If the negative information contained in your report is accurate, it cannot be removed. Don't be taken in by claims to the contrary. Negative entries remain on your credit report for 7-10 years. Still, there may be something that you can do. Contact each creditor to discuss your options. Some may be willing to bring a seriously delinquent account current with just a few payments. Others may agree to reduce your interest rate to make repayment more manageable. You may even find a creditor willing to offer a settlement (you agree to pay a percentage of the amount due to settle the account). Another suggestion - pay all of your bills on time, starting now. Your credit report will reflect timely payments. Past mistakes don't have to haunt you forever.

Your credit score

Your credit score is a computer generated number that objectively predicts risk based on your credit history. Scores typically range between 400 and 900. You are more likely to secure a loan with a score in the higher range. For all but a small niche of lenders specializing in high risk (and often predatory) loans, scores in the lower range present too great a risk.

Knowing your credit score, as well as what is contained in your credit report, can help you develop reasonable expectations about the lending process. You can put your best credit file forward by clearing all blemishes as best you can before beginning the application process.

Coming up with your down payment

If you are considering homeownership, you may be nervous about the prospect of coming up with the down payment. This amount, usually between 3% and 20% of the cost of your home, is paid upfront and not included in your loan.

Depending on the cost of your home, your down payment could total several thousand dollars. Don't panic, get creative.