Credit repair with unsecured loan and cosigner, and the buyer market : Bad Credit Advisor

Credit repair with unsecured loan and cosigner, and the buyer market

The following is the recent exchange with the person looking for credit repair. He wants to fix bad credit to be able to buy a house and do it ASAP, in a fear of missing buyer's market. It illustrates the common situation today and is similar to many questions we receive on credit repair.

Q: I want to buy a house as soon as possible but have bad credit, how can I fixed it quick?
A: Please provide some details on the bad credit situation - what are the credit scores, why it is bad - collections, late payments, charge-offs, etc.

Q: The credit scores are in 500s, I have few collections and bad accounts. I want to pay them off. I need a personal loan, may be $14,000.
A: We don't give loans, just an advise. A personal unsecured loan will cost you probably 25% in interest rates, if you can get one with such low credit score. Your credit, I can almost guarantee will need much repair than now, in my opinion.

Q: What about cosigner, I want to get it over with, I feel like buyer's market is coming to the end.
A: Cosigner will certainly help, but even if he or she has high credit scores, an unsecured loan will be costly, likely 12 - 15%. As far as real estate market, it is not going to end anytime soon. I would suggest to get a second job to save some cash for a down payment, which I assume you don't have, and pay off collections, etc. In a year or so you can fix your credit to a point you can easily get a mortgage.

Mon Dec 3, 2007 03:12PM by Tony | More in Credit Repair | Comments (0)

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