Is getting credit repair a good idea if planning on buying a house?

Question

how does credit repair work? is it a good idea if you have bad credit and want to buy a house.

Answer 1

There is no such thing as credit repair.  You can dispute inaccuracies in your credit report and even file letters of explanation.  However, accurate but negative credit information will remain on your credit report for 7 years, bankruptcy for 10 years.  No one can change this and if they say they can, they are after your money.

Answer 2

You should repair your own credit. Credit repairing is a good idea, but you do not need to pay a company for what you can do on your own.

A site I've used for info in the past ...

http://debt.knowledged.info/credit_card....

Good Luck.

Answer 3

Great questions, here are the answers:

Regardless of a future home purchase, this should be considered.

Credit repair works by you disputing false charges, or inaccurate information that is reporting on your credit report, to the credit bureaus in which it is reporting.  Some companies will do it for you, but keep in mind that credit repair companies are loosely regulated.  What this means is that a company could offer there services for a fee....  What will they charge?  And is there a specific time line in which they need to have there services completed?  The answer to both questions are no.  Read more at http://www.ftc.gov/bcp/conline/pubs/cred...

1.  This is clearly something that you can do yourself if you have the time.  All you need to do is first obtain a credit report from each of the bureaus.  www.Annualcreditreport.com, provides you with the information on how to contact the credit bureaus.  By law you are allowed one free report per year, through Experian, Equifax and Transunion.  So once you have the report from each of the bureaus, make a copy.

2.  Next, you will need to create a letter to send to these bureaus disputing the inaccuracy, or error that is reporting to them.  You can find a generic letter at http://homebycountrywide.com/files/docs/...  Enclose a copy of the credit report, highlighting each of the items in which you are disputing, and mail to the bureaus.  The credit bureaus will contact each creditor, and ask for them to verify the information.

The bureaus will contact the creditors within usually 30 days, and ask for an explanation.  If the creditor cannot provide any information showing that the charges are valid, then by law they must be removed.

Remember, the only costs that you will have to pay is for copies of the paperwork, envelops and postage.

Good luck to you, and let me know if you have any other questions.  I'd be willing to provide any advice that I can, without charge of course.