Credit Repairing Advice

[Anthony]

Hi, I’m 25 and planing to buy a home 2 years from now.

I don’t have a loan of any kind, but I do have a little over $8,000 in debt. This is on 3 credit cards.

I’m paying off my credit cards debt with small but steady payments.

I would really appreciate and strategies and steps, since right now I probably won’t be approved even for a car loan:-(

Thanks for the help

[Louis]

Lower your credit utilization ratio

You don’t give enough information, so it’s hard to tell.

From what you do say, I’m guessing that the $8000 are probably around your limit, or maybe your cards are even maxed?

This is the first thing you should take care off. Lower your credit cards debt to limit ration (utilization ratio) under 50% to start with, and under 35% if you can.

Next – pull out your credit report from all of the three credit bureaus and check them thoroughly. If you find any errors – dispute/correct them with the credit bureaus.

If you have additional negative information on your credit report such as late payments or stuff like that – it can take up to 7 years before they go away, and until then – your credit score will be impacted.

Lastly – NEVER be late on your payment. NEVER!

That will really ruin your chances of securing a home loan, and even if you do – your terms will be poor.

Low credit score costs much more money than what it takes to keep up with payments.

Good luck…

[Author]

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