You can read my blog series Top 10 Credit Myths at the link below. Good luck!
For a simple 8 step system to repair your credit, along with step-by-step videos that guide you through the entire process easily, visit http://www.RepairCreditTrauma.com.
If you have any questions, feel free to ask!
Along the same lines, before you can get back in the race, you have to heal, rehab, and establish a good training program. In your case, you have to mend your credit and establish a good payment history again.
The reason I tell people to take a class is because of the psychological factor or the discipline issue (whatever you want to call it).
I used to tell non-qualifying clients to get material to read from the library or get information online.
When I would follow up with them they would tell me that they don't have time. I have found it much more effective to send them to a free class so they put it in their calendar and actually attend.
In truth though, you can much more information online or through books than what is given in these classes.
It is very much in your best interests to get and keep a good credit rating. Note: cutting up or canceling your credit cards usually will hurt, rather than help you.
You may easily Google how to attain good credit, without a fancy class or giving anyone at all your money.
Besides for possibly not qualifying because of a low score, many people with low credit pay more for their car loans and credit cards.
A larger percentage of your income will be taken up by these higher bill, leaving you less income to use to qualify for a mortgage.
For example, if you earn $3000 a month, you might qualify for a mortgage of $1500 per month (taxes and homeowners insurance inclusive). If you have $300 monthly minimums in credit cards and a $400 monthly car payment, you will only qualify for a payment $800.
People with good credit pay less for their other debts, allowing them to borrow more money, while people with bad credit pay more for their other debts so they can't borrow much.
Generally when someone has bad credit, even if their score is high enough, they may have collections and judgements as well on their credit report and most of these would have to get paid off before getting a loan.
If someone has bad credit there are ways to clean it up. They should take a credit counseling class offered by many organizations in most states.
If you have negative issues over 2 years best address those concerns for home purchase. If negative items are less than 2 years old not much can truly happen BASED on number of reasons, what issues are.
Lenders look at ability repay loan, as if you were loan a personal friend money, if they can't get obtain a loan from a bank why risk your hard earned money on a person who is risky
If your scores are 620 and above, ability pay 3.5% or more down payment, amount owed and income are in balance , 2 year employment history you may not have any problems
Each month you pay your bills on time your credit scores increase.
Higher credit scores better off your life is, you have lower interest rates on anything you want to purchase banks are happy to do business with you.
National Featured Realtor and Consultant, Texas Mortgage Loan Officer, Credit Repair Lecturer
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