Low credit score dashes the hopes of many people that are looking to buy a house. While few people have a perfect 850 credit score, if you fall below 650 you might have a lot of problems trying to buy a house.
The good news is there are many ways to repair your credit. All hope is not lost. If this is the situation you are in, it’s time to get determined to make a change.
Here’s some inspiration to get you started.
1. Pay down your debt in unexpected ways
You may not have the extra income in your regular paycheck to start paying down on your debt, but if you get creative, you may find multiple ways that you can make a difference. One house hunter was able to raise his credit score up by 60 points within one month by simply selling off a small side business he owned and using the funds to pay down $9,000 of debt.
Every time you pay off credit card debt and the totals hit the credit bureaus, you will see positive changes. This typically happens once every month. A little hard work for a few months can make a big difference for your credit score.
2. Work with your spouse
If your credit score is too low to be approved, but your spouse has a good credit score, you can work together to build your score up.
For example, open a joint credit card or obtain a joint loan together. Begin to make regular payments to show that you are responsible with your finances. Your spouse’s good credit score will be able to help you get approved for the loan that you otherwise would be turned down for.
After doing this for months, you will find that the regular payments are building your credit score up.
One couple that put this idea into practice was able to help the husband increase his credit score by almost 200 points in as little as two years.
3. Do the hard work
If you don’t have a spouse that can help you out or any way to make additional funds, it’s time to roll up your sleeves. Look for ways to cut your monthly spending. Stop eating out and going shopping for items that are not necessities. Live under your means so you can pay down on debt, pay bills on time, and improve your credit score.
The process isn’t easy, but it absolutely works. Little by little you will see your score improve. One couple that worked this plan together were able to raise their score by 300 points over a three year period.
Don’t let your low credit be the end of your dream of owning a home. You are in full control of the situation and able to make the necessary changes. Begin by paying all bills on time. Pay down on your debt as quickly as you can, and get your spending in check. Don’t let your short-term comfort get in the way of your long-term goals.