how can i raise my credit score or get a loan with bad credit?
my husband is applying to buy a house but we cant because he has very little credit and mine is about 515 but we dont know how to fix it and raise his fast or who will let us borrow with poor credit plz help us out greatly appreciated
Tagged with: poor credit
Filed under: "How to fix Bad credit so I can buy a house"
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Credit is something you have to build over time. One think they are looking for is your proven ability to pay off debts over a long period of time. You can establish this by getting small loans of a grand or so for about a year or two. By making regular payments over time, your credit score will rise. If you cannot get a loan on your credit, you can either get a co-signer or go for a secure loan if you have savings. In a secure loan they will hold some of your savings a collateral for the loan but you will get it back when the loan is paid off. Another thing they are also looking for your ability to maintain a line of credit i.e. a credit card. I generally keep two credit cards. One I use for every day purchases and pay off at the end of every month. I do not use this one unless I have the money in my bank account. The other I use for large purchases such as furniture, appliances or electronics. This one you want to pay a set amount on (higher than the minimum payment other wise it will never be paid off) and pay it over the next 3-12 mos. depending on the size of the purchase. Also, if you have some extra credit cards that you do not use, close the accounts. When they look at your credit, even though they do not have a balance, they do represent the possibility of owing that much.
Most importantly you do not want to over extend your credit beyond what you can pay. Your credit is like your financial reputation. It takes a lifetime to build and a second to destroy.
I know it’s probably not the answer you were looking for but I hope it helps.
The way to fix the credit is to stop doing whatever got you in this place. I don’t know if you had a misfortune or you were spending more than you earned. For most people who have bad credit, the reason is that they spent more than they earned, and then they could not pay their loans.
You can start paying off your loan. Make sure you don’t miss any bills. Get rid of any expensive item for which you are paying installments. For example if you own a luxury car, get rid of it and buy a cheap used car so that you don’t have to pay monthly installments for the luxury car. If you and your husband don’t work, start work. I know it is hard in this economy, but that is reality. Without work you can’t get your credit up.
There are some companies which promise to repair credit. Be very careful in dealing with them. Some of them may be good, but there are some which show a shortcut. Remember, that shortcut is the longest way from point A to point B. If any company promises that you can get great credit fast without doing anything, rutn 180 degrees and run away from them. If a company lays out a plan that includes responsible spending, getting a job, paying out your loans, they might be credible. Of course, check about companies on BBB.