Question from reader: My bank turned down my loan to buy a house because of my credit. How do I fix my credit to buy a house?

Answer from Jeanette Joy Fisher

Besides working on raising your credit score, you might want to ask a mortgage broker for help financing your home. Your bank may have more stringent qualifications than other sources. Also, ask you loan officer which specific credit problems you need to work on.

There are other factors besides credit to consider for mortgage qualifications, like debt-to-income ratio, employment history, and down payment. However, if you want to boost your credit score you can pay down your credit cards and clean up your credit report.

The process of clearing credit reports can be laborious and frustrating, but your efforts will be paid for in better financing. Your rights are protected by laws, but you need to take reasonable actions toward your goal of clearing credit discrepancies. You can get the credit reporting agencies to help you instead of hindering your excellent credit quest with these steps.

10 Steps to Clear Credit

1. Order your credit reports. You may be able to get copies for free from https://www.annualcreditreport.com.

2. Check reports for discrepancies, errors, and items that you can work on.

3. Make a spread sheet of your problems and discrepancies.

4. Contact the companies you have problems with by telephone. (Contact original debtors, not collectors.)

   Log the telephone call with a brief summary of agreements.

   Remember to record the name of the contact representative.

5. Follow up with certified letter to the company.

6. Write letters to collectors, dispute bill, send documentation of payment to original company.

7. Fill out dispute form provided by each credit reporting agency.

8. Write separate letter for each disputed item to each credit reporting agency.

   Send letters by certified mail.

   Enclose copies of supporting documentation.

9. Use the number provided by the  credit reporting agency and call for progress; have your reference number handy.

10. Keep comprehensive records in your Credit File.

These ten steps will help you finance your dreams. Also read the FREE Special Report "Credit Tips for Mortgage Financing" inside the updated
 "Turn Your Credit Burdens into Wealth-Building Tools" ebook available at http://worryfreecredit.com
 
If you have a question about real estate investing with fixers, home staging, or credit, see contact information at the bottom of www.AskJeanetteFisher.com.

Copyright © 2006 Jeanette J. Fisher