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amandakmcneil2

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I need help rebuilding credit.
Hi! I am a 22 year old female who has put myself into more debt than I am able to manage. I have a car loan that is steady bringing my credit up slowly but surely. However, I do have several credit cards that have brought my score down due to late payments. I am having trouble maintaining all of my payments due to financial stress and hardships.
I have consulted with a debt relief company, who is going to help me lower that debt. My plan is to lower the debt in less than a year, with the hopes that will help raise my credit. I am curious, other than my car loan, will a secure credit card help me bring my credit up (assuming I will not qualify for an unsecured credit card and if i do this whole thread can be disregarded) in time for me to attempt to purchase a home? Also, assuming I use said credit card for small things such as gas or groceries, and pay it off at the end of the month!
Any advice is welcome, please!
Also, it is my understanding that when purchasing a home you have to require documents that include information about your bank accounts like your balance etc. Are those documents or statements (reference letters, if you will) required when you apply or qualify for a home that does not require a down payment? If so, what sort of history is better to have in your checking account?

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Top Contributor
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I wouldn't apply for anything.

Also credit debt relief companies will end up hurting your score more in a long run as your reports will likely show that you're using such company.  I would find out if your credit card companies can help you directly to lower payments until you're caught up.

After it's paid off then yes, secured card or any card you can get and maintain at least two years of paying on time will likely help.  You can also look up goodwill letters to get those late payments deleted also.

There are many programs available for zero or low money down mortgage loan if you're a first time buyer.  But for now I would focus on getting your credit improved as most lenders will require 600+ scores to consider you for most mortgage loans.

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