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Damaged Credit History

Posted by  on Apr 16, 2009
 
A damaged credit history can be improved by following some steps to get your credit back on track. To start, make a list of all the debts you owe, including creditor names and addresses. Prepare a realistic budget. If you are overdue on any bills, contact your creditors right away. If you have savings, consider using it to pay as many bills as you can. Be diligent about monitoring your credit report. Consider selling some of your assets with cash value. Consider getting a second job to pay off your debts. Consider other sources of money, such as borrowing from your retirement account.

After completing these steps, there are still more things you can do. Try to re-establish credit with former creditors. Contact former creditors with whom you had a good payment history. They may be willing to re-establish a credit relationship with you. Consider offering security on a loan. Secured loans are tied to collateral, such as real estate or cars. Remember that if you default on a secured loan, your collateral may be repossessed.

In addition, you can consider opening a secured credit card account. This credit is tied to a deposit in a bank account. You can charge up to the amount you deposit. Verify that the bank issues reports to the credit bureaus. Open a co-signed credit account. A co-signer is a person who is willing to sign with you on a credit or loan application. In the event of nonpayment by you, the co-signer becomes responsible for the debt; both parties’ credit ratings are affected.

If you are a Senior Homeowner, you may find the extra money obtainable with a Reverse Mortgage to be of great benefit to your wants and needs. If you qualify for a Reverse Mortgage and if you are at least age sixty-two and own your home. With a Reverse Mortgage, you retain full ownership and control of your home.

With a Reverse Mortgage, you may continue to receive income for as long as you live at home, no matter how long that may be. All Reverse Mortgages are non-recourse loans, which mean that you can never ever owe more than your home's value. Reverse Mortgage lenders can only look to your home's value for repayment, even if you end up receiving more than your home's future worth. With a Reverse Mortgage, you and the lender are insured against loss, so you can never ever be forced from your home. The Reverse Mortgage does not have to be repaid until after you permanently vacate your home.

Reverse Mortgages were created specifically for older Homeowners who own their home outright, or owe little on it. These seniors may use the extra cash for living expenses, or to just improve the quality of their lives. A Reverse Mortgage is a home loan for seniors that does not have to be repaid for as long as they continue to live in their home. They can receive a loan in a variety of ways. They can receive a Lump Sum of Money, or a Line-of-Credit that lets them decide how much of their equity to use, or a Monthly Advance for whatever term the Senior decides, or any combination of these Cash Advance Choices.

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