I have a very poor credit rating. How do I change this?

I am 37 years old, African-American, gainfully employed in D.C., have lived, worked and studied abroad. I have a Bachelor's in French. I also have 60,000 dollars worth of student loans to pay back, a bad credit card history (years of just being irresponsible, but that's now over) I would say that I have about 4000 dollars to pay back credit card wise. I have now returned to the United States after having lived in Paris for 4 years and know now that CREDIT DOES MATTER. My goals are to own a loft apartment within the next 4 to 5 years.


I have already sent away for my free credit report. I have 500.00 in savings and pay 1000.00 dollars in rent. My paycheck after taxes gives me 1,034.00 every two weeks. How do I change my situation to achieve my goal? Are there any programs for first home buyers that I could take advantage of? I'm fabulous and broke. I am going to change this. I'm too smart to be financially inept. I need help, please. Thank you.

I have a very poor credit rating. How do I change this?
Well there are a few means to do this. You can get a fake social security number and....(oh yeah thats illegal). Basically you have to start today by saying that you will pay bills on time. Then you take any extra money you can salvage and pay off the negative debts that you owe. You can do this by negotiating a settlement and making the terms being that their entry will be erased from your credit once you satisfy that debt. Start with the smaller ones and work your way to the larger ones. To obtain positive credit look into getting a secured loan or something like that. I too am an African American and I have just purchased my first home with hard work and changing my mindset. Email me for some more info as i can't type everything in here. I just got finished writting a step by step credit repair manual. I used these techniques and my score improved 200 points in 2 years. It takes time but sometimes you can have drastic increases in 6 to 7 months.
Reply:1. Get with a mortgage broker in the D.C. area - they will help you to identify programs that help 1st time homebuyers, and generally are experienced at pointing you toward companies that can help you to clean up your credit. I had good success with lwww.lexingtonlaw.com , as have some friends of mine. I think I paid $35/mo. Some credit councelors and other will tell you that you can't "repair" your credit, but you can. They'll tell you that if one of these companies gets something off your report that the creditor will put it back on - not true! I'm not sure why there is this "conspiracy" to get people not to do this.





2. Be sure you can afford what you buy next, and then buy it. Don't wait for "perfect" credit. It may cost you more, but the appreciation you'll recieve on a good r/e investment will more than cover that.
Reply:As far as consolidating your debts, I doubt that you will find a better interest rate for your student loans than what you have right now.





I would suggest checking out the site that I have listed. It has a student loan forum, that you may find informative. You may find information on how to handle repaying those loans.





There is also a credit forum that may aid you in learning how to deal with the rest of your bad credit.





Also, there is a mortgage forum with plenty of info on how others have fared in their home purchasing.





Most of the people on that board have been, or are in, the same spot you are in.





It is a "free" self help site, where people learn how to deal with their credit problems.
Reply:There are companies that will consolidate your debt, and you only make one monthly payment. I can't think of any right now but if you look in the yellow pages under "debt consolidation" or something similar, I'm sure you will find one. Also try the 800 directory: 1-800-555-1212. It's free.
Reply:consoldiate your loans into 1 loan and also do the same for your credit card debt. By doing this you are saving money on interest.





Buying a house right now is not good for you, bring down your debt.
Reply:You are beginning to tick me off.





You sound like most black folks I meet in D.C.





Employed and broke and too proud to find the EXACT same job in the south to make ends meet and reach some serious goals.





The cost of living in D.C. is too damn high and the cost of homes are astronomical there. Gentrification has made homes too expensive for the working middle class.





Nothing wrong with urban living, but bruh, D.C. houses ain't no joke.





Clean up your credit first with 24 months of solid paying history.





And bruh, I mean solid -- no "see what had happened stories to your creditors"





Come to North Carolina, South Carolina, Georgia. You can get condo's (with lofts) hella cheap and with rehabilitated credit after 24 months -- you will be good to go.





You can be in a D.C. hot spot, but being broke-to-broke and not being able to qualify for a home loan because your salary ain't enough for the related mortgage is demoralizing.





Come to the South and take care of bidna!
Reply:You sound just like me.





Unfortunately, the only true way to improve your credit score is by keeping up with your payments regularly. That'll gradually, but surely raise your credit score. Also, buying a home or condo in itself can help your score. Buying large properties can improve your score.





But there are no quick ways to improve your credit scores. If there were, the credit bureaus would have figured it out by now, and would have corrected the problem.





Good Luck!
Reply:Congratulations on becoming committed to financial freedom. With $1000 in rent and $2,068 after taxes each month, you're a bit over-extended. Most experts recommend that if you're renting, you shouldn't spend more than 1/3 of your net monthly income on housing.





There is a guy whose methods are very financially sound, and he helps lots of people get out of debt. He has a radio show and a web site. He helps people get interest to work for them, not against them. His name's Dave Ramsey. I invite you to check out his web site. Stumbling across his material several years ago changed my financial life.
Reply:Just sit down with all of your bills.





Start with looking at the ones you know you have to pay to live.





After you pay phone, electric , gas and food.





Ok get your credit card bills out and look at all of the minimun balence. If you can pay $ 20 more than they ask for even your student loans then in a few month you will see your credit score will change and you will get your bills paid faster also do not use all of your credit cards.





Pick a card you can pay off in a year and don't use it but once or twice a year for something like $10 and keep paying the increase amont.





You will find your bills will be better in a year.





David
Reply:Pay every thing current, keep up your payments for 6 months. and then apply for a mortgage.
Reply:#1) Pull all your reports. Not online, request actual physical copies. They usually contain more than what an online report does. This will give you a start on where you need to go with your reports. Also, keep them. Never toss them. They are proof later on if you need them to refer to if you ever get into a legal situation regarding your credit (lawsuit etc). You can get your first set free on an annual basis at annualcreditreport.com.





#2) Dispute. Dispute anything that is not correct including, balance amounts, lates, etc. If you have only one or two lates, I would call your creditor and see if you can get them removed via goodwill gesture, or send a goodwill letter. You can find some great letters on some of the credit boards like creditnet.com and creditboards.com.





#3.) Collections? If you have any collections on your account or anything that should not be there, send a DV (debt validation) to the creditor asking to prove the debt. If they cannot, they have to remove the debt off of your report by law.





#4.) You have rights - check out http://www.ftc.gov/os/statutes/031224fcr... for more info.





#5.) check out some of the posts on creditnet.com and creditboards.com for assistance.





#6.) If you have no credit, or want a temporary boost - have a family member or really (really, really, really) close friend add you in as an authorized user on their credit cards. Make sure the balances are not high, otherwise this could hurt you more. The higher the available credit, the more your utilization will go down on your report - therefore bumping your score.





#7.) Avoid unnecessary inquiries. Hard pulls can hurt you, so avoid applying for new credit cards unless necessary.





This of course is a shortened version of things you can try. Research info on those links I provided you. You can increase your score spending just a short amount of time per week, sending letters to creditors etc. I increased my score over 100 points in less than 6 months. Depending on your situation, this could take shorter or longer time, but at least you have somewhere to start. Good luck!
Reply:You are on the right track. You will have to show a pattern of making regular deposits into a saving account. You need to increase your income, consider a second job. Finally contact the a mortgage broker who specializes in FHA loans. You can put down as little as 3 percent.