Credit help, anyone?

[lorainrain]

I am having a tough time right now and really need to get my home refinanced, but have some bad spots on my credit due to about 6 months out of work. I am back on track now, but cant get financing with my current credit scores. I have heard about credit repair but am not sure if it works. Can someone give advice?

[jcme]

lorainrain,

I don't have personal experience with credit repair companies, but I heard you have to be very careful of them and they can be very expensive for not doing much more than you can do on your own.

Since you mentioned being on track, if you are only trying to repair your credit to refinance your home, I would suggest talking to a few mortgage brokers. They have access to a variety of loan programs and they may be able to find one that would work for you. Those mortgage programs will be more expensive than the bank or big mortgage lenders, but it may be better than going the credit repair route.

Good luck

[LuvMaui]

Hi:

I worked in the escrow industry for 20 years. Refinancing without B or C credit can be a mistake. You can and most likely will be changed a much higher interest rate, more points and fees to close your new loan.

I have heard that the credit repair companies don't do anything for your credit that you couldn't do on your own. You can make phone calls and request lower interest rates and low payments. You can contact the credit reporting agencies and request items be removed from your credit report. I don't think a credit repair company can change your credit score, unless somthing is on your credit report that doesn't belong there, and again your can make those phone calls yourself.

Good luck!!

[mezzo soprano]

As a former banker, I can tell you that I'd MUCH rather hear from the customer to renegotiate a payment plan than a "credit repair" company. To me it shows serious initiative when the customer calls up, explains the situation, and works directly with the creditor.

We didn't often lower interest rates, but we have gone "interest-only" for several months with customers to help their cash flow. Believe me, 99% of creditors will work with you to help you through the situation.

:) Hope this helps.