newbie advice

[Anonymous]

I've been reading this forum for the last 2 weeks and decided to ask all of you for advice.

My situation: Scores: TU=612, EX=573, EQ=612.
3 judgements: 1 eviction settlement (falls off Oct. 2008),
1 car insurance settlement (falls off Feb. 2010),
1 Discover card settlement (falls off Nov. 2012),
3 collections:1 old medical bill ($180, falls off July 2009) which I
have VOD'd CMRR & disputed online but came back validated
by the CRAs,
1 electricity account that is paid, and one cable bill
that I disputed and is listed as "consumer disagrees."

I currently have no ccs and no open accounts. My goal is to buy a house in the next 3 yrs. and get a new (or used) vehicle sometime soon. My new job pays about $13,000 more per year so I plan on living at the same income and using the new money to straighten out my finances and improve my credit.

I plan on getting a secured card w/ low limit first. Should I get more than one? I'd also like to get a card just to pay gas but don't think I will qualify right now. I was thinking I would get a secured or several secured cards, then let that help my scores until spring of next year. I will have been able to save up for a nice car downpayment by then and think my credit would have improved. Adding my car loan payments to the score it should improve even more. then by middle of 2009 should I be in a good position to pre-qualify for a mortgage? Or should I be able to get one soon after getting a new car without awful interest rates? Any thoughts on my strategy??

[Anonymous]

[IMHO] In my home buying experience the lenders tended to not care about stuff that's bad if it's been paid. Yes you will pay more in interest and PMI but they will give you a loan if all the bad stuff is settled out. [/IMHO]

That being said I would keep going through the repair process (as you have been) and certainly AVOID high fee CC's like 1st Premier and stick with the secured until some of those baddies fall off. Then go for a Credit Union card.

I think in a couple of years you would have no issues getting a loan if you can keep your nose clean.

[Anonymous]

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alkizz wrote:
[IMHO] In my home buying experience the lenders tended to not care about stuff that's bad if it's been paid. Yes you will pay more in interest and PMI but they will give you a loan if all the bad stuff is settled out. [/IMHO]

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PMI only if you're in less than 20% equity position...

Hang around these forums for a little while, and you'll find out that it doesn't take 2 years to get where you need to be...

Good Luck.

Rob