ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Buying or Refinancing Your Mortgage With Adverse Credit Part 1

Updated on August 7, 2008

Living the dream of having your own home can seem like an impossible goal when you have serious blemishes in your credit history such as many missed and late bill payments, perpetually maxed out credit cards, and maybe even a bankruptcy or foreclosure. Let me say this up front: there are no magic wand solutions. But solving your problems through hard work (yes, I know, hard work is, well, hard) has the power to teach you things you never could have learned by finding the easy way out. You become stronger and smarter. Also, when you are tempted by the same pitfalls that got you into your problems- a shiny new boat, a designer pair of shoes, whatever your "candy" is- the memory of your rough road back can serve as a quick and powerful reminder that can snap you out of the tempting object's trance. But enough wistful imagining of yourself wisely staying on track after you've gotten there. Doesn't it seem so easy to daydream about having already finished the work to do as the time to start working draws near? That itself is a particularly effective deterrent to getting a good start on the path to repairing your credit. So let's start!

Part 1- Get Your Credit Report

You may have an idea where you're at as far as your credit is concerned. If you've recently tried to prequalify for a home loan your agent might have shared with you some of the contents of your credit score after making an official inquiry. In the United States, the three major credit bureaus are Experian, TransUnion, and Equifax. Your credit score is a number between 300 and 850 and a higher score means it's easier for you to get approved and get better interest rates for loans and mortgages, among other things.

If you don't know what your credit report looks like, you can find out without negatively affecting it once every 12 months by going to Annualcreditreport.com. Don't worry! This is not one of those corny companies whose commercials on TV have people singing and playing guitars while dancing in a pirate suit. This is the only federally mandated source for obtaining a free copy of your credit report. The many companies that you see advertising a fee credit report, such as freecreditreport.com, if you listen carefully to their commercials you'll hear a quick voice and microscopic lettering which appears for a few seconds at the bottom of your screen saying "offer applies with enrollment in 'Triple Advantage'."

If you do your homework and learn about this Triple Advantage program and decide that it has value for you, great! But if you just want to get your free, no-strings-attached annual credit report that the law allows you to get, you don't need to, and probably shouldn't, use one of the third-party companies out there to do it. Just remember, Annualcreditreport.com is the only non-third party source and you can only get your credit report once every 12 months without affecting it. You could, of course, get an inquiry every month or every day, but doing so would affect your score.

Now, if you go to the site, you will be asked to enter some private information like your name, address, and social security number, but not your credit card number(s). You can select one, two, or all three of the credit agencies you want to get your free annual report from. Here's an example strategy to get the most out of your free annual credit report: Say it's January 1, 2008. Go to Annualcreditreport.com and register and select to get your free credit report from Experian. Then four months and a day later, on May 1, go there again but this time select TransUnion. On September 1, get your free annual credit report from Equifax. See? You can have a free credit report once a year from EACH of the three major credit bureaus.

Just one more note about this topic: this free credit report will be what it says it is- a report. Prepare yourself to possibly look at a lot of data and raw text, depending on the length of your credit history. You may find yourself scanning across the page just looking for your credit score- that single number I mentioned above. We all love to boil things down, to cut to the chase, but for whatever reason, the number won't be there on your free credit report! The actual score number is available as an add-on to the report for a fee. But I'm telling you that you will have the really useful information in your hands and that you can get to work without that one number.

In Part 2, we'll look at how to interpret the report and come up with a plan on how to act on that information. Remember, the journey of 1,000 miles begins with one step.

Good luck!

http://flickr.com/photos/mike9alive/2137953259/
http://flickr.com/photos/mike9alive/2137953259/

Comments

    0 of 8192 characters used
    Post Comment

    • profile image

      GoodCreditRocks 

      10 years ago

      Great tips!

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)