I want to buy a house next year. The problem is in the credit world I am a bum. I have lived the last 3-5 yrs in major depression and aloud it to rule my life and credit. I have pretty good income for my area and will have about $20k to put down next year. I need advise on how to get my credit back on track and fast. Here is the rundown of whats on my reports:
1. GM car loan pays as agrees 15 months old 8 30 day lates only 1 of which may 2012 $461 pmt per month
2. Sandar car loan pays as agrees/pif
3. 6 direct student loan accounts currently in default (should be paid 6/22 throught consolidation) total $20k
1. 1 perkins studient loan in collections trying to add to direct loan consolidation. 6K
2. Macy's charge off from 7/08 $315 balance
3. Cap one charge off from 8/08 $0 balance
4. Midland collections related to the cap one account $1,654 bal assigned 2011
5. direct student loan account (related to the 6 account above) $0 bal
6. Jefferson capital $900 related to a wells fargo account I was able to get deleted
1. 1500 medical assigned 2011
2. 1200 medical assigned 2011
3. 913 comcast assigne 2011
4. $2,278 not sure what this is assigned 2011 currently disputing
I just started this jorney last month my scores are eq - 433, ex - 430 tu - 486. So far I have cosolidated my student loans to get them paid in full and a new tradeline that I will keep postive and alway pay on time. I have contacted jefferson capital I will pay them the requried fee to get the collection removed and start an emblem card so that I can get revolving line going. I have contactact midland for a settlement amount.
my question is what should I do next? Is it possible for me to get a 620 in 14 months my lease will be up August 2013 I will have no late payments in that 14 month period. Should I work on paying off the collections or saving for dwnpmt. My focus is not really a high score just yet I will get on that once I have my house. I am more concerned with qualifying for a mortgage. from my reading here paying collections and not getting them deleted will not increase my score and as long as they are over a yr old I will be ok for FHA but I have to get to that 620 - 640 for better rates. can this be done.
Any suggestions would be helpful.
Never say never, My advice would be to start sending GW letter and PDF letters where appropriate, but this should be if you could afford to pay in full. it is not going to be easy , it took sometime for your credit to get to this point and would require patients, time to fix , but yes your plan is realistic, just dont give up.