Financial Repair How To

How to Fix Your Credit

Ok, this is by no means intended to be the end-all, be-all of credit repair tutorials, but there is some good information here for people who are trying to figure out how to fix their credit and even save their homes or other real estate. This is intended for informational purposes only and you should consult a financial, tax and/or real estate professional before making any important financial decisions that can drastically affect your life.

With all of that out of the way, how about we start with some of the basics. Most of the people that I talk to every day have very bad credit. What is bad credit? Your credit is bad when you start to get below a FICO score of about 620. While this does not mean that you cannot get a loan, it means that if you are seeking real estate financing, you will be talking to what are called sub-prime lenders. Typically the rates on sub-prime real estate loans are about 2 to 3 percent (or more) above what "A paper" borrwers (aka borrowers with good/great credit) can get at the same time. But, don't worry, you can fix your credit and get into the 700's with a little work, discipline and a bit of determination.

So, how do you being repairing your credit. First, let's figure out what got you to the point where you are today. Are you always late paying your bills? When I say late, I mean so late that your creditors report you to the credit reporting agencies (chronically late, late bills more than 45 to 60 days).