Do Credit Repair Services Actually Work?

If your credit score is suffering, you’ll do practically anything to repair it. However, there are all sorts of scams out there that claim to improve your score. How are you supposed to know the difference? When you come across credit repair services on the internet, it’s not easy to know whether you’re looking at something legitimate.

Of course, credit repair services cost money as well, so you have to question whether they’re even worth it. Is it such a big deal to have a poor credit score? Well, we’re going to break this down for you today, and provide you with the information you need to know about credit repair services.

What Are Credit Repair Services?

A credit repair service is there to try and right the wrongs on your credit report. They’ll analyze your credit score to find out why it’s so low, and then try and improve it. They are experts in their field, so they know all the tricks of the trade and they’ll do their best to turn the problem around. In some cases, it might just be as simple as rectifying wrongs like basic errors in your personal information. Not many of us truly understand how credit works and what goes on the report, so these companies are there to help us out.

Why Do I Need To Repair My Credit, Anyway?

Good question! If you aren’t sure why you need to repair your credit, it’s a sure sign that you shouldn’t be trying to handle this task by yourself. Your credit is one of the most important things you need to get right. In the future, when you’re planning to buy houses or take out big loans, you credit score will come into play. If it isn’t up to scratch, you’ll miss out on many opportunities. But don’t fear! A poor credit score comes about as a result of failing to make payments. If this rarely happens to you, your credit score will probably be quite good! However, if you struggle to pay on time, your credit rating will slowly begin to decline. Eventually, it’ll get out of hand, and it’s a good idea to use a credit repair service before you get to that point.


I’ve Heard About Scams…

It’s true that some companies trading as “credit repair services” are merely a scam to provide false hope. Spotting one of these companies is simple as long as you know what you’re doing. Do you research ahead of time and read reviews about the company you intend to contact. For example, a quick glance of Sky Blue Credit Repair reviews shows plenty of positive feedback. You should never be in a position to get scammed as long as you’re taking the right measures to prepare in advance.


How Can They Help Me?

The most obvious way that a credit repair company can help is to speed up the process of improving your credit score. As previously mentioned, they can spot certain mistakes or errors which they can then challenge with the credit bureaus. You can’t always guarantee a positive result, even when the professionals are involved. Some services offer money back guarantees in case they can’t make any real progress. In a nutshell, these companies are there to do everything they can to clean up your credit score by identifying areas of improvement. They are a quick way of solving the problem, and they’ll be able to give you tips to manage your credit more effectively in the future.


Where Can I Find Them?

You’ll find the majority of credit repair services online. A quick Google search will present a vast number of potential options for you to consider, but remember what we’ve already spoken about. Before you go contacting anyone for assistance, make sure you do your research. What you’ll find in the listings of a search engine is not always reputable. As long as you’ve checked reviews beforehand and ensured it’s the right solution for you, you’ll get value for money.

So, it’s clear that credit repair services do work. The key factor in all of this is making sure you do the right preparation beforehand. You take it seriously with the right amount of care, as a good credit score is such an important thing to have. Even if you don’t intend to use it much right now, it’ll affect your future for things like mortgages and loans. Do what it takes to repair your credit score now, and you won’t ever have to worry about it when the time comes.

source: 20smoney.com

Buying Your First Home in 2016? Start Now.

There are some very good reasons to buy a home in 2016. Mortgage interest rates are on the rise and leading economists predict that the longer you wait, the higher they will go, toping 4 percent by the fourth quarter. Home prices are also expected to continue their upward climb in the year to come, but at a slower pace than in 2015.

The State of the Real Estate Market

First-time homebuyers found the pickings to be slim for affordable starter homes in 2015, especially in hotter markers like Denver, Portland, Dallas, Seattle and much of California. Slim pickings in their price range kept thousands of potential buyers in rentals for another year. Will 2016 be any different?

