Building credit to get into real estate

Washington, DC · Member since 2016 · 3 posts · 0 votes

looking for the most effective way to build my credit to get a good interest rate on a fha loan. My credit is shot right now but i am in the process of rebuilding. Any and all advice is greatly appreciated. I would love to hear success stories from previous investors who started from the bottom and grinded their way up. Thank you

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Bob Okenwa

Real Estate Agent/Investor · Peoria, AZ · Member since 2016 · 2k+ posts · 2k+ votes

@Jerome Smith

I was in a similar boat about 3 years ago and spent a few months educating myself on credit laws and how to correct mistakes and negative marks. The best thing I can suggest is going to a dedicated credit forum to do so. I went to MyFico credit rebuilding forums and received a ton of help. Give it a shot. http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/bd-p/rebuildingcredit

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Jimmy MurrayBusiness Member
Investor · Warwick, RI · Member since 2013 · 220 posts · 119 votes
8y
@Jerome Smith First place I would check out is Credit Karma. They will provide actionable advice to correct the deficiencies. I would start by making sure that you don't close any accounts and just continue to make on time payments. From there make sure that you are paying down your balances on any credit cards and your score should begin to rise.
Hope this is helpful!
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Bob Okenwa
Real Estate Agent/Investor · Peoria, AZ · Member since 2016 · 2k+ posts · 2k+ votes
8y
@Jerome Smith
I was in a similar boat about 3 years ago and spent a few months educating myself on credit laws and how to correct mistakes and negative marks. The best thing I can suggest is going to a dedicated credit forum to do so. I went to MyFico credit rebuilding forums and received a ton of help. Give it a shot. http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/bd-p/rebuildingcredit
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Gus Ross
Investor · Delray Beach, FL · Member since 2017 · 48 posts · 41 votes
8y
I just wrote a blog article about something similar to this and coming back from the bottom. I didn't mention my credit score was in the 500's. Credit repair companies can probably offer you the best advice but I took the route of individually contacting the creditors and negotiating a payoff. Then one by one I paid them off and my score shot up immediately. If you isolate them and approach them you can get yourself a significant credit boost.
Best of luck.
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Drake Espenlaub
Investor · Evansville, IN · Member since 2017 · 41 posts · 21 votes
8y
I have a blog post about this, and purchasing a homepath property. I would plan for it to take you 6 months to a year for every 10k in debt. Unless you have a job that is paying more than 60k a year and low living expenses. You have to find you competitive advantage, grind and make money however you can.
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Ben Riechmann
Investor · Cleveland Heights, OH · Member since 2017 · 128 posts · 73 votes
5y
As you want to get debts off your credit report as fast as you can, attack the smaller ones first and then move your way up to the bigger ones. Things in debt collection: Make sure they are accurate and real, as I have helped people that sometimes did not owe the debt. If owed, debt collectors bought your debt for less then you owe, so that gives you room to negotiate to pay less as long as you set up a consistent pay schedule. I would go into it more but credit karma and need wallet are helpful. Don't go full cash everything unless you are really bad with credit cards as you will need a paper trail to build back up that you are a worthy credit gamble for banks. Some of my renters that listened to me on this, now bought the places they were renting from and some have rentals too. YOU CAN DO THIS!
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