I have bad credit from 10 years ago...can I fix and buy a home?

I'm 28 years old and got off to a bad start. As soon as I turned 18, I went credit card crazy and have accumulated $10,000 + in credit card debt. I didn't realize how bad it was until I was about 21 when I started a family and couldn't afford those minimum payments of $100-300 a month, per card......so I stopped because I couldn't afford it anymore.



My family is growing (4 kids) and over the years we've lived with family then to an apartment but obviously we need a home. We've tried to purchase a home, only to be denied several times, in the making..... My credit has hurt the process a lot but I can't seem to figure out what the best way to go about it..... Should I pay an enormous amount of money to pay it off? Or should I just leave it alone because the debt is over 8-9 years old? And how can I establish new credit when no one will approve me??? On the income side, my husband and I only make about $34K/yr and his credit is as equal as mine.



Any helpful advise is appreciateI have bad credit from 10 years ago...can I fix and buy a home?
Hello There!



I recently went through the whole credit repair process myself, so I have a lot of advice for you.



The first thing you should do is make sure you have the most-up-to-date version of all 3 of your credit reports (one from experian, equifax, and transunion.) You can go on www.annualcreditreport.com and obtain a free copy of each once every 12 months.



Once you receive your report, you will want to go over it carefully and see if there are any errors. If there are errors, you will want to take care of those first by writing to each individual creditor and disputing the item. You can find sample letters online for how to effectively do this. Keep records of everything!!! I have a folder for all my credit reports, correspondence with credit bureaus, creditors and collections agencies.



If you have any collections items that are unpaid, you will want to call the collection agencies and offer to pay the debt in exchange for the item being removed from your credit reports. Unpaid collections items can knock up to 50 points each off your score!!! About 50% of collections agencies will make this agreement- make sure you request a written letter stating that they will be removing the item upon payment and keep it for your records. You will need to pay off collections items first.



If there are accounts with balances that have not gone to collections yet, you can call the creditors and see if they will accept a ';settlement on the account.'; This means that they will accept a percentage of the balance and consider the account paid, in order to save you from having more late payments.



Anything that is over 7 years old can be removed from your credit report. You have to write to the 3 major credit bureas and request these items to be removed.



Anytime you correspond with credit bureaus, keep a copy of the letter that you sent. They have to respond back to you within 30 days and anytime a change is made, they will send you a new credit report, which you should use to replace the old one in your folder.



It takes time and patience, but in the end it is worth it. I was denied for 2 years over and over for a home, but after almost a year of correcting my reports and credit score, I have just been approved for a mortgage at 6.5%, which is the going rate.



If there is anything else I can help you with, let me know. I have had great luck with this! Also, do not pay any credit counseling agency- there is nothing that they can do that you can't do for yourself!!!I have bad credit from 10 years ago...can I fix and buy a home?
You are screwed. I'm pleased to see credit cards work the way I intended. Thumbs up for evil!
Sure I guess.
I don't think there are any negative credit items that are allowed to be on your credit report more than 10 years. Get a copy of your credit reports from



http://www.annualcreditreport.com



for both you and your husband and request that the credit reporting agency DELETE anything that you know is more than SEVEN years old.



I am surprised that information that old is still affecting your credit score.
That stuff isnt suppose to stay on your credit report for more than 7 years. I dont know how its still there. Have you looked at your credit report lately to see what should be on there and what shouldnt. The only suggestion is to pay off the debt or a last resort file for bankruptcy in which case it will be still hard for you to buy a home but at least you wont have to worry about the debt anymore.
you've been branded for life, its gonna take you half your life to just convince them credit companies you're more responsible now, and a lifetime proving you're worth giving a credit.



solution... win big in the lottery, pay them greedy credit card companies and buy your dream house. start being greedy yourself, remember how those bastards treated you. greed begets greed.
First things first, get a copy of your credit report. If you don't want to pay for it, apply for something like a sotre-based credit card (if your credit is as bad as you say, you should get denied) and when they send you your letter of denial, it should have info on receiving a free copy of your credit report, which is required any time you get denied for something.



Next, go through your report, and see what is going to be erased soon (some stuff goes away in 5 to 10 years), and you can ignore that stuff unless you really want to worry about it.



Take everything else and figure up how much money you would need to take care of it. Now, you can do one of three things. One, you can take care of it in a lump sum, if you can find the money for it. Two, you can figure up how much you could pay monthly to try and take care of it all. Three, you can declare bankruptcy. Just keep in mind, that declaring bankruptcy can hurt more than help, in some cases. I would suggest talking to a lawyer if you choose this route.



Good luck!
Yes it is possible to clean your credit up. Pull your report from all 3 credit agencies https://www.annualcreditreport.com/cra/i鈥?/a> go to this website, you are entitle to your credit report once a year, or every time your turned down (never pay for your report). After looking at your reports pay everything that is outstanding it might take a while, but once you get it cleaned up, You will be able to buy a house.
Unpaid debt is going to stay on your credit history forever. Catch-22. Like a venereal disease, you can already see why this is a gift which keeps on giving. The statute of limitations (3 or 6 years depending on the state) says they can not take you to court and sue you to collect, but that does not absolve you from debt, just from them taking a piece of your paycheck through court judgment. There are 2 ways to clear your record of this, pay it off or declare bankruptcy. A bankruptcy will fall off your record in 7 years provided you do not screw it up in the meantime. Your other alternative in buying a house is a huge deposit and down payment, which you lose if you default, which with bad credit history is more likely in their opinion. Once burned, twice shy. There is no such thing as a free lunch. You are now paying the consequence for defaulting on your obligations. In the past, you promised to pay and you didn't, which reflects poorly on your promise to pay in the future. In this, they are not being unreasonable in denying you further credit. Pay it off or go bankrupt, or as a possibility, put down a huge non-refundable down payment. When you find yourself in a hole, the first thing you should do is stop digging.
pay it off! old debt does not go away...it grows. pay it off now so you can have a god future
I would lease with option to buy. Pay your lease payments on time every month, after 1-2 years, apply for the mortgage. Banks are in business to loan money. Thats what they do. They want to loan you money, they just want to make sure you pay it back. With a history of paying your lease on time for the past 1-2 years, any bank will give you the mortgage
your primary focus it seems is on buying a home i've found some resources that shows you ways to buy a home regardless of your credit situation as well as removing items on your credit report through an effective credit dispute process as well as knowing your rights pursuant the fair credit reporting act.



http://bdcd.blogspot.com/



http://timboson.blogspot.com/
Not a credit counselor, but you can start by going to www.AnnualCreditReport.com. I'm 23 and in the process of cleaning up my own credit as well. Not quite as bad as you but the revolving credit cards certainly don't help you.



By law, the 3 reporting agencies (Equifax, TransUnion %26amp; Experian) are required to provide you with a copy of your report once a year. You can run all your reports for free @ that site. The only thing, you don't get your actual score which you really don't need at this point.



You need to go through all the entries on there and first make sure they're correct. Whatever isn't or it's been paid and is still showing...start getting on the phone. Call and it usually takes them a few weeks to update their records and ALWAYS request a confirmation that they are removing the item from your credit.



Keep good notes as you are dealing with Credit Companies. They're all the same...they'll tell you one thing, than you call back and be told the opposite. Write down names %26amp; extension #'s if possible.



Hopefully this helps a little. Good luck w/ everything.
Unfortunately, damaging credit can take place easily and quickly, whereas repairing it can be a more lengthy and challenging process.



My first suggestion would be to utilize your free annual credit reports, and use them to initiate challenges with everything derogatory on each of them. You need to order a separate report from each bureau (TransUnion, Equifax, and Experian) and the ID number will be your gateway to doing the online challenges. In general the bureaus wrap up these investigations in about 30 days or so, and delete everything that has been challenged, unless it has been substantiated by the creditor that reported it.



After that has taken place, you will then most likely have a smaller batch of problems to resolve. Find a good mortgage consultant (like me - but I'm not advertising) who can then work through the process of identifying where you will get the most ';bang for the buck'; in anything you decide to pay off.



Also see if someone with established credit will add you as an ';authorized user'; to their accounts - this should have the effect of raising your score.



As far as applying for new credit, try the gas companies, as they can be lenient on their extension of credit - and also consider a small secured card. Make sure to get one with the least painful fees and one that does not charge a ';monthly participation fee.';



Finally, make sure that your revolving debt (credit cards) accounts are half or less of the approved balances - 33% or less is probably ideal, but use the ';half or less'; as your rule of thumb. So, if your approved limit is 1,000 on a given card, make sure that your balance is less than 500, etc.



The process can take a bit of time, but it is very possible to accomplish the turnaround you seek. I hope things work out for the best!