I can’t believe I am learning so much about finance. The mental health system doesn’t teach you these things AT ALL! Holding onto a frozen orange or those condescending breathing exercises and hours of therapy and a cupful of pills will do nothing to help you get your credit score up or get approved for a loan. Nada.
I am teaching myself about mortgages, how to get one, how to negotiate in this confusing maze of lenders, real estate people, and brokers. I got turned down before I even applied about six months ago and figured there was no way. However, it seems that persistence has paid off.
First of all, getting your credit score up requires strategy. Which strategy you pick depends on your individual circumstances. How good are you at making your payments on time? Are your rent and utility payments timely? Your landlord may, or may not be reporting to the credit agencies. That I know of, subsidized housing landlords do not report, but I could be wrong about this.
To get credit you need to borrow and then, pay back responsibly. You can start small and then, borrow more as you show them how responsible you are. Don’t screw up!
I DID screw up many years ago. This is still sitting there, a black mark on my record. However, since then I’ve paid all my bills 100%. Even when I couldn’t pay all my credit card balance, I paid regularly at least the minimum.
Since I am capable of keeping track of multiple accounts and not screwing up (now that I’m not drugged, medicated, or a revolving door syndrome) I chose to get more little credit cards and keep paying them so that my available credit is very high now. Then I finally applied for a personal loan. This turned out to be a wise decision as it jump-started my credit. All my cards have been paid in full since then, every month. I have paid off most of the personal loan and am surprising myself (and the lender) by paying off a two-year loan in six months.
Trying to get a mortgage pre-approval was a dead end for a while. No, no, no. I knew I would be a good potential borrower