For a first-time homebuyer, sometimes nothing can be scarier than the home buying process. Actual there are only two things that are: death and divorce. What makes the process for most people so uncomfortable is letting a perfect stranger into their financial life. This person gets to see all the crazy, silly things that you may have done with your finances. Lets face it; learning about money is an “on the job training”. If schools did a better job of teaching money matters to their students, most of us would not be in the situations we are in as adults. But let me get off my soapbox that is another discussion.

Most people do not worry about their credit until they need it. But usually by that time, it may be too late. Either credit scores are too low from late payments, no payments, incorrect information, high balances on revolving debt, etc. There are a host of factors that account for an individuals credit score. Most of them are a mystery to people in the real estate profession let alone the average individual. But typically it is save to say that if you keep paying your bills on time and keep low balances on your credit cards that your credit score, better known as FICO, should be intact.

But what if this is not the case, what do you do? You can use non-profit agencies that can help resolve your credit issues, pay for the services of a credit restoration company, or you can try to fix matters on your own.

*Consumer Credit Counseling Services are typical non-profit companies that will help with credit and other financial matters. They establish a debt management or debt consolidation services where they can talk to your creditors to lower interest rates and establish a payment plan. You send the payments to them and they pay your creditors, depending on your state, there may be a monthly fee. Unfortunately, consumer credit counseling services may appear on your credit report and your credit report will reflect that you are using their services – which has the potential to affect you negatively. Although you are taking positive steps to resolve you finances, creditors typically do not want to see that you are using someone else to do the work for you.

*Credit Restoration Companies can do the some or all of the same services. These companies can charge you either a large up front fee or a lower monthly fee. Typically they do not show up on your credit report. Some offer just credit repair and others offer you full range of financial services from giving you a systemized way of getting out of all of your debt 50% faster (including your mortgage), debt management, unlimited access to financial planners and CPA’s, weekly tele-seminars on real estate, saving money, making money, and much more. Lets face it, usually if you credit score is low; there are some other financial issues that need to be address.

*Doing it by yourself. But you are the person that got you in the financial situations, so why not let the experts get you out of it.

If you want more information about how to fix your credit or information on a credit restoration company, please feel free to email me at

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Lynette Jones
Maryland Realtor