No kids, poor credit and income has increased. Where to start?

3 Replies

My wife and I just got through some rocky terrain in our finances. We pulled through and are in a much better position than when we were before. Since our credit is in the trash, I'm looking to steer clear of bank loans until I get it patched up. What are some smaller investments I can make right now with the cash that I will be saving bank?

Congrats on surviving the terrain, happens to the best of us.  Need to know more about your situation like RE experience, how much you have to work with and what your goals are.  But from what I do know, you may want to look for a project where you can buy something cheap fix it up and flip it.  Do that 3-4 times and now you are working with real money.  I know that is easier said than done, but no one says it's easy.  At the same time, work on your credit.  You WILL need that in the future.

@Jake Serrano You may need to provide more transparency in this thread in order to get more accurate advice. Such as, what is the position you are in specifically? Do you have stable income? An emergency fund? And more importantly...what are your goals?

Second of all, if your credit is truly that bad, you may want to play the waiting game for a bit and focus on raising it. If you are saving money and have stable income, you might want to increase your risk aversion and go after those low-yield returns such as high-yield savings accounts, money markets, CDs, etc. But make sure you pay down debts and have an emergency fund first.

Without knowing your credit score, you might know that a lot of mortgage programs out there work with low credit scores. I think you need a 580 for a FHA with 3.5% down. And if I'm not mistaken, a lender has the ability (but doesn't necessarily have to) to lend on an even lower credit score with the trade-off being a potentially higher down payment than 3.5%.

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