Improve Your Credit And Become A Real Estate Investor

Many first-time real estate investors avoid setting out on their real estate investment venture due to their poor credit scores. All of them are looking for the answer to the frequently asked question: “how can I improve my credit so that I can start my real estate investment business?” If you have bad credit, it’s quite hard to qualify for financing. Real estate investing involves the use of a lot of money, financing and funds. Whenever you borrow money, it is important that you build good credit since having strong credit carries a number of benefits. Good credit borrowers qualify for lower interest rates and attractive offers. Good credit can also open up unprecedented opportunities for you.

This article gives you some idea about how to go the right way and repair your credit score.

The first step that you should take is to collect a copy of your credit report. Many websites are out there that offer you a free credit report once every year. It is better to ask for one from each of the three principal credit bureaus: Equifax, TransUnion and Experian. Subsequently, you should compare the credit account entries enumerated on the three credit reports. On certain occasions, the credit reporting agencies can demonstrate distinct or conflicting details. If you come across any irregularities, talk to the individual creditor and challenge the details or arrange for settling the account. More often than not, the creditor would be willing to settle that account and accept a reduced payoff amount. If the creditor accepts a settlement but the amount is excessive for you to pay in full, try to establish payment plans. A payment plan would instantly prevent negative reporting on your credit account and later on be posted on your credit report.

When you’ve negotiated a payment plan or settlement, just ensure that you get it on paper from your creditor. Once you pay off an account, ask for a letter mentioning the account has been paid in full or the debt has been settled. You might have to give payment proof to the credit bureaus if the creditors don’t convey this on time. The creditor has to contact the credit bureau but on certain occasions they don’t do it. Hence, you might have to report on it. On the whole, your credit report must be brought up to date within one month or so.

So you’ve got sufficient details to initiate the credit repair process. The sooner you start, the faster you can make gains from real estate investing.

Author:   svbblogger

http://www.thedigeratilife.com

(ArticlesBase SC #1713038)



Comments are closed.