Posted on: 21st Jul, 2011 06:24 am
Hello,
I an currently trying to rebuild credit and apply for a home loan....preferrably Fannie Mae Renovation. In 05, my husband and I filed bk. We attempted to rebuild credit and obtained credit cards. Enter job loss and a serious injury. We now have credit scores of 533 and 583. I also have 3 credit card judgments against me. I have paid 2 of them off and am working on the 3rd. There are also a few misc. collections on our credit. We would like to start shopping in about 1 yr. Is this possible? What are some ways to increase my credit score? Secured,credit card? Auto loan? Is there anyway to make those judgments look any better? I am also interested in a great source to read and just be more informed.
I an currently trying to rebuild credit and apply for a home loan....preferrably Fannie Mae Renovation. In 05, my husband and I filed bk. We attempted to rebuild credit and obtained credit cards. Enter job loss and a serious injury. We now have credit scores of 533 and 583. I also have 3 credit card judgments against me. I have paid 2 of them off and am working on the 3rd. There are also a few misc. collections on our credit. We would like to start shopping in about 1 yr. Is this possible? What are some ways to increase my credit score? Secured,credit card? Auto loan? Is there anyway to make those judgments look any better? I am also interested in a great source to read and just be more informed.
A secured credit card or two will go a long way in helping you, as well as an auto loan if you can get a creditor to approve one. The scores you have will pretty much eliminate you from virtually all conventional lines of credit, such as personal or auto loans and major credit cards.
A good source of secured credit card may well be your local credit union - if you're not in one, join one and take advantage of better service and (typically) lower fees.
No, I do not work for a credit union; but I have in the past.
If you go the secured card route, make sure you use the card once each month for something nominal like a drug store or supermarket purchase, and then pay the debt in full when the bill comes. That'll save you interest, keep your balance down and help you build your credit. Having a zero balance is NOT a negative, contrary to what many people will tell you. If you can obtain two such cards, that's even better because you will want to re-establish as many lines of trade as you're able.
If you are able to get a loan with the assistance of a cosigner, that'll certainly benefit you.
Repaying your judgments and collections accounts as soon as possible is also a major benefit to you.
A year might be a tad bit soon, but if you begin quickly and stay on course, you'll definitely begin to see the benefits.
As for reading material, the web is full of advice - some good, some bad, some just plain useless. Pick and choose and see what makes the best sense (though often the worst advice can make sense). Be careful with your payment habits from this point forward and you'll reap the benefits.
A good source of secured credit card may well be your local credit union - if you're not in one, join one and take advantage of better service and (typically) lower fees.
No, I do not work for a credit union; but I have in the past.
If you go the secured card route, make sure you use the card once each month for something nominal like a drug store or supermarket purchase, and then pay the debt in full when the bill comes. That'll save you interest, keep your balance down and help you build your credit. Having a zero balance is NOT a negative, contrary to what many people will tell you. If you can obtain two such cards, that's even better because you will want to re-establish as many lines of trade as you're able.
If you are able to get a loan with the assistance of a cosigner, that'll certainly benefit you.
Repaying your judgments and collections accounts as soon as possible is also a major benefit to you.
A year might be a tad bit soon, but if you begin quickly and stay on course, you'll definitely begin to see the benefits.
As for reading material, the web is full of advice - some good, some bad, some just plain useless. Pick and choose and see what makes the best sense (though often the worst advice can make sense). Be careful with your payment habits from this point forward and you'll reap the benefits.