how can a poor broke person fix their credit and gain enough money to buy a house for themself?

Answer 1

one of the best things to do is get a credit card and charge like $10 on it and pay the minimum (make sure its only $10 if u have money that isnt being paid in full its waisting ur money). and make sure to pay all of your bills on time and dont carry unused cards or checking accounts

Answer 2

Not to sound unsympathetic, but you didn't get to be a poor, broke person by accident. It happened because of poor planning and poor financial knowledge. Educate yourself and set up a plan to become more financially independent. Take control of your finances and your relationship with money. Get out of debt. It is possible and as it starts to go well it will snowball in a positive way.

There are two aspects to finances. Offense (your income) and defense (spending). Look at defense first. Where does your money go. Debt reduction and savings don't just happen, they have to be priorities. You can't plan on saving what is left over when you get your next paycheck because there will be nothing left over.

You need to cut large and small expenses. The large ones are the ones you pay every month. Even if it seems small, by the time you multiply it by 12 it is large... Rent/cars/communications/insurance, etc. all need critical evaluation. Are you spending too much on rent (is it more than 25% of your gross income)? Do you have a car payment? How much is your renter's insurance (what - don't have it? Get it ASAP)? How much is your car insurance? Life insurance? Health insurance? Critically look at every monthly obligation.

If any of these free up some money, start paying your debts. You should start with your highest interest rate debt and pay extra on it until it is gone. It might be a good idea to split the extra between the credit source and some savings until you have $500-$1000 set aside for emergencies. Pay the debts off in interest rate order (20% first, 15% second, etc.).

Check your credit every 3-6 months. See what is causing low or lower scores and start fixing it!

Now, onto offense. If you really don't make enough and can't figure out where to cut, then you need to make more money. Get a second job. Getting a house and out of debt is that important!

Good luck!