Freddie Mac just released a blog about how to start rebuilding your credit right now, in order to buy a house in the future. Here are Freddie Mac’s three key suggestions to rebuild credit:
1 – Check your credit report annually. If there are errors, dispute the errors with the credit bureaus.
2 – Set-up payment reminders. Late payments can have a serious detrimental impact on your credit score.
3 – Reduce the amount of debt you owe. According to Freddi Mac “you’ll never qualify for a mortgage (secured debt) if you can’t manage short term credit cards (unsecured debt).”
If you are looking to buy a home and need to re-build your credit, eliminating unsecured debt is one of the most important things you can do. A debt settlement attorney can often help you eliminate the debt in a shorter period of time and for less money than a Dave Ramsey-style repayment plan.
Author: Kevin Fallon McCarthy