT pay someone for this. They won't do anything you can't do.
Have you checked your reports? What date is the medical debt supposed to be removed? Are the accounts now paid in full?
I have checked it recently. The medical debt wasn't paid in full. I was very irresponsible in the past and quit making payments. The accident that caused the debt happened 7 years ago so I think it should be soon.
When things fall off it doesn't necessarily improve your score right. Sorry I'm not the most educated when it comes to this. Should I try to get a secured credit card through my bank?
Actually, I would guess it will help your score immensely once it falls off. I'm assuming it is in collections and an unpaid collections on your credit report is one of the biggest weights that will pull your score down. But once it is old enough to fall off, its gone. Totally gone, doesn't even show up. Sign up for an account with Credit Karma. It's totally free and, for a website that doesn't cost anything, they give a very comprehensive view of what strengths/weaknesses are in your credit report. They also give you a "credit score", but keep in mind that is just a guesstimate on their part. Though I've found it to be pretty accurate for myself.
Here's another "tricky" way to up your credit score. You don't often hear this one, but it is perfectly legal. You need a close friend or family member who does have good credit and a credit card they've paid on time and have had for 5+ years. If they add you to the account but as a NON-SIGNER, that credit card with its all its long history both for age of a credit line and five+ years of on-time payments now become part of your credit history and score, as well. That should substantially boost your score because it is doing three things for you: lengthening your positive credit history, adding in a history of on-time payments, and adding a another type of credit to your credit picture (if you don't currently have a credit card).
Here are the caveats...your credit history (good, bad, or otherwise) will have ZERO effect on theirs. And you no authorization to make any purchases or even find out information about the card, which is how it should be However, if they start making late payments on the card, than it will effect your credit negatively. So, your credit doesn't affect theirs, but their paying that bill late could affect yours.
There has been talk in the credit industry that they are going to revamp their systems so this loophole can no longer be used, so I suggest googling this method to double check it is still viable. But my impression was it is cost prohibitive to change their systems and is probably not something the credit agencies will do in the near future.
Buying a house in the next year? Are you otherwise financially ready to do this? Have 20% down payment, closing costs, moving costs, utility deposits, repair/renovations, decorating additional furniture/appliances, yard items etc. AND still have a 6 months expenses in an emergency fund? IF NOT - start there. Read Home Buying for Dummies and Mortgages for Dummies A realtor is interested in you buying a house as that give them a commission. You can also buy with less downpayment - but be sure you understand how non conventional loans work. It was not long ago that many people lost their homes in the downturn because they used some creative, alternative financing.