Nov. 24, 2008 - Check your credit score for the 2009 residential real estate market

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What Home Buyers Can Do To Prepare for the Residential Real Estate Market in 2009!

I read an article recently on RISMedia.com which was very interesting, and I'm sure it will be to others as well.  Here are some of the features:

Those clients that are waiting for the downturned housing market to level out or right itself can do some preparatory work in the mean time.  The first step is to check your current credit score.  The results may surprise you,  because credit card companies are reducing credit limits or the amount that you may spend.  This causes your existing obligations to be higher than they were before because of the reduction in the credit limit.

The big reason for the credit activity above is because of the increase in risk existing today.  Lenders are adjusting interest rates and fees and contacting you earlier when your payment is a few days late.  Another feature that lenders are exploring is measuring your usage of your credit card.  Because they have issued a credit card, they expect you to use it or they will lose interest in your account.  Lenders are also freezing home equity lines of credit. 

Here is a summary of what you can do to prepare for 2009:

l.  Check your credit report - Many negative items should be removed after seven to ten years.

2.  Don't get close to card limits - Pay down balances as much as possible.

3.  Keep accounts active - Accounts get closed with little activity.

4.  Pay bills on time - If your payments are getting shakey, contact  the credit card  company  ASAP.

5.  Don't apply for new cards - The application for that new card will have a negative effect on your score.

 Joe Skye