Having good credit is more important in today's world than it has been in quite a while -- if you are planning on getting a mortgage loan, you need to have good credit.
Three years ago, it really didn't matter what your credit score was - you could find someone to loan you money regardless of what your credit score was. But times have changed and banks have gotten tougher when it comes to credit scores.
Which is why many people are being referred to a "credit repair company" if they apply for a loan and have lousy credit. If you have bad credit and can't qualify for a mortgage, what is credit repair anyway?
Credit repair is nothing more than the process of questioning the information found on your credit report with the intention of finding and correcting any mistakes or inaccurate information that you find. As a result of correcting these mistakes that you uncover, your credit score will increase.
The process of questioning items found on your credit report means that you will need to write letters to the credit bureaus about specific items found on your report. The process of writing these letters can typically take between 3-9 months depending on how many items that you are questioning and asking to be removed.
One of the more common questions about credit repair is "is it legal" and the answer is yes - it is completely legal as long as you are attempting to remove only the inaccurate information.
A few of the key things to fix when fixing your credit report:
And in today's mortgage lending world, even a bump of just a few points may mean the difference between qualifying for a mortgage and not qualifying for a mortgage - or in other words - it can make all the difference in the world.