New home construction is expected to improve considerably over last year as builders respond to rising prices. The will put the new-home market on track to reach 91 percent of its average norm by 2017, according to the National Association of Home Builders.[1] News homes are generally priced higher than first-timers can afford, but the new construction will still make a positive contribution to the inventory shortage.

More import is the outlook for existing homes. Supply of entry-level homes has been constricted by the unwillingness of current owners to sell and move up the housing ladder to a more expensive home, but that may change in 2016.

“Sales activity in 2016 will once again be primarily driven by the ongoing release of more pent-up sellers finally realizing their equity gains and using it towards the down payment on their next home,” says Lawrence Yun, chief economist for the National Association of Realtors. Yun predicts home sales will finish 2015 at a pace of 5.30 million and grow three percent next year to around 5.45 million.[2]

However, 2015 is ending with a question mark about the inventory outlook. Both NAR and Redfin reported that in October total homes for sale were down 4.5 percent from 2014[3] and NAR reported the inventor of unsold homes in October stood at a 4.8-month supply, below six months considered normal.[4]

When the spring season opens, one thing is certain. Inventories will be much larger than in the late fall, with fresh, new listings for sale. Again, the early birds will get the worms.

 How to Get Started

If you’re serious about becoming a homeowner in 2016, you need to be getting ready now. Here’s a checklist to get you started.

Get your credit in order. If you haven’t been managing your credit before, it’s too late to do much about big problems like bankruptcies or tax liens.  You should , however, still order reports from three top credit reporting agencies (Experian, Transunion and Equifax) to look for any errors or questionable calls that you might challenge. Here’s a list of credit do’s and don’ts:

Do:

    Pay all your bills on time
    Pay down as much debt as you can, especially smaller amounts on high interest cards. That will reduce your minimum monthly payments.
    Consolidate high interest credit card debt with a lower interest card or personal loan. Again, you will reduce your minimum payments, which lenders total to determine your debt-to-income ratio.

Don’t:

    Make any large purchases on credit.
    Open any new credit card or store credit accounts. Too much credit can be a negative and every time you apply for new credit, your rating takes a small hit.
    Cancel your oldest credit card. Lenders like to see a long history of good credit.

Get a down payment strategy. To buy a home, you will need cash for a down payment and closing costs, which roughly will come to about 3.5 percent of the total cost of your home. Of course, there are options to consider.

You don’t need 20 percent down for many mortgage options; the average down payment in 2014 was only 10 percent and among first-time buyers, only 6 percent.[5] That’s because most first-time buyers are using FHA financing these days to take advantage of its 3.5 percent down payment requirement. Look into your down payment options, including:


Down payment assistance with a low or no-down payment loan from a state or local housing authority. Feel free to contact us for information if you’re looking to buy a home in Connecticut—we’re kind of experts.

You can’t take out a loan for your down payment, but you can receive assistance from parents or relatives.

Both Fannie Mae and Freddie Mae initiated new loan down payment programs early in 2015. Fannie’s program is limited to qualified first-time buyers and requires a down payment as low as three percent and requires private mortgage insurance or other risk sharing.[6] Freddie Mac’s program also requires only 3 percent down but first-time buyers must complete a home education course, like Freddie Mac’s online CreditSmart course. Minimum credit scores for either program is 620.

You can qualify for a VA loan, which has no down payment requirement if you have 90 consecutive days of active duty service during war time, 181 consecutive days of service during peacetime, or 6 years of service in the Reserves or National Guard. You can also qualify if you are the spouse of a veteran who died in the line of duty, the spouse of a service member who is a prisoner of war or missing in action, or the surviving spouse of a disabled veteran whose disability may or may not have been the cause of death.
Get your documentation in order. Having your paperwork in order when you apply for a loan speeds the approval process along.

If you are emplolyed full-time, let your human resources office know that you plan to apply for a mortgage so that they will be ready to get you the right paperwork.

If you are self-employed, part-tine or seasonally employed or rely on income aside from full-time employment such as alimony, child support, royalties, sales commissions, dividends, etc. you will need documentation and at least three years of tax returns.

source: totalmortgage.com