BAD credit ? - Posted by becca75

Posted by avis robbins on January 09, 2006 at 20:30:29:

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BAD credit ? - Posted by becca75

Posted by becca75 on March 14, 2005 at 07:44:25:

I recently bought Carleton Sheets’ program and am studying it like crazy. I’m getting a pretty good grasp of it, but still have a lot more learning to do before I can start. My husband and I don’t have that great of credit (not really much credit card debt-under 1000-but we do have a vehicle repo) My question is, how can real estate investing be done at first with bad credit?
We plan on fixing our credit by paying everything off (including the repo) right away when we make some money from investing. We don’t own any property or have any cash to invest either. So, how and where would someone be able to get financing to start? Am I being unrealistic, and should I not even think that we can do this at our current financial state? PLease give me some advice. Thank You!

Re: BAD credit ? - Posted by Killer Joe

Posted by Killer Joe on March 14, 2005 at 11:45:28:


Your credit is influenced by many factors, and TIME is one of the most important. For instance your FICO score takes into account the average length of time all your accounts have been established. So if you had two credit cards for two years they would avg 2 yrs. If you got a third card your avg would drop to 1.5 yrs.

Additionally, you are rated on the types of accounts you have. You want your report to reflect a good balance so you want to have Visa/MC, Store Accts like Sears/Pennys, Savings/Checking, Auto Loan, and the BIG one, A Mortgage. ALL NEED TO BE CURRENT!

Here is a great way to establish yourself. Go to a bank and open up a secured credit line Visa/MC by giving the bank $300 to $500 to start. If you can do this at two banks, do it. Next open an account at a store you shop at regularly ie Sears/Federated etc.

Now use these accounts instead of paying cash, and pay the cards off when the bill comes. Your interest charges will be minimal, and you will be establishing a pattern of trustworthyness. Try to open these accounts simaltaneously or within a 3 month period so your ‘time avg’ starts to build.

If you’ve opened up a Visa account for $500, for example, and you have a big purchase like $450 that you put on the card and pay off when the bill comes your credit report will reflect that HIGH AMOUNT. You want that. It will help increase your score. Over time the banks will increase your limit if you show you are trustworthy.

Try to pay any accounts that are currently behind in full. You borrowed the money, it’s your obligation to pay it, and you want to avoid any CHARGE OFFs. That’s the term on you’re report that says your a mooch. It’s not worth burning a bridge for the sake of a few hundred dollars and get a 7 year tatoo on your credit report.

Having good credit opens doors of opportunity that can’t be opened by those with bad credit. Learn to use credit wisely and it will be one of your best friends.

All the best.

Re: BAD credit ? - Posted by michaela-ATL

Posted by michaela-ATL on March 14, 2005 at 09:40:35:

Keep this in mind. Credit is very much influenced by the age of the last activity. If you had your car repo 2 years ago, your credit is better, than if you’ve had it 2 months ago. Unfortunately, paying a debt off does not improve your credit, in fact, it will hurt you. The only thing, that will change is the last activity - from 2 years ago to ‘now’, which means, the computer program will read your delinquency as more recent than it was before, which will lower your score. Crazy as that sounds.

When you’re planning to pay things off, contact your creditors and tell them, that you have come across some funds, but that you only have enough to pay some of your creditors off. You will pay off those, that will get fastest back to you, IN WRITING, that they will change your negative credit entry to a postive one upon receipt of the funds. They will tell you, that they aren’t allowed to do it. Tell them to discuss this with a supervisor and in the meantime you will deal with those, that are willing to do it. They’ll change their minds very quickly, if it means ‘getting paid’.


Re: BAD credit ? - Posted by Randy (SD)

Posted by Randy (SD) on March 14, 2005 at 08:35:19:

Becca, there are many ways to get started in REI with little or no credit and yes even bad credit. You can learn how to control properties by buying “subject to” (takeover subject to existing financing). Buy on a lease option or with seller financing, these techniques will work in any market! Sometimes they are a lot harder to accomplish in a hot market like California or Las Vegas, but it’s like mining for diamonds - miners must move tons of earth to find a single 1ct Diamond.

The Carlton sheets program is a good starting point, have you read the information available on this site? Start with the “how-to articles”, “money ideas” and other links under the blue banner on the left side of this page. Learn how to search the archives, I guarantee you every possible question you could think of has been asked and answered many times on this site. The ONLY requirement you need is desire! Everything else knowledge, what forms to use, what to say and do and even what not to do is available right here… for free.

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Re: In Chex Systems? New Checking Today for CA! - Posted by Credit Servicer

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