Valued Contributor
Posts: 3,406
Registered: ‎12-19-2012
Re: Owner financing
You typically need a mid fico score of 640 for a mortgage loan. Some lenders will do a 620 and only 1-2 in your area will do a 580. So you need to clean up your reports before you can get qualified for a mortgage loan.

I would try to PFD the collections and get 2-3 cards to build your credit. The only cards I think you can get right now are a secured card, or one from First Premier and Credit One but I would avoid them like the plague because their fees are unreal.

I think your best plan of action as far as credit cards go is to get a secured MasterCard from Capital One. Pay in full each month for 6 months and then apply for the unsecured Capital One Cash Rewards card for average credit. It has an annual fee of $39 but that pays for itself through the 1% cash back you get on every purchase plus you get 50% cash back on the total cash back you earned that year. I have had the card since July and I have gotten $97 of cash back on purchases I used to pay for with my debit card. I am waiting until it hits $200 and then I will request a check and deposit it into savings. I expect to get $300 in cash back this year total from my Cash Rewards card. I use it for gas, groceries, food, and 80% of my bills.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014