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Bad Credit score..In need of home loan

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Hannahsmom
Member

Bad Credit score..In need of home loan

I have spent the better part of my twenties buying and spending and just really not even knowing what a credit score was.  Fast forward to my Thirties and now I am a mother and wife and have finally started to see just how important credit is.  Good news is that I did not have credit cards back then!!  Bad news is that I have them now and I am nearly maxed!!  The home that my family is living in, and we have been buying for the last 4 years, belongs to my parent in-laws.  They have now told us that hey are needing to sell quickly to refinance their own home... Problem is we are not "credit score" ready.  I have a middle score of about 580 and I really need to get that up some more before attempting to purchase a home. I have untill about Feburary before we have to either buy here or move...  I have enrolled in a credit repair program and I have made a gameplan for paying down the existing credit cards that I have. but I feel like that is still not going to be enough... Total credit card debt is about 3500.00 not to mention two vehicle loans with a combined debt of about 50,000. I have about 8 old collection accounts, all medical excpet for a phone bill....  a late payment on my student loan -but the thing is that I was still in school and that was their error.. I should not have went into repayment so soon. They put a grace back on but the late payment is still there... and I have a late payment on my car note, (my job switched their payroll agency and our checks got delayed for a week and that was the week it was dueSmiley Sad )  I really want t be ready by the first of the year but I have limited time.  Does anyone have any suggestions for making this process smoother? Do I pay my credit cards completely off or do I pay down to a certain point? Any advice would help!

STARTING: EX-515 TU-570
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KoolDev
Regular Contributor

Re: Credit score! Whats that? I just need a home loan:)

You can take several steps.   Make yourself  a list of your negatives, how much is owed to who, how old are they etc.   You can try PFDs on them.  If some are paid off already, try GW letters and phone calls.  Personally I would not pay off all the cards. you would deplete what cash you have.  Get the utilization down below 20% if you can.  Better would be below 9%.  

 

If you are a little more detailed here, some of the folks can really put you in the right direction. 

My Sock Drawer: Care Credit $4200-0, JCP 2100-0, Chase 3000-0, Chase Freedom $4500.00-0, WF $1000.00-0.00
In Use: NFCU Visa Sig $17.5k- 0.00k
I still have too MANY CARDS
Starting Score 538
Current Score Oct 30-14 701 fico Eq-- 745 Fico Tu-- 713 Fico Ex
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