Experts tell you: when the credit record is bad, how to buy a house?(2)

How can I quickly improve my credit score before buying a home?

To get your credit score up to account, first you should correct bad financial habits that undermine the accumulation of credit scores.

Pay all your bills on time every month. "It may sound difficult, but it's the easiest way to quickly improve your credit score," Hardekopf said. "If you need someone to help you improve your spending habits and make a reasonable budget, consider consulting a financial planner (you can find it above NAPFA.org).

Pay off your credit card debt. Hauber says credit scores are usually based on the use of credit limits based on arrears, so one of the best ways to improve your credit score is to pay off an existing debt. Many experts stress the "30% principle": credit cards should not be spent more than a third of their total credit worth. You can also apply to a credit card issuer to increase your credit limit to improve your score, which can effectively reduce your credit line utilization (i.e., the ratio of arrears/credit limits). Increase your quota by calling or submitting your application online.

What if I find an error in my credit report?

Double check your credit report for errors. Every 12 months, you can get your credit reports for free from three major credit reporting agencies ( Equifax, TransUnion and Experian). According to a 2013 Federal Trade Commission survey, a quarter of Americans found errors in their reports. Sylvia Gutierrez, a credit commissioner in South Florida and author of Mortgage Matters: Demystifying The Loan Approval Maze, says some of the mistakes are simple, maybe someone has renamed you and the bank has mixed up your account.

The credit should be notified as soon as an error is found. Once the credit confirms the error, a letter is submitted to Equifax, TransUnion, and Experian to help you correct the error. If the error appears only in a report provided by one of the agencies, you can simply contact the agency individually to correct the problem. Titsworth added: "The errors in the revision report are time-consuming. "So for people who want to borrow a home, the sooner they find out the problem, the better." If you've started making a home loan, you can turn to the Credit Commissioner for help in speeding up the process of making wrong changes.

Can I remove my bad record from my credit report?

If you have only once had a bad credit history due to your own problems, such as a mispayment of your debt, you can contact a lender to delete this missing record. But if you miss back multiple times in a row, then this method may no longer apply, after all, a mistake is still excusable. On the other hand, if you are a loyal customer of a credit card account company, it will also help you with your request to delete a bad record. If the lender agrees to delete the record, they write to the credit scoring agency (in the same way that they handle the error) asking them to remove the bad record from your report. You will then need to collect documents that prove that your credit history has changed, such as a new credit card statement or a letter requesting deletion, and then ask your lender to request an updated credit score from the credit agency. Often referred to as "rapid rescore", a new credit score can be generated within a few days. This will be a great help when you apply for a preapprove for a mortgage in a competitive market.

Should I ask a credit advisory firm for help?

First, you need to understand the difference between a credit consultant and a debt management company. If your credit card is overdue, a credit advisor can help you develop a plan to repay the lender and better manage your money at a lower cost. In contrast, debt management companies will negotiate with your lenders to minimize your arrears, but many debt management companies charge higher fees.

Don't easily seek help from debt management companies unless you are really facing financial difficulties. In addition, whether you should consult a credit advisor depends on how complex your financial situation is and what guidance you would like to receive. If you only have one credit card in arrears and just pay off your balance, you should already know how to make up your credit score. If the situation is more complicated, such as having several credit accounts that are in arrears, but you don't know which one to pay off first, consulting a credit advisor may help you plan your repayments. Non-profit organizations such as Consumer Credit Advisory Services can provide you with free advice.