bad credit??

Question

I live in Ga. I have bad credit from when i just turned 18 and owe a little under $4000.00. I havent even paid anything for 4 years now. Any advise on how I can resolve my credit and pay for it monthly so I can buy a house within a year?

Ga is GEORGIA.. and i am currently 22. I have a good steady job now compared to when i was first on my own...but with 3 kids, i cant afford to pay for everything all at once. I want to own a house under my own name instead of depending on my parents, which currently owns 9 properties.

Answer 1

What's GA? Anyway , I'm not sure of the law in the states if that's where u r. But there are many debt resolving companies that can help you out. I personally had really bad credit from when I turned 18 but I had all the interest on my loans and everything stopped and I used to pay around £1200 I now pay £220 and it will all be gone in another 3 years. The company I went through are brilliant. If you need more info contact me. I am online right now.

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Answer 2

I would not pay a thing! Your credit history can be erased in 7 years, so you only got three more years to go. I know it seems like a long time but it will go by fast.

Meanwhile start saving, you will need a nice size deposit from 5-10% of the home purchase price. Try and get a credit card of some kind, put all your groceries and gas on it, pay it off monthly. Make sure you budget well and DONT over spend. Make sure all your utilities, phone, etc are in YOUR name. Build some credit in the next 3 years. You will need your tax papers form your previous 2-3 years when you apply for your home loan, so keep them safe.

Then when you reach your 7 year mark (this is 7 years after you made your last payment) contact all 3 of the major credit bureaus and ask for a copy of your credit report. You get one free copy per year. Check everything on it, if any wrong info write a letter, correct the wrong info, and ask them to remove the following credit information as the status of limitation has expired.

Your goals should be:

Establish good credit in 3 years

Save aprox $10,000 for down payment on a home & moving expenses in 3 years.

To me this is your best option. Considering you are short on cash and a single parent with 3 kids it will be difficult to pay off the 4K and have you even though of all the late fees that have piled up and interest about 20%. Also, consider the fact that no bank is going to give you a loan while you are trying to pay an old debt off. They are looking for good payment history.

Good Luck!

Answer 3

Contact the creditor and find out how to make good on this loan. With this bad mark on your credit, it will be difficult to qualify for a home loan. By now the amount is likely significantly more than $4,000 due to interest, late fees, collection fees etc. If you can manage a "lump sum payment" you may be able to work that out with the creditor, to accept a lower amount.... and make sure they report the debt as PAID AS AGREED on your credit report.

Have you checked your credit score at the 3 Bureaus to see what they are? It should be at the very minimum 620.

Answer 4

Depends on the interest rate you have now. If its high you can put it into a credit management program where your interest is 0 - 9% and you make 1 payment per month for all creditors. You can always pay more than what they quote you to pay it off sooner. Or you can make payments each month at your current interest rate.

If you aren't working but get some kind of income the credit management places will NOT charge you a fee.

Answer 5

I don't thimk you will be able to buy a house with bad credit at the age of 18 within a year. The only way you could do this is by paying for 100% of the house in cash. Then you will have to deal with the utility comapnies as they may not give you credit either.

Answer 6

Making a payment on a collection account will restart the 7 year credit clock. If you make payments, the only advantage is avoiding a judgment. If there is no indication that the collector is pursuing a judgment, then the best course of action is to wait until you can pay off one of your accounts in full with one check.

This may give you more informaiton on dealing with collectors:

Answer 7

A house at age 19 with bad credit? Unless that house has wheels, you're dreaming.

Answer 8

If your parents own 9 properties, perhaps they could loan you enough to settle the debt.

Answer 9

you con ry cash call then save up ,the house thing is vurtrally impossaple ,it might take a little while

Answer 10

call your creditors....arrange with them some type of payment plan.