Rentals in Traverse City>Question Details

Peter Pietra…, Home Buyer in Sault Sainte Marie, MI

Is there any hope with poor credit?

Asked by Peter Pietrangelo, Sault Sainte Marie, MI Wed Mar 13, 2013

My family of 4 just moved for a job in Traverse City that is paying about $32k/year. Struggled in the job market last couple years with student loans, so our credit isn't terrific. Are we destined to be homeless?

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There's always hope.......

The best way to realize a financial recovery is with a plan, a vision, and a committment. The mistake too often made is when people seek instant success....

Review you budget, make a plan and focus on improving your credit. Better times are ahead of us!

Best wishes,

0 votes Thank Flag Link Thu Mar 14, 2013
Peter, You need to sit down with a local Bank Mortgage Officer. They will help you put a plan together for future financing. In the mean time you will need to rent or if you are lucky you may find a home with seller financing (Land contract) terms. First I would see the Bank and get on track. The sooner the better. Thanks,
0 votes Thank Flag Link Thu Mar 14, 2013
Hang in there, Peter, credit scores are not rocket science. The process of correcting one can take some time though. Remember, the credit score is really just a method developed by lenders to easily identify those who are willing to repay the money they have borrowed. That's simple enough...


I'm not so naive that I don't recognize there are exceptions and that sometimes (medical emergency, auto maintenance, etc) stuff just happens that forces us to spend beyond our means. But I'm also not so stupid to recognize that the VAST MAJORITY of the problem comes from easy money spent carelessly on things like "kickin car stereos" , or $200/month cell phone plans, or a cable package that includes 1000 channels and every premium movie channel known to man.

In the early days I used to keep a check book register in my wallet and record credit card purchases in the same way one would record checks. Each entry would decrease the register balance and when the balance hit zero, the card stopped getting used until the balance (monthly pay) was restored.

But if you've dug yourself into a hole, you can still dig yourself back out! Start by repairing previous failures to pay. If there are outstanding debts, pay them off or make arrangements with the creditor to pay them off over time or at a discount. Many creditors will work with you, since they stand to get far less of their money back once they refer the debt to a debt collector. And talking to your creditors definitely demonstrates that you are WILLING TO REPAY YOUR DEBT, which takes us back to what credit scores are really all about. If/when you find yourself unable to make a payment, get hold of the creditor, let them know your situation and work something out. Make sure they understand you are willing to repay, just having some difficulty actually making it happen.

And then, when those tough times come, you will have a choice...buckle down, tighten up the belt and get rid of some expensive things you don't really need, or further jeopardize your credit score by failing to pay. The choice is really our own to make, even when life deals us "surprises".

Unforturnately, most people do not think about this subject seriously until it's too late. You call the bank to get a mortgage to buy a home and "oh no, my credit is no good???". That really shouldn't come as a surprise to anyone. But if it does, it's never too late to fix it. Best of luck with your purchase...Jim
0 votes Thank Flag Link Thu Mar 14, 2013
You are not destined to be homeless. Many apartment complexes and landlords of homes will take people with blemished credit. You just have to start paying your bills on time.
0 votes Thank Flag Link Thu Mar 14, 2013
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