I am 26 years old and married, my husband and I have not very good credit, what to do?

Question

Not good credit, no saftey net, two young kids, want to buy a house. What steps do I take, where do I start

Answer 1

The first step is to STOP USING YOUR CREDIT CARDS. Cut them all up. Realize that you may not be able to afford all of the things that you think you "deserve" to have. You should NEVER buy anything on credit that you don't expect to be able to pay off in full on your next bill.

Next, set a monthly budget. Look at what you actually need to survive (such as food, electricity bill, etc.) and what you could potentially forgo (such as cigarettes, Starbucks coffee, etc.). In this budget, you should always start your monthly spending by paying off debt as much as possible.

Once you have developed a plan that will allow you to pay off all your debt in a decent time frame, then go to your local bank and ask to make an appointment with a financial planner. He or she will help to put you on the path towards actually SAVING money, with the hope of eventually having enough savings (and good enough credit) to buy a house.

This make take several years. Be patient.

Answer 2

First things first... You need a safety net of a $1000. Don't touch this until you have an emergency. Pizza, diapers, soap, etc... are not emergencies. After you have the $1000, start saving towards a house. You typically need about $500, called earnest money. Basically this takes the house you are looking at temporarily off the market. Now, the fun part. Make sure you are current with all your bills. Get a letter from your landlord stating you have been current on all your rent for the past six months. This will help you. What ever you do, don't go to a bank. Use a mortgage company. A mortgage company will shop around for a lender for you. They can really get good rates for people with little or damaged credit. My wife and I got our home after filing bankruptcy. It's a long tedious process, but its worth it. Check out this website: http://www.daveramsey.com. He's a blessing in disguise!!

Answer 3

Getting your credit score from a reliable source is a good start. You also need to learn the difference between GOOD debt and BAD debt.

The first link below is to the home page of a site that is really great at explaining various financial terms, offers suggestions for different situations, and generally is a good place to learn about how to manage your finances.

The second link will take you to that site's Good/Bad debt explanation.

The best thing you can do is stop using your charge cards. I know this is far easier said than done, but you are the only ones who can get this under control. It's not free money - in fact, it's very expensive money.

Have a rummage sale if your complex will permit it. This is a great way to get rid of stuff you don't need and make a bit of cash doing it. Apply the money to your debts.

Stop buying things you don't really need to live. No more "nice to haves" until you get your finances under control.

The bottom line is, you can be strict with yourselves or not. The results will be your reward .. or consequence.

Good luck .. you've got a tough road ahead of you but it CAN be done!!

Answer 4

The best thing to do first is DO NOT USE CREDIT ANYMORE! The next thing to do is try and consolidate all the loans. Stop using credit cards- if you spend more on the plastic than you can pay off in one month it is too much. Many Americans think this is like free money and is very easy to get caught up in lots and lots of interest rates. Do you really want to pay interest on what you think is a bargain, or spend only what you can on necessities? Good luck.

Answer 5

First of all look for a good job, who pays good. In the meantime, look out for an option to work online. Although it wont pay you like full time job but its good to make some extra cash. I am a part time worker doing work online at home, so I would like to share a link where you can make $600 in a month working at home. The work need to be done is posting a discussion and answering a discussion. the link is:

http://tinyurl.com/yhzzph

if you work smartly, you can even make $1000 or more.. it all depends on your usage pattern. I worked for 2 hour daily last month and i got paid $238 for the last month. Its not bad after all, i am happy and making more. After sign up, do mail me to know the tips on how to increase your earning.

Please let me know, if you have any queries. I will try my best to give you right answer

(PS: When u are planning for a home based online work, be very careful because most of them are scam and ask you to pay initial money. never pay money to any such site.)

Answer 6

There are all kinds of new mortgages for people just like you with not so great credit. I would watch for the tv ads, the newspaper ads, and in the real estate section of your newspaper for such mortgage companies and go in and apply- pick one place first, go in and apply, they will give you an idea of 1. if you qualify and for how much of a loan for a home and what your monthly payments would be. 2. If you need a substantial downpayment for them to approve a mortgage for a home for you and 3. if you need a co-signer to qualify for a mortgage. Also check out federally subsidized mortgages- you said you have two children, but you don't list your income, you may qualify for a federally subsidized mortgage. Good luck and remember, ASK them what you need to do if you dont qualify.

Answer 7

My husband and I had the same problem, we couldnt borrow 20.00 to save our lives, although we did get approved for a home loan but because our credit was poor, we had to put 20% down and at a rediculous rate, and we just didnt have that kind of money. So we went to a credit repair business and they fixed our credit for a whole year. After the year was up my husband was approved for all kinds of credit. We applied for a mortagage loan and was approved and all we had to pay was 1,800.00 for closing costs. After that he bought me anew car. What a deal. Now we make sure that we keep up with our credit and pay the bills on time every time.

Answer 8

do you know what your credit scores are? You need to get a copy of your credit reports and see what you can clean up. You don't sound like you're in a position to buy a house at this time. Once you start to clean up your credit and feel good about that, you will start to save more money, or possibly make more money.

Answer 9

You should have started earlier, like before you started having babies without a means to properly support them. You also shouldn't have hooked up with the deadbeat husband you ended up with.

You have no business buying a house when you have no money, lousy credit and a couple of future deadbeat kids.

Change your life. Get an education. Improve yourself.

Then consider buying a house.

If your husband prefers being a bum, the first step is to dump him.

If you enjoy being a bum and don't mind your husband being a bum then your place in life is to be poor and live in a dirty mobile home.

Good luck

Answer 10

Try working on line. You can make as much money as you want you just have to work hard and be dedicated. Follow your dreams and be able to do whatever you like in life.