Supporting Your Credit Repair After A Bad Mortgage

If you have experienced credit problems in the past, and are considering credit repair, a mortgage that posed problems for you in the past can continue to do so for a long period of time. Generally speaking, most negative entries on your personal credit report can to stay on the report for up to seven years. Furthermore, negative entries on your mortgage payment may tend to bring your credit score down more than some other types of negative entries. Usually, mortgage loans are quite large and often the largest debt that an individual ever incurs; therefore, missed payments, defaults or foreclosures on a home mortgage can dramatically impact your credit score. With that in mind, here are some suggestions on how to go about repairing your credit when you have had a bad mortgage in the past:

Step 1 - Get Your Credit Scores

When attempting to repair your credit, the very first thing you should do is get copies of all your personal credit histories and scores from the three major credit reporting agencies: Equifax, Experian and Trans Union. Once you receive your reports, be sure to carefully review all of them for inaccurate information or errors. Also, be sure to check your credit report for unauthorized inquiries into your credit history and make sure to write all of the errors, inaccuracies or unauthorized inquiries on a notepad.

Step 2 - Dispute Credit Report Discrepancies

Once you have listed all of the errors or inaccuracies on your credit reports, you should sit down and write a letter to each of the credit reporting agencies. In the letter, be sure to list all inaccurate amounts, dates, and account information that may be included on your credit report. While you should never dispute something that is legitimate, you should dispute anything that is inaccurate. Also, don't forget to dispute the unauthorized credit report inquiries as these do impact your credit score and make them lower.

Once you have written your letter, mail it to the address included on the credit report for information corrections and disputes. Make sure to send a letter first-class certified mail via the U.S. Postal Service. The small price you pay to send the letter certified mail is well worth it. This will allow you to have proof of mailing, delivery and acceptance by the credit reporting agency.

Step 3 - Consider Other Credit Alternatives


While you're attempting to clear up any errors or inaccuracies in your credit reports, you can go about helping improve your credit rating by applying for certain types of loans. For instance, if you're in need of a new or used car, you may be able to qualify for a bad credit auto loan. However, you should be aware that interest rates on these types of loans are generally much higher than they are for people with good credit, but if you make timely payments and are never late - your credit score will improve.

Step 4 - Paying off Old Accounts

If you have several smaller amounts accounts that are listed as past due on your credit report, you may consider going ahead and paying off those accounts to have them show is being paid. Furthermore, if the debt is more than a year or two old, you may be able to negotiate with the creditor and have them remove the negative entries completely - if you agree to pay the account in full.

There are many ways to repair your credit history and score; however most of them do require some sort of payment of old debts or negotiating lesser amount settlements. However, you should always be aware of companies that offer quick fix credit repair techniques and solutions. More often than not, these types of companies are offering services that are simply scams or fraudulent in nature.



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