You've heard all about the "Credit Crisis Meltdown"...It's the top story in nearly every paper and news broadcast.
So what does that mean for you personally and how will it change your life?
With credit being so tight, it's harder than ever to get a mortgage and once you do, it's vital that you pay it back and make payments on time.
Then there's the issue of a down payment. Before now, buyers could often get away with a low down payment or no down payment. Now most lenders require that you put up 10% to 20% or else obtain private mortgage insurance.
If your credit score is low, getting a loan can be even tougher. And if you think you may have a credit problem, you probably do.
If you ask a Chicago real estate agent what the biggest hurdle is now for most home buyers, he or she will say that their client can't obtain financing.
In the not so distant past almost anyone could get approved for a loan at a great rate, even if they didn't have a great credit score. But the well of financing has dried up and banks and mortgage companies are only serving those with good credit. And your credit score doesn't only impact applying for a home loan. Landing a new job, buying a new car or even getting better rates on credit cards can all be adversely affected by a low credit score. The good news is that you can do something about it and improving your credit score will improve many aspects of your life.
Raising your credit score and repairing your credit takes time, discipline and work.
You can do it yourself, but you have to be committed and it is sometimes a learning process that can take some time. If you want to buy a new condo or house, new car or even apply for a different credit card you may not have the time to spend trying to fix your credit on your own. In that case, it may be better for you to hire one of the professional credit repair services to help you. In the long run, the money you will spend hiring a professional company to repair your credit is nothing compared to the savings youíll have in the future on credit card and loan interest rates.
There are two reputable law firms that we recommend to help you repair your credit.
Lexington Law has 17 years of experience and has helped more than half a million clients to ethically clear their credit and raise their credit scores. Once you sign on with Lexington, you'll have all of their experience working for you. They'll take your credit reports from the three major reporting agencies and once you flag which entries are questionable, they will work to get them investigated and removed from your credit history. They will contact the credit bureaus for you and work to get your report cleaned up and your credit score higher.