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Credit counselors

Question: I have recently went and checked my credit report and credit score. There are a medical bills that made it on to the report. This was when I lost my job and was going through a divorce.

Recently, I found a book at the book store about Credit scores. The book mentioned that Mr. X is a reputable credit counselor. I have checked their background with the BBB and have a clean reputation. They have done an initial credit analysis of my credit score. Mr. X said he did a Mortgage Type credit score which was significantly lower than my consumer credit score which I got earlier. Here I am thinking about buying a house. With this low credit score I am sort of worried now. Mr. X says he can clean up my record in 6 months to a year for close to $3000 and that will help my credit scores to start moving up. The money I owe is only about $1500.

Is there any way that I can clean up my bad credit and improve my credit score by myself? How can I do this dealing with the credit reporting agencies (Equifax, etc)?

Thank you in advance for any advice and pointers.

Answer: Sorry, but how much of this was due to bad decisions on your part? All three could be related to bad life decisions by you? Ever thought about just renting for a while? IF you’re able to get a mortgage, you’ll almost have to deal with a subprime lender, considering your background. I’d slowly build financial credibility by paying off debts and building a solid history before going for the house. RUN, don’t walk, away from this shitbag. The very fact that you even consider dealing with Mr. X very much makes me question your wisdom about the world in general. It will take time. And it will take some changes on your part in the way you live and think. First, pay off the debt. Then get a credit card or two (if you don’t have any). They likely will have to be “secured,” which means that your credit line will equal the money you give them as a deposit. This may seem somewhat crappy, but it’s a good way for you to start building a good financial history. Use the cards only as a charge card (don’t carry balances if you can avoid it, or you’ll soon end up back in the same state). Pay the balances off in full every month. Soon, the issuer will likely give you unsecured credit by increasing you credit line and/or giving you back the money you put down. Start living this way and you’ll soon see a whole new world opening for you. But NEVER EVER give some shyster money to “fix” your credit fast.

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