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How Can I Improve my Credit to secure a loan for a House?

I was the co-applicant on my home with my ex-husband. He left me and the house foreclosed, I could not afford to pay the mortgage. My credit score is 615. I am paying off slowly past debts like hospital bills, etc.

Any financial guru's out their that can help me? I am a single mom with one child.

I was able to get a Capital One Credit card (3 months ago) and actually got the limit raised, I make payments each month, I have cable which I pay a montly bill, Verizon which have never been late.

Answer Question
 
Anonymous

Asked by Anonymous at 10:13 AM on Jun. 12, 2011 in Money & Work

Answers (9)
  • Most likely you will have to wait until that foreclosure comes off your credit report. No matter your score, banks don't tend to give loans when someone has recently defaulted on the exact same type.
    Anonymous

    Answer by Anonymous at 10:16 AM on Jun. 12, 2011

  • lower your debt to income ratio
    tspillane

    Answer by tspillane at 10:29 AM on Jun. 12, 2011

  • The main thing your going to have to do is wait unitl the house is off because any of the banks you go to will tell you no because they see it as a high risk since you have already failed to make payments. You can get a pre-paid credit card. It is slow going but that is one of the best ways to re-generate credit. You put the money on the card and use it for whatever then replace the money. The banks don't see it as such a high risk since you have to put money in before using it.
    Hope this helps. :D
    SCB0109

    Answer by SCB0109 at 12:06 PM on Jun. 12, 2011

  • Ive had the same problem hubby leavign me high and dry,i cant even get a credit card cause soemof these nutts want turn it in that you have paid the bill off ,,and that hurts your credit.
    jbaby7162000

    Answer by jbaby7162000 at 7:45 PM on Jun. 12, 2011

  • all of the above. reduce debt to income ratio. keep paying your cc on time every month. not sure how long a foreclosure stays on your credit report.
    mkdirector2011

    Answer by mkdirector2011 at 7:59 PM on Jun. 12, 2011

  • Make sure he is not attached to your credit cards. Pay everything on time. Never be late. Keep at least one open account, 2 is better and pay faithfully. The reason for more than one is the credit bureaus need something to measure and score. Keep track of everything. By the time the foreclosure is no longer an issue, if you are never late on payments and can save money you will have a great credit history. Now is the time to build back up.
    cafeclubmom

    Answer by cafeclubmom at 8:12 PM on Jun. 12, 2011

  • I think trying to pay off your credit card completely may improve it. One thing I read is not to close your accounts after they are paid off, can't remember why. Just keep doing what you are doing. Many states offer home-building programs for single moms. Good luck.
    oahoah

    Answer by oahoah at 11:48 PM on Jun. 12, 2011

  • Your electric bill is also important, if paid on time it can reflect good credit.
    1northwestmom

    Answer by 1northwestmom at 12:46 AM on Jun. 13, 2011

  • Rent to own is good option, check out Homepath.com (my mom is a mortgage brooker, she has recommended this site to me).
    1northwestmom

    Answer by 1northwestmom at 12:48 AM on Jun. 13, 2011

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