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Bad Debt.
15 years ago
So I've been talking a lot about buying a house and everything, thinking that since I qualify for a VA loan that I'll be able to get one. Well, wouldn't you know it, all those credit cards that I got when I was in the Army have come back to bite me in the ass. 4 bad debt/collection accounts (because I never paid them when I got out and was on unemployment), bringing me down to a dismal 513 FICO score.
No one'll touch me. I'm getting my VA disability here soon, and it looks like I'll be using it to pay off ~$6500 in bad debts. With any luck, this will bring me up closer to a 600 FICO and I can fight to get a loan. My BIGGEST fear is that I'll pay off these debts and my FICO won't change, or won't change enough, and I'll be out $6k. I really don't want to give these fuckers my money, since 70-80% of what I owe them is fucking interest anyways. I only need the credit for the house, otherwise I've got my financial life in line now. Kinda pissed about all this. But I want that fucking house.
Thoughts, FA?
No one'll touch me. I'm getting my VA disability here soon, and it looks like I'll be using it to pay off ~$6500 in bad debts. With any luck, this will bring me up closer to a 600 FICO and I can fight to get a loan. My BIGGEST fear is that I'll pay off these debts and my FICO won't change, or won't change enough, and I'll be out $6k. I really don't want to give these fuckers my money, since 70-80% of what I owe them is fucking interest anyways. I only need the credit for the house, otherwise I've got my financial life in line now. Kinda pissed about all this. But I want that fucking house.
Thoughts, FA?
~R
He had a lot of credit issues, and it took him about 10 years to get his credit back from crap to good. D8 So...good luck. x_x I hope it works out ok.
However, even if you paid the full ~6500, including all the interest, it's IMMEDIATE impact will be fairly small. You're going to HAVE to get either a secured card, or even an unsecured one at crappy rate (which would then buy, oh, 10$ in gas once a month and be paid off IN FULL... and NEVER USED OTHERWISE.
Every month that that sort of good record is reported is a month of improvement. There is no quick way out of the hole, no ladder. You're going to half to walk up all the switchbacks, dragging your history until it drops off the far end of the 7-year record. *shrug*
It's not easy. Very little worth doing is.