Debt Consolidation

Why consolidate debt?

Have You Been Looking For Ways To Repair Your Credit?

It is likely going to take you more time to repair your credit than it did to do the damage to it. The process of repairing bad credit can be much quicker than you think if you take the time to read through each of the following tips about credit repair.

Consolidate

Discuss your credit situation with a counselor from a non-profit agency that specializes in credit counseling. If you qualify, counselors may be able to consolidate your debts or even contact debtors to reduce (or eliminate) certain charges. Gather as many details about your credit situation as possible before you contact the agency so that you look prepared and serious about repairing your credit.

Credit Cards

Pay every bill and pay it on time. If you don’t have the money, lean on friends and family to help if you can. It takes a long time to recover from even one late or missed payment. Above all of your bills, keep your credit cards and loans paid and on time.

High Interest

Repairing your credit can take some time, but you can hasten the process by prioritizing your debts, particularly those that are in arrears. High interest rate accounts should be paid off as quickly as possible to avoid wasting money on interest payments rather than reducing the actual balance of your debt. If you have one or two accounts with a low balance, consider paying them off in a lump sum. Once that’s done, you can have them removed from your credit report.

Pay Off

Resist the temptation to cut up and throw away all of your credit cards when you are trying to repair bad credit. It may seem counterintuitive, but it’s very important to begin maintaining a history of responsible credit card use. Establishing that you can pay off your balance on time each month, will help you improve your credit score.

Now that you are equipped with helpful tips about credit repair, you are sure to be able to increase your credit score in much less time that it would have otherwise taken you. Take each tip and put it to work to help you restore your credit to a level that is acceptable.

Lower your Monthly Payments

Beware of low interest rate loans that have a balloon payment at the end. These loans generally have lower interest rates and payments; however, a large amount is due at the end of the loan. This loan may seem like a great idea; however, most people cannot afford the balloon payment and default on their loans.

Prepare your paperwork before applying for a mortgage. There are many items that a lender will require. These items include the last two or three years worth of tax returns, copies of each of your monthly credit card statements and installment loans. Three months bank statements and two months worth of pay stubs are also needed for approval.

Get pre-approved so you can figure out what your payments will be. Shop around and find out what you’re eligible for. Once you have everything figured out, it will be a lot easier to see what your monthly payments should be.

When considering the cost of your mortgage, also think about property taxes and homeowners insurance costs. Sometimes lenders will factor property taxes and insurance payments into your loan calculations but often they do not. You don’t want to be surprised when the tax office sends a bill and you learn the cost of required insurance.

While the process of getting a mortgage can be daunting, the results are well worth it. As you move into your home, you’ll realize your dreams are finally achieved. Home ownership brings great responsibility and rewards, so enjoy it all yourself by using the tips above and getting a great mortgage.

Lower your interest rate

There are loans available for first time home buyers. These loans usually do not require a lot of money down and often have lower interest rates than standard mortgages. Most first time home buyer loans are guaranteed by the government; thus, there is more paperwork needed than standard mortgage applications.

Try shopping around for a home mortgage. When you do shop around, you need to do more than just compare interest rates. While they’re important, you need to consider closing costs, points and the different types of loans. Try getting estimates from a few banks and mortgage brokers before deciding the best combination for your situation.

There are loans available for first time home buyers. These loans usually do not require a lot of money down and often have lower interest rates than standard mortgages. Most first time home buyer loans are guaranteed by the government; thus, there is more paperwork needed than standard mortgage applications.

If you are planning on purchasing a house, make sure your credit is in good standing. Most lenders want to make sure your credit history has been spotless for at least a year. To obtain the best rate, your credit score should be at least 720. Remember that the lower your score is, the harder the chances of getting approved.

Whether you are buying your first home, multiple homes or are looking for a better mortgage on an existing property, the right advice on home mortgages is priceless. Remember the tips listed above when you are signing the papers for a home mortgage. This way you will ensure you are making a good decision.

Improve your credit score

There is no credit fairy that might come visit you one night and whisper magical spells into your ear on how to fix your score. However, Mortago has advice you can employ for simple steps towards a better rating. Read on for some tips and tricks that might just be the miracles you were hoping for.

If you repair your credit score, you will end up paying less in security deposits. Landlords and utility companies alike charge more in security deposits for customers with a lower credit score, since those customers are considered to be a higher risk for default. Of course you get it back later, but there’s no reason to force yourself to pay it out at all.

If you need to repair your credit, consider speaking with a Mortago credit repair counselor. Our credit repair counselors can help you have even the largest debts paid off in just a few years. Our counselor will know better than you what steps to take and what channels to follow in consolidating your debt and building new credit.

Remember, as your balances rise, your credit score will fall. It’s an inverse property that you have to be aware of at all times. You always want to focus on how much you are utilizing that’s available on your card. Having maxed out credit cards is a giant red flag to possible lenders.

Having a good credit score means you can easily qualify for a home mortgage loan. Staying up to date with your mortgage payments is a way to raise your credit score even more. Owning your own home also improves your credit score in the form of having large assets to borrow against. This will also be useful in the event that you end up needing to borrow funds.

You don’t need a credit fairy to do magic when you come to Mortago to help clean up your credit score!