Bad credit, good advice
Kenneth Harney reports today on a credit-fix company that recently settled with the federal government after allegedly promising fixes it couldn't deliver on. He offers this advice to anyone pondering what to do about a low credit score:
If the problems in your credit files reflect actual late payments, nonpayments, tax liens or foreclosures, don't look for magic or miracles. No legitimate "repair" service can make them disappear permanently.Most serious credit issues are likely to remain in your files for three years to seven years, and bankruptcies and foreclosures for as much as a decade.
On the other hand, if your credit files contain erroneous information, it's a different dynamic. Either you or an organization that specializes in credit assistance can contact the sources of the bad information and get it corrected on your national bureau files.
But under no circumstances should you pay money upfront for credit-repair services.
Remember, you can always go to a HUD-approved nonprofit housing counseling agency for free (or in some cases, low-cost) advice about credit issues.
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Comments
So what is your proposed solution(s) to those with low credit scores? Everyone is entitled to live someone other than the street. Low credit scores prevent you from renting apartments, and obtaining reasonable rates on home loans. Short of living on the street, those with low credit scores have no choice but to pay the fees to fix the credit or to outrageously high mortgage loan fees --- assuming you can get a lender to approve the loan. Or you are reduced to paying outrageous monthly rent for a home that someone may not be paying the monthly mortgage and awake to find the constable with an eviction notice demanding the property because the true owner is taking your rent money, but not paying the mortgage because they are in financial trouble also.
Solution? Suggestion?
Signed - "been there, done that, waiting on a better way"
Posted by: Michel | June 13, 2008 2:27 AM
Did you try one of the HUD-approved housing counseling agencies (see link above) and have no luck?
Posted by: Jamie Smith Hopkins | June 13, 2008 6:18 AM