Correct Consumer Reporting Errors and Omissions

Real mistakes can be reported for FREE if you write a letter to the credit reporting agency, show proof of the mistake and enclose supporting documentation for consumer reporting companies like Equifax who will then investigate within 30 days and correct errors in your credit file. But that is for the minority.

Accurate Negative Credit Reports

The majority of people who seek to repair their credit before applying for mortgages with bad credit, know that the negative information in their reports are accurate and they simply wish to fix their credit and move ahead. This will occur naturally after 7 seven, or after 10 years in the case of a bankruptcy, but that is little consolation to someone who must refinance their home NOW. So, let me be clear, you can get a bad credit mortgage even if your credit is bad and even if your FICO scores are low. You will just have to pay a higher interest rate and perhaps have less credit available.

Change Your FICO Score

However, if you have 3 to 6 months before your mortgage must be renewed, you can do a lot to change your FICO score and alter your credit future.

1. Consolidate all your debt into one payment and pay your bills on time for 6 months and everything will change in your favor.
2. Contact your current bank or financial institution and see if your lender will reduce or even suspend your mortgage payments entirely for a few months to help you get on track. Don’t wait until you get foreclosure letters to talk to your bank. Banks know that people are in a crisis and are more than ever willing to make arrangements that work for their clients.

Communicate with Lenders

Honestly, the biggest problem isn’t making payments, but the fact that people don’t communicate with their lenders for fear of being slapped on the wrist. Don’t go to them with your tail between your legs looking for bad credit mortgage loans when it’s too late, instead sit down with someone and be honest and present a reasonable payment schedule and see what they say. Then when it comes time to renew you will be better shape and have a better FICO score because no one will have reported any defaulting payments or late payment history. Remember late payments constitute 35% of your FICO score! That is totally in your hands to remedy.