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Can You Buy a House with Bad Credit on Your Credit Report

So you’re looking to move out of the apartment and into a house…but then you realize…

“Oh shoot, I’ve got bad credit on my credit report?”

So now you are asking yourself:

Can I buy a house with a bad credit on my credit report?

NO! You most definitely cannot buy a home with bad credit against you specifically no banker or mortgage lender will approve a home loan if you have a judgment on your credit report. The reason is that the judgment could be attached to the property once you move in.

Your only option is to remove the credit report judgment before applying for a mortgage.

Two Ways to Remove a Judgment and Bad Credit:

1. You can dispute your credit reports – Experian, Equifax, and Transunion. You have to do this on your own. If a credit report dispute does not work, then you’ll need to look to hire a credit attorney.

2. If you hire a credit attorney, consider the Lexington credit repair program. They have a few strategies and a special loophole they use to remove judgments, liens, and public records.

The loophole involves debt validation and special dispute methods. They erased a large judgment I had for a credit card debt ($5,800+) – even after I had exhausted all of the typical do-it-yourself methods.

Once you do remove the judgment, you’ll be anxious to apply for the mortgage immediately. However, it’s very important that you shop around. There are many unscrupulous lenders out there waiting to prey on consumers with a low or average credit score.

Better yet, contact a mortgage broker you trust. We used a broker and saved money even after paying him the modest brokerage fee. Remember, even a half a point on a 30 year mortgage is equal to thousands of dollars.

* We were so impressed with Lexington Law that we decided to become a sponsor and put up this website.

Finally, I know that it’s embarrassing to talk about having bad credit and judgments against you, but it’s your reality right now. You can work through this. If you want to tell your story to a pro who’s already helped others remove judgments and other bad credit marks, dial: 1-800-298-4297 – instant helpline for removing credit report judgments and bad credit.

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What is a Good Credit Score

Q. What is a Good Credit Score?

A. First, let’s discover the full history of your credit score. One of the first credit organizations to utilize credit score ratings developed by Earl Issac and Bill Fair were Montgomery Wards and Carte Blanche.  The system they developed used math formulas to rate a person’s ability to pay back credit advanced to them against what they earned. This formula became known as a FICO score and is used by most lenders and appears on all credit agencies reports.

There are five parts to the calculation and each item is given a different classification.  35% of your credit rating score is determined by how you pay your bills.  If you have a good score but miss a payment, it will drop your rating considerably.  30% Is based upon how much you owe.  If you have a lot of balances that are almost at the limit, this will severely limit how much you need to afford your lifestyle and will lower your credit score.  If you are living from paycheck to paycheck, you are walking a serious debt line.

Also taken into consideration is how long you have been receiving credit (15%), how many times you have applied for credit elsewhere, incurring more debt (10%) and the kind of credit types you have, i.e., car loan, mortgage, credit cards (10%).

According to the myFICO.com web site, the median score in the United States is 723. About one third of Americans have scores between 550 and 700 while 7% have scores lower than that.

Therefore, if your FICO score is under 700, you are in the bottom 7% of people!

This is a determining factor in how much you can afford to pay for something.  In applying for a mortgage, a person with a FICO score of 760 or more will pay $1,000 less in interest per year than someone with a bad credit score, all because they have been determined to be able to afford it.

* We were so impressed with Lexington Law that we decided to become a sponsor and put up this website.

If your score is under 700, then you will need to improve it before applying for a mortgage. My score was in the mid to upper 500′s before I enrolled in Lexington Law. They got my score up to 745. Get a FREE credit consultation with credit repair experts by calling 1-800-298-4297

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What Is The Definition of a Charge-Off?

If you found charge offs on your credit report, you may be asking yourself: What is the Definition of a Charge Off?

Rather than give you a raw definition of a charge off, consider this background: Every bank or other lending institution runs accounting reports at the end of every month to determine their profits and losses.   They track what sells and what doesn’t, what they make money on, and what choices have caused then to lose money.

When you are over 180 days (six months) over due in payment of a debt, such as a credit card, a car payment or a mortgage, you are determined to be in default of that loan, and are most likely not going to pay it.  The company will then declare your debt as a “charge off,” which alerts the credit reporting agencies that you have defaulted.   They are writing the debt off as “uncollectable” and will list you as such when it is time for the company file their federal income tax.

Even though it may be of no fault of your own, such as a job loss, illness, etc., you are still responsible for a debt you’ve incurred.  The company declaring a “charge-off” status does not release you from the debt, however.

You are still responsible for a charged off debt.

It may be in your best interest to try to work out a repayment plan, even if the debt has now gone to a collection agency for follow up.

A “charge-off” will reflect poorly on your credit report, showing as a negative report and lowering your credit score.  Next to a bankruptcy or judgment, it is the worst items you can have on your credit report.

It will remain on there for seven years and the only way to remove it from your credit report is to negotiate a payment plan with the creditor, wait it out, file credit bureau and/or creditor disputes.

When we sought approval from the bank for a home loan, I had about 6 charge offs on my credit report – from credit cards, utility bills, cell phone, and various other debts.

* We were so impressed with Lexington Law that we decided to become a sponsor and put up this website.

Once we hired lexington credit repair, the first items they deleted were the charge offs. You can read our entire story at www.creditforcouples.com. Get a FREE credit consultation with credit repair experts by calling 1-800-298-4297

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