I had bad credit...so now I have no credit cards or debt....

Real Estate Agent with EXP Realty 414-525-0563 57026-90 Broker

. Once again this month, our monthly purple envelopes were hard at work with a referral from a past client.  He had a co-worker that wanted to escape suburbia and move out to an area that was a "little bit country." He knew that we had orchestrated the sale of his house For saleand the purchase of a new one without a problem and was confident we ccould do this for his referred Seller/Buyer.

   We began "at the beginning" and had the Seller/Buyer talk with one of our preferred lenders for a prequalification. We also knew a range of what he could expect from the sale of his current home.no credit cards

     OOOOPS....the word came back from the lender...the wanna be Seller Buyer had fallen off the credit score chart...nothing was in his name ...he had cancelled all his charge cards...and the current home was financed in his fiance's name.  Oh Oh....we talked with him and learned years before he had gotten into "credit trouble"....so his solution was to cancel all credit cards and pay cash for everything thinking that would mean he had "clean credit."

    We well understand having worked with many divorced spouses that needed to establish their own credit that this would take some time and effort on the Seller/Buyer's part to establish a healthy credit score. 

He would have to be patient and follow oir instruction and we promisewd that he would gain a good score and be able to buy another house.

hesitant   He was hesitant to begin the process of applying for credit with the prospect of being turned down looming in his head.  We assured him that the contacts we gave him were very familiar with people starting over and while he may have a small credit limit at the beginning...faithfully paying the balance in a timely manner would reward him with a higher limit later...AND would establish and increase his credit score as well.

    Sometimes you have to wait a little longer for a "happily ever after"...but when it comes...it will ben the result of self discipline and hard work...sooo rewarding !

     If you or anyone you know is looking to sell or buy a home in the southeastern Wisconsin counties of Kenosha, Racine, Walworth, Milwaukee, Waukesha, Ozaukee, Washington or Jefferson....call the Hansons ..414 525 0563...we are honored to be of service for all things real estate.


Posted by

Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS

home worth iconemail iconhome searchLinked In  facebook


This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Mortgage / Finance
no credit
reestablishing credit

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Sally. What sounds and feels logical is sometimes not! Enjoy your day.

Jun 13, 2018 04:14 AM #6
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

Good morning, Sally K. & David L. Hanson (Sally)... that referred potential buyer was fortunate to have you there give guidance.... he'll be on his feet and back in the game again if he follows what you say....

Jun 13, 2018 04:30 AM #7
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good morning Sally K. & David L. Hanson,

This future seller/buyer is lucky to have linked up with you so you could get him pointed in the right direction. Sound practical advice that is followed will ensure a higher credit score and he can make a move...thanks to your guidance!

Jun 13, 2018 05:12 AM #8
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Good morning Sally and David.  He found the right realtors to work with.  I hope he will follow your advice.

Jun 13, 2018 05:14 AM #9
Amanda S. Davidson
Amanda Davidson Real Estate Group Brokered By eXp Realty - Alexandria, VA
Alexandria Virginia Homes For Sale

Sally and David, this future seller/buyer is lucky he was referred to you. If he follows your guidance he will be back in the good credit saddle again soon. Credit seems to be so misunderstood, no credit score is no good!

Jun 13, 2018 05:46 AM #10
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Sally and David. Patience is not my strong-suit but I get this.

Jun 13, 2018 06:40 AM #11
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

Paying cash for everything allows you to spend less, as you can only spend what you have, but it certainly won't allow for you to get credit from others, when you need it.

Jun 13, 2018 08:01 AM #12
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning Sally and David - I am sure the your client appreciated the coaching.  Some people over react.

Jun 13, 2018 08:02 AM #13
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello SallyandDavid, I had a client that I sold 3 homes to overthe years but when it came to number 4 we had a problem.  his mom pass away and heto all the money that he got from her estate and paird off all his credit card and his mortgage, no debt.  Well we got him a house but his wife had one Kohls card and that got him the home hat wanted.


Jun 13, 2018 08:29 AM #14
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Sally and David several people make that mistake.  Trying to gain credit again can sometimes be tougher than fixing bad credit.

Jun 13, 2018 10:05 AM #15
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This is a good story to share. Many consumers do not understand how to build a good credit record.

Jun 13, 2018 11:03 AM #16
Paul S. Henderson, REALTOR®, CRS
RE/MAX Northwest. - Tacoma, WA
Tacoma Washington Agent/Broker & Market Authority!

I just love your purple envelope stories and the results you blog about Sally and David...

Jun 13, 2018 02:07 PM #17
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Sally, it is tough to start over, especially after a divorce.  Just had a sale with a couple that just were finalized.  Tough to start over.

Jun 13, 2018 06:46 PM #18
Rebecca Gaujot, Realtor®
Vision Quest Realty - Lewisburg, WV
Lewisburg WV, the go to agent for all real estate

Sally, great advice and I am sure the seller/buyer will be very grateful when he is ready to buy.

Jun 13, 2018 07:08 PM #19
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

JHello Sally and David - this post once again underscores how you can assist buyers/ sellers who are knowledgeable and who need to be informed/ guided. I like how your purple envelopes work for you.

Jun 14, 2018 05:52 AM #20
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Hi Sally and David- Buyers as well as sellers have no idea what they're missing out on if they try to do it on their own or go with a less knowledgeable agent. You are caring as well as educated on your local real estate. 

Jun 14, 2018 04:55 PM #21
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Sally & David, I always tell my clients before you do anything check with my lender what you should and should not do....Endre

Jun 14, 2018 10:49 PM #22
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Good work on your part, Sally and David. Hope things work out.

I suspect there are many who do not understand how credit works and the things you should, and should not, do. Seems it's much harder to improve your credit than to ruin it.


Jun 15, 2018 09:59 AM #23
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

Hi Sally,
This story reminds me of the time I inherited a listing from an agent quitting the business.  The family wanted to sell their current home and get something in a better location.  In my introductory interview, I discovered they have horrible credit and if they sold I was pretty sure they wouldn't be able to buy and would even have a hard time finding a rental.  Selling their home could have led them down a dark path.  I asked them to sit down with a lender and confirm my suspicions... and they did.  We took the home off the market.  As far as I know, they are still in the home. 

Jun 16, 2018 08:00 AM #24
Jane Chaulklin-Schott
TEAMCONNECT REALTY - (407) 394-9766 - Orlando, FL
TeamConnect Luxury Homes - Orlando, Florida, 32836

There are definitely steps one can take to rebuild and regain ones credit/credit score.  It may take a little time but in the end, very rewarding. As Realtors, we perhaps have seen this played and replayed many times.We are in a position to help...

Jun 17, 2018 09:18 AM #25
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?


Sally K. & David L. Hanson

WI Realtors - Luxury - Divorce
For All Things Wisconsin Real Estate...Call the Hansons
Spam prevention