Trying to get my credit back on track to buy a house

Hi Mike! You sound just like me! I???m 32, married, and have a 11 year old son. We too would like to purchase a house some day! But both of our credit files are trashed.

First thing you want to do is get current on all of your bills. Easier said then done, I know! It took me a VERY long time to get current and stay there!!!!! Having a written budget was they key for use here!

You???ll also need to get a credit report for both you and your wife, from each of the three major credit reporting agencies. Once you have it, go over each entry carefully, looking for errors. Read around these boards and learn what can be disputed and how. Learn about the SOL (statue of limitations) in your state. There???s a lot to learn, but these boards are awesome! I???ve lurked on this site for over a year now and have learned so much!

It???s not hopeless, believe me! I thought my husband and I were hopeless. But it???s getting better, one step at a time!

Good luck!

Good stuff Stonebrook.

I'm a nationwide loan officer so I will chime in. Most importantly, start paying what you have on time. Your really not that far from owning a home. Most lenders now require a 620 middle score. You will also be required to put 3.5% down. One of the things you have to stop doing is living paycheck to paycheck. You need to put your self in a position where you can start putting a little back each paycheck. You would be suprised at how much money you could be wasting each month. I would sit down and write your monthly bills down. I would get on a budget and look where you can cut some things. Cut out cable, cell phones, or maybe get rid of the home phone and keep the cell phones. Either way I would start looking closely at getting on a tight budget. It will totally stink at first but as time goes by it will make you feel good that you've stuck to a budget.

I hope that helps.

Please feel free to ask more.

Thanks stonebroke and sassy lil brandy. We will definitely try our best. One more ?. Out of curiosity how long (on average) will it take for our credit score to increase once we start paying the delinquent accounts we have? I know it will take time I guess I have no choice but to be patient and do what I supposed to do in order to get back on track.

Thanks again!

Sometimes it doesn't take very long at all. Some folks will instantly see their credit score go up and some folks it can take about a year. But just think, this time next year you could be buying a house.

I would go to www.annualcreditreport.com and start disputing some of the stuff. You might be suprised at what you see. Some of the stuff reports incorrectly and some of it may be too old to be on your credit report.

I had a credit card placed with a collection agency. It has been paid in full for over a year now. How long will this affect my credit. This was the only negative I have ever had and it was by a stupid mistake I made that caused it to be over 60 days last when it was placed.

any accurate negative will remain that way for 7 yrs + 180 days from the date of first delinquency that brought the account to its present standing...very confusing..look on your trans union file they usually have an estimated deletion date and its around 7.5 years from the dofd...

I want find away to get a text messge when my credit score is good enough for a fha home loan