Repairing and Using your Credit

When it comes to investing in real estate, your credit status becomes very important. You must ensure that your credit is in a good state so that you are able to close deals quickly and easily. If it is not in good order, then you must take some steps to rectify it. You should begin by determining what level of repair is needed for your credit.

Obtain a credit report that will help you to assess the situation. Usually, the three types of credit issues can be categorized as Slow pay, No pay, or fraud. Slow pay refers to non-timely payments, whether this is simply due to forgetfulness or financial problems. It is best to avoid this problem altogether as slow payments can stay on record for up to seven years.

No pay, as the name suggests, is the avoidance of making a certain payment. This can happen for a variety of reasons, voluntary or involuntary. The best course of action to take is to arrive at a settlement with the creditor, which will then allow you to take the matter off your credit record. Failing to do so, can result in this staying on record for up to seven years. Fraud is very serious and must be cleared up as soon as possible. The practice of stealing identities is becoming more and more prevalent and therefore, you must always scrutinize your statements and take the matter up with the law. Be persistent as fraud can harm you in serious ways.

Once you have repaired your credit, use it wisely when investing in real estate. After all, you do not want to go through all the hassle of making sure your credit is in good order only to squander it on a bad investment.