Would you like to buy a home, but you have a less than stellar credit report? Do you have medical bills that were written off? Or even a bankruptcy in your past? Are you back on your feet job-wise and financially, but still suffering the "sins of the past" every time you apply for new credit?
Although every person who is turned down for credit has different issues, some things remain the same. And in general, the following plan can apply to just about everyone.
First, every grown-up should have a checking or savings account and NEVER let it get overdrawn. Keep a manual check register up to date and every week, go on-line to your bank to make sure you haven't missed recording a check or debit card purchase. In fact, keep the debit card in your check book so you can record purchases as they are made. Trust your own bank balance, not the bank's balance - their numbers will not include checks or recent purchases that may still be in ‘float'.
Second, get existing bills paid up to current and keep them current. This takes living within your means - and that takes a lot of discipline. This is critical. A mortgage lender doesn't want to hear excuses for why payments were behind. Current bills must be kept current!
Third, if you do not have a credit card, get one. If you have just come out of a bankruptcy, you may even need to get a 
‘Secured' Credit Card. There are a number of banks that issue them - Capital One, and Orchard Bank to name two. Because they issue cards to folks with less than perfect credit, they usually have higher interest rates.
A ‘secured' card means that you will have to put up your own money against which you will make purchases. So why would you want to do that? Because every month you will now have a report going to the credit bureaus showing your 'new-improved' payment history - and that is what is going to help build up your credit score.
PLASTIC CARDS ARE NOT FREE MONEY!! This bears repeating.... PLASTIC CARDS ARE NOT FREE MONEY!! Use your credit cards minimally (maybe just for gas purchases) and pay them out IN FULL every month so you avoid those outrageous high interest charges (as high as 30%). Each month pay on-line by bank transfer, or mail early if using checks. See to it your payment arrives at least a day or two before the due date... you don't want to chance incurring a late fee.
Just a note: A $39 late fee is tantamount to pulling two $20 bills out of your wallet and lighting a match to them. And for what? For being a day or two late with your payment? But those are the rules you agree to when you get a credit card. So pay attention to the dates, and be careful!!
In short, repairing your credit is possible and can be done in a relatively short time... maybe up to a year. But it takes total dedication and 'tunnel vision' when it comes to managing your finances. It will definitely mean changing your buying habits from "I want..." to "I need..." BIG, big difference. HUGE difference!!
And while this may be a somewhat painful process, especially at first, it may help to know that you are not alone. For example, some people work strictly on commission. They know ahead of time that during certain months, sales slow down and money gets tight. In times like that, these folks need to cut back on non-essentials. Tough times should not be an excuse to run up the credit cards!
And finally, months prior to buying a home, do not take on any new debts or make a major purchase (like a car)... every credit inquiry shows up on your credit report and will push your score down. And any major purchase affects your debt to income ratio. (That's another topic.) Remember - you're on a quest to repair your credit so you can buy a home.
So make a plan for yourself. Stick to it. And hopefully by this time next year, you and your family will be celebrating the holidays in your very own home!!
If I can be of help, call me at 504-451-8343
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