Consumer credit agencies help clean up credit reports

     By Jim DeBoth
     Mortgage Market Information Services
      Reviewing one's credit report for accuracy is part of the process of buying a house. If all the information appears to be in order, that's great. But if errors are found, they need to be corrected immediately. And still, if the report is on the shaky side, it may help to consult a consumer credit counselor.
      "A lot of people come to us because they want to buy a house, but they need to get their credit report in order first," Lonnie Williams, a credit counselor in Texas, said.
      For those people with serious credit problems, Williams advises that they be prepared to postpone their home purchase.
      "You didn't get into credit trouble overnight, and it will take time to get out of it. If things can be fixed by writing a few letters to correct information or to explain a problem on your credit report, a consumer credit counseling center will advise you how to do it," he said. "However, if the problem is that you're in over your head, you will need help getting out of it, and that takes time. It could take several years. If you are deeply in debt, you won't be able to get a mortgage until you are out of it."
      Consumer credit agencies contact their client's creditors and arrange a repayment schedule. Once the client has completed the program, or reached a point where it would be realistic to talk to a mortgage lender, is when credit agencies provide an additional service, according to Williams.
      "We will give letters of support to you stating what you have accomplished," he said. "That can help."
      Anyone can get into debt, but not everyone is willing to go through the time, effort and money to get out of it. However, people who want to buy a house know they will probably qualify for a mortgage when they're done, which is quite an incentive to stick with the program.
      For more information about consumer credit counseling services, call 1-800-388-2227.
      --Jim De Both is president of Mortgage Market Information Services -- a national publisher of mortgage rates and information.

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