I have had BAD credit for at least 10yrs and I have a student loan in collection which I am making a payment this month. (which i will take care of this month) But I want to buy a house and go back to college ... what is the best SENSIBLE advice. Thanks!! ;-)
2007-01-12 11:34:07 · 3 answers · asked by lisa n 1 in Business & Finance ➔ Credit
obtain a copy of your credit report from all 3 agencies: experian, equifax, and transunion at www.annualcreditreport.com and go over every item on your report. make sure there are no errors, omissions, additions, or other discrepancies. identify those debts that are negotiable and those that are not, and contact the creditors to see if youre able to create a payment schedule that is satisfactory to you both. try to pay down the most expensive money first -- that is, the debt that costs the most each month relative to the principal owed.
once one debt is paid off, do not pass go, do not collect $200 -- apply that same amount to the next debt. once that is paid off, apply that monthly payment to the next debt, and so on and so on until youve cleared all debt. any collection account on your credit report thats more than 24 months old is not worth paying off -- creditors have more than likely written off the loss.
itll take you about 3-6 months of clean payment history to see a significant gain in your FICO scores. 12 months after that, a mortgage should be a snap to procure.
2007-01-12 11:48:37 · answer #1 · answered by John K 2 · 1⤊ 0⤋
People serious about their finances usually get a 2nd job.
They pay off all their debts, then squirrel $$ away in stocks and bonds.
Then they have the 20% down for a house, so they do not have to pay PMI & they get the best % rate.
Working a 2nd job often leaves them little time to waste $.
If I did it, anyone can . . . good luck if you are serious.
2007-01-12 19:45:07 · answer #2 · answered by kate 7 · 0⤊ 0⤋
I hope this helps you.
I found this to be useful for me to help get rid of bad credit:
Step-by-Step Credit Repair Guide
http://www.debt-loan-refinance-mortgage-credit.com/category/Step-by-Step-Credit-Repair-Guide.html
2007-01-13 06:45:25 · answer #3 · answered by marie a 2 · 0⤊ 0⤋