Low Credit Score

Expert, localized Los Angeles answers provided by Heather Roy

Low Credit Score
	Dear Edith: My husband and I are trying to refinance our home. However, our credit scores are below 600 and we have been deluged with offers from companies that charge outrageous closing costs.Can you recommend or direct me toward a reputable company that will not try to eat up our equity in closing costs?

	I can't, but I am glad to hear that you balk at paying unreasonable closing costs and interest rates.When you have poor credit, lenders will charge high fees to make up for the extra risk you represent.Too many people feel that more borrowing is the way to cure their problems, and they pay no attention to the terms.Then they're caught in a vicious circle, and they end up in even more trouble.Your best bet right now is to avoid any further borrowing, pay bills on time even if it's a struggle, and gradually heal your credit.
	Edith Originally published on April 3, 2005

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