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Money talk: Foreclosed? Here’s how to rebound

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By Quad-City Times | Saturday, October 11, 2008 |

Q: For someone who has lost a home through foreclosure, what are some steps to quickly recover.

A: Brian C. Boyles, president of real estate lending for American Bank & Trust, said he understands why many consumers face credit remediation with fear and trepidation. “With the exception of recognizing that the best score wins, the average home shopper knows very little about the whole credit scoring process. Subprime borrowers who are eager to move into A-Paper territory often find themselves at a loss when trying to find ways to upgrade their credit history. The good news is there are ways to improve less-than-perfect credit scores and obtain a loan for the home you really want.”

He said the first step is to get a copy of your credit report. The Fair Credit Reporting Act allows consumers to receive one free credit report annually. There are three major credit bureaus: Equifax, Experian and Transunion. Since entries can vary across bureaus, you’ll want to request a free report from each of the three companies. (Go to www.annualcreditreport.com).

He also said it is important to know just what a good credit score is. Most A-Paper scores begin around 680, although this number may differ slightly among lenders.

His other tips include:

n Evenly distribute your credit card debt to change the ratio of debt to available credit.

n Keep your existing accounts open and active.

n Keep credit inquiries to a minimum. Each inquiry into your credit history can impact your score.

If you are facing severe or complicated credit issues, then you will probably want to enlist the assistance of a professional credit repair company.

Money Talk is an opportunity for Quad-City Times readers to ask questions about the current U.S. financial market upheaval and how it affects all of us. We will submit your questions to Quad-City experts in the areas of business, finance and education. Questions may be e-mailed to Business Editor Deb Brasier at dbrasier@qctimes.com.