This could be you. That is, if you don’t use a credit repair company like the ones outlined by AAA Credit Guide’s special report.
Here’s what you need to know about your credit score:
While the annual pace of new-home buyers has been steadily increasing during the first quarter of 2017, there’s one statistic that far too many people fail to recognize that also rises in connection with new home buyers, and that’s new home buyers with damaged credit ratings after buying their home.
For many, the process of buying a home can often leave them with an unintended surprise, and that’s a credit rating that suffers a massive downgrade after signing the papers on their mortgage.
While the mortgage application process can certainly be intrusive on just about anyone’s personal financial records, the main knock to a new home buyer’s credit rating comes from the combination of hard credit checks while applying for a mortgage, the increase in outstanding debt that adding a $300,000 mortgage to your has, as well as the credit applications that often follow for new home-related purchases like furniture and landscaping materials.
First time home owners like Bryan Lee, a 30 year old teacher living in Albany, New York who just purchased his first home a few months ago noted that his credit score decreased from a 755 before buying his home to now just three months later coming in at 587, a drop of 168 points within a three month period.
“I couldn’t believe how much my score had dropped” noted Lee, “I found out just how bad it was when I went to lease a new car and was turned down for having bad credit. I couldn’t believe it.”
For many, this newly lowered credit score can put a serious hold on everyday activities, and make things like buying a new car much more difficult than they would have been just a few months prior, and to compound the issue, most people assume that all they can do is grin and bear it and wait for their score to slowly rise back to its former strength.
However, some smarter home buyers are turning to credit repair companies to help them quickly rebuild their credit scores and undo some of the damage done when they bought their home.
“I knew that I couldn’t afford to just sit and wait and hope for the best when it came to my credit score so I figured the best option would be to reach out to a credit repair company and hope that they could help get things moving a little quicker” said Lee when asked about his plans for repairing his credit. “Thankfully I found a credit repair company that was very responsive and very helpful with my scenario, helped explained my options and helped me get things sorted out. I’m happy to say that 4 months after getting turned down for having poor credit my credit score is back up to 730 and rising.”
Like Bryan Lee, many first time home buyers have been turning to credit repair companies to help them rebuild their credit, with most people reporting that their scores have started rising again shortly after beginning work with these companies and taking proactive measures to rebuild their credit one day at a time.
Of course, preventing your credit score from suffering a drop like this is always preferable, in situations where it’s unavoidable, taking action and getting a credit repair company involved may be your best option to get on the road to recovery as quick as possible.