Okay, no one saw this coming. This is not the sort of thing most people do. Or, at least, not the sort of thing most people do that makes them very wealthy. This is for those average, peaceful people, who despite everything, still get to enjoy the benefits of having a house and a family and a nice home to live in. This is for those regular people who don’t have the spare bucks to send the kids to college or who are just looking for a nice home to raise that family when they have one. This is for those people who like the house-renovating, fix-up, “do-it-yourself” look. This is for those who are unhappy with the neighborhood they live in; not happy with how the children are disciplined at school; flip the TV or read a book. This is for those people who are sick of moving every year. (Potential buyers of course.)
This is for those who, for whatever reason, have bad credit. This is for those who are not of retirement age yet. This is for those people who have been rejected by the bank, the landlord, the insurance company, and anyone else whose needs require a buyer to move out of his or her home quickly, and with very little responsibility for the actual move.
But what can you do if you have bad credit? Here are some suggestions:
First of all, make sure that you have reviewed you credit resume before you even think about submitting your listings. Because if there’s a slight blemish on there, chances are it’s affecting your credit to some degree. (It might also be a red flag for hiring a mortgage broker or a lending institution, who’d be able to point you in the right direction to arrange financing.)
The next step is to get copies of your credit report. That way, any discrepancies, if there are, will be dealt with swiftly. You can get it from one of the three credit agencies: Equifax, Experian and TransUnion. There are a number of companies who offer credit reports online, but there are probably a couple of dollars you’ll have to pay that’s worth it, when you’re looking for a bargain conversion.
To get the best deal when it comes to fixing bad credit, be realistic. The ideal of any house is that it will look perfect after you’ve spent thousands on its renovation. You may even hope to move right into your dream house and turn out all happy, productive citizen. But rarely is this ever the case. You are likely either putting unrealistic expectations on your own house – that out of the every house, you can turn into the most beautiful shelter on earth – or you’re fooling yourself into thinking that eventually things will turn out all right, and you and your family will be living in a comfortable, everything and amenity house.
So you want to fix bad credit now, is that possible? It may not be, but you may be able to have an excellent credit score which will help you get better deals on your dream house. You just have to be realistic and work towards that goal.
Your current credit score: If your credit score is above 620 and you’re trying to get bigger loans, chances are you should do so now and get your score as high as possible. If you don’t, make an effort to pay down your debt, which will increase your credit score. Also, make sure that you don’t open any new credit card account for a few years after buying the house, because that will gradually increase your debt and lower your credit score. You will be able to lower your credit score if you have a history of constant late or missed credit card payments.
When you’ve reviewed your credit, make sure that you have no open accounts you’ve never used. Closing credit card accounts will lower your score, but opening new ones may help you qualify for a loan.
Too many credit cards is also risky. If you’re having trouble paying the monthly minimum on your credit card bills, then you need to carefully review which ones you must keep and which ones you need to let go. And if you have to, write up a letter of explanation, showing that you can’t meet the bills on the cards. This will greatly improve your credit score, because if the accounts don’t go unpaid, than the credit score may be greatly lowered.
ipping the market to a potential buyer: You may be buying a very expensive house, and at the same time you may not have enough money to repair it. This is a risk you should never take unless you are absolutely sure you will be able to sell the property for profit.
Paying several of your debts off by one large payment is the best way to improve your credit score.