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Monday, September 28 2009 @ 03:24 AM Central Daylight Time
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A blemished credit report can definitely hurt your chances of landing a good interest rate on your mortgage. Whether it’s due to overspending or payment defaults, your credit score is one of the major determining factors when applying for a loan. So, it is only imperative that you maintain diligence in reviewing your report. But if your credit report is not looking good and may jeopardize your owning that Miami condo unit you like so much, there are do-it-yourself repair techniques that you can do.
Review your report carefully
Of course before reviewing your credit report, you must order it from the credit bureaus. Obtaining a copy of your report from the three agencies (Experian, Equifax and TransUnion) is important. Reports from each bureau will be different from each other since creditors will only submit reports to the agency to which they have a subscription. This is helpful especially if you have been denied of a loan or received a less favorable mortgage term for your Miami condo. It may be that one of the reports is not updated and your lender used that for your application.
Errors are typical in credit reports since bureaus only take whatever report they receive from your creditors – they don’t verify. It is your task to inspect your report for any errors that may diminish your chances of taking out a loan. But if the negative information of your report is true, your current payment habits will take a much larger role when applying for a role. Creditors don’t necessarily focus on past or single occurrence of payment default; they also check if you are currently paying your bills on time.
Correct the mistakes on your report
Mistakes in your credit report can cost you money and chances in getting a good loan term for your Miami condo. Dispute any erroneous information in your report by sending a photocopy, with the mistakes encircled, to the reporting bureau. And to make your claim stronger, don’t forget to include supporting documents. If you have been keeping every document you send to bureaus, you wouldn’t have a problem with this one.
Resolve your debt
Finally, the most helpful credit-repair technique is to reduce your debt. By simply planning your spending habits carefully, you can easily handle your monthly payments and manage your debt.
But if you seem to have a hard time paying your bills, remember to be proactive. You can negotiate with your creditors to keep your accounts current and to prevent them from reporting any delinquents. Furthermore, you can ask for reduced monthly payments in order to manager properly your finances. This way, your credit report will not contain any negative information, which is costly when applying for a loan for that Miami condo unit you want.
Mark Michael Ferrer
Miami Condos |
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