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Posted in Paying Your Bills
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klee22500

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Building Back Credit
Hello Community of CK,

I recently came into a large sum of money, but I have horrible...I mean HORRIBLE credit. I want to pay off all my debt before I do anything, but I was wondering what I should do after to start rebuilding my credit. My plan so far is to pay off debt, buy a home, but after that I have no idea how to begin to get my score back up. One of my friends said I shouldn't buy my house outright, but rather pay off most of the mortgage and have a small monthly payment to start building credit that way. I am hesitant to that as I have been homeless for the last two years and long for the security of owning my home. Another friend said I should get a secured credit card and build my credit back that way. Lastly, another friend said I don't need credit now that I am wealthy, but I think that just a bit nuts so I think I should ignore that advice. I want to be a good steward of the money I received and not blow through it like other people who find themselves in the position I am so I would truly appreciate anyone who could help me. Thank you for taking the time to listen.

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I have to agree with a couple of the friends but no all the friends :) Getting a mortgage in your case could be hard, but with alot of money down you could still get one. That loan will help raise your credit score. An secured card will also help. Both together would be a nice mix and make you on your way to an unsecured card. It cost money to rebuild credit that is a true addage. Goodluck with home ownership either way you decide to go.

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