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Question for the Money Doctors

Question submitted on Jul 25, 2011.

Question

I have the worst of the worst credit due to when I was 20 years old I took out so many credit cards and a car. Now I am only 23 I have so much on my credit: a repossessed car, many credit cards I did not pay, & bad school loans. I want to fix my credit so I can buy a house. Is my problem fixable if so what can I do? Will they're be a chance that I can buy a home?

-Out of control debt

Answer

Thanks for the question.  You should be able to repair your credit rating to a point where you can buy a house at some point if you are responsible with your money going forward.  There will be several black marks on your credit report which will bring down your score for a while, so I doubt you will be able to qualify for a house soon.  Most banks and mortgage companies are requiring at least a 640 credit score for a home purchase now.  One alternative is to check out a credit repair service in your area.  Sometimes these services are able to help you repair your credit score much quicker than you can on your own.  Find a reputable agency and get references; there are plenty of scams out there that would love to take your money.  I hope this helps. 


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