Brenda Walker

YOUR CREDIT REPORT CAN BE A DOUBLE-EDGED SWORD!!

As you begin to think about looking to buy a home in Jefferson or Shelby County, AL, be sure your credit report doesn't undermine your efforts. As you try to get that coveted loan pre-approval from a lender, he or she will pull your credit report. Your credit report is a consolidated view of your credit history from the three agencies (Equifax, Experian and TransUnion).

When a lender looks at your credit report he or she can tell a lot about you. Do you pay your bills on time? Do you live within your means or do you purchase everything that appeals to you using your credit card. The ability to buy now and pay later has allowed people to achieve the American dream but on the flip side others have plunged into a nightmare of bill collectors! It's the old phrase, Pay me now or pay me later.

When you review your history, notice how many credit cards are on your credit report, verify the accounts and clear up any errors before you begin to look for a home. An account with a balance of $600 with six payments of $100.00 is looked at differently from an account with a balance of $4,000 with payments of $50.00 per month.

The account with the lower payments and higher balance reflects better than the account with the lower balance but higher payments, so payoff the smaller balance accounts. Payment of smaller balances with large monthly payments will improve your overall score on your credit report (for more detailed information contact me at (www.bjwalker.net)

Follow the steps below:

1. Get your credit report from all three agencies.
2. Correct any errors on your report.
3. Pay your bills on time and put a hold on any purchases.

Credit used wisely can assist you in fulfilling your dreams for the future, so use it wisely. Before you begin looking to buy a house in Jefferson or Shelby County, Alabama, be sure your credit report is in good shape.

Until next time,

Brenda