Is your credit report standing between you and a home
refinance loan? If it is, you can either be patient and
wait for it to improve on it's own, or you can take matters
into your own hands and get it done more quickly. Here are
five ways to kick start your credit repair into overdrive
and really boost your chances of a good home refinance
loan..
1. Get a copy of your credit report and look it over
carefully. See if any obvious errors jump out at you, such
as accounts you didn't open, bad credit loans, or payments
you didn't miss. If you happen to see any fraudulent
accounts on your credit report, you need to get them
removed as soon as possible. Millions of credit
transactions take place every month and it's always
possible that a simple mistake has taken place, but you
don't want somebody else's mistake looking like one of
yours. It's a good idea to review your credit report at
least once per year. You know the old saying: An ounce of
prevention is worth a pound of cure. It couldn't be more
true here! You can find your free credit score by going
directly to companies like TransUnion Canada or Equifax USA
and Equifax Canada
2. Do you have any credit cards you're not using? If what's
in your wallet isn't being used, you should close the
account because open accounts sitting on your credit report
are reducing your credit worthiness. The reason for this is
because available or "open" credit is often viewed as
negatively as utilized credit. Plus, if you close credit
card accounts that you're not using you won't be tempted to
buy that awesome set of steak knives you saw advertised on
your satellite TV at three o'clock in the morning while you
were eating that monster bowl of ice cream.
3. Even if you have a balance on a credit card, call the
credit card company and cancel the account. A lot of people
don't know this, but you don't have to have a zero balance
to cancel an account. You can cancel the card and pay the
account off under the terms of your card membership
agreement. Don't believe me? Dig out the terms and
conditions disclosure you got in the mail when you received
your card and you'll see that I'm right on the money. Not
only will this help improve your credit score, but you'll
find it easier to sit down or close your purse.
4. Do you have late payments languishing on your credit
report? If you do, and you're current right now, you can
call the creditor and ask them if they're willing to change
that late payment to an on-time payment. You have about a
50% chance of getting your late payment removed, but it's
better than the 0 % chance you have by not asking!
5. Do you have any charged-off accounts or missed payments
on your credit report that are older than two years? If you
do, there's an excellent chance you can get those entries
removed as well. In most cases, creditors are only required
to keep records for credit transactions for two years.
Simply write to the credit reporting agency and dispute
that entry and asked for written verification of the
accuracy of that record. If the creditor can't prove it,
the credit reporting agency is required to remove it.
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Darrin Roseborsky is a Refinance Specialist with OMAC
Mortgages, seminar speaker and president of
HomeRefinanceCoach.com. Darrin shows people how to MAXIMIZE
their equity PROPERLY and how to choose options that make
the MOST SENSE for their situation! An example of exactly
how this works, is at: http://www.homerefinancecoach.com
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