Our yearlong campaign continues with the next step on the road to home ownership: improving your credit. Hero's how you can whip yours into shape

STEP 2:

Boost Your Credit Score

Cash is king. But in the home-buying business, a good credit score virtually shams the throne. It gives lenders a snapshot of your financial life--so be sure to look good.

"If you want to purchase a home, your credit score will determine the interest rate and the affordability of the home," says Pamela Stalling, an ESSENCE Home Ownership Campaign advisory board member and executive director of the Consumer Credit Counseling Service of Northwest Indiana. "A good FICO score (the median is 723) can mean the difference between getting a 6 percent or 8 percent rate, which would add hundreds of dollars to your monthly payment."

To get your score in home-buying condition, follow these steps:

* Get your report. Order a copy of your free credit report every year at annualcreditreport.com. If you've already received your annual freebie, contact the three national credit reporting agencies--Equifax (equifax.com), Experian (experian.com) and TransUnion (transunion.com)--to get your report and score for about $15. Check your report for any errors, and dispute them immediately.

* Pay on time. And keep a low balance on your credit cards.

* Get a plan. Check out the Debt Pay-Down Advisor at bankxate.com to create a month-by-month plan for each of your debts for the next three years.

* Get help. Consider meeting with a credit counselor. To find a reputable agency, contact the National Foundation for Credit Counseling (nfcc.org), or ask your state's banking department (csbs.org) for the names of licensed agencies.

Go to essence.com for Step I and more credit-score improvement tips, tools and resources.

ESSENCE HOME BUYER #1

Savvy and Single

Name: Regina Jai Webb Age: 24

Hometown: Detroit

Occupation: Executive recruiter

Salary: $36,000

Goal #1: Save more money

We paired Regina with Damon Dyas, a financial adviser and certified financial planner for Ameriprise Financial in Southfield, Michigan, to make sure she's financially focused and ready to fly solo.

Problem: Regina's been dutifully attacking her debt, but now she needs to tighten the belt even further to ramp up her savings.

What she did: "I established a savings account that automatically transfers 5 percent of my biweekly earnings from my checking to my savings account. Most of my bonuses and commissions go straight into that account," Regina says.

Goal #2: Have a backup plan

Problem: As a single woman, Regina needs income protection to make sure the mortgage can always be paid. "The most common cause of foreclosures is that people get sick and can't work," Dyas says.

What she did: "I'm investigating my disability plan at work and looking into supplementing my employer's policy so that I won't lose my house if I'm ever disabled and unable to work," Regina says.

Goal #3: Improve her credit score

Pamela Stalling, executive director of the Consumer Credit Counseling Service of Northwest Indiana, had more work for Regina. Although Regina already has a favorable 683 credit score, Stalling would like to see that increased to 700 or above to improve her chances of getting the lowest interest rate possible.

Problem: Regina is disciplined, but her credit history is relatively young at five years old. There's no wiggle room for mistakes. She must be meticulous.

What she did: "My payments are always on time, and I manage my cards properly. My credit score has already jumped more than 100 points over the last year and a half. I stopped using my credit cards and just pay them off," says Regina.

ESSENCE HOME BUYER #2

Motivated Mom

Name: Latisha Williams

Age: 28

Hometown: Toledo

Occupation: Placement specialist for a nonprofit agency

Salary: $29,504

Goal #1: Learn her money style

Latisha met with Bill Harris, a financial consultant for Informative Financial Services in Toledo, who first had her complete Personality ID and Learning Style Surveys to see how she best digests financial information. Then he put her to work.

Problem: Latisha needs an emergency fund--the equivalent of six months of expenses. This will allow her to have a reserve for unexpected costs.

What she did: "I'm already saving $250 every month, which is set aside for my down payment. I'm squeezing as much as I can, so I'll redistribute that amount every month so that $150 goes toward my down-payment fund and $100 to start building an emergency fund," Latisha says.

Goal #2: Plan for the future

Problem: As a single room, Latisha needs a will so that the courts won't decide what happens to her assets. She needs life insurance to make sure her daughter's financial needs will always be met, and she has to set up a retirement fund for life after work.

Whet she did: "I'm looking at term life insurance policies, aside from what my employer offers, just in case I should ever lose my job and then lose my insurance. Bill suggested a company where I could start with as little as $25. I'm also looking for free legal services in my area to get help with a will. Right now my assets are moderate, but when I own my home, I'll need to make sure my daughter is the beneficiary; a will keeps my family or the state of Ohio from making that decision," says Latisha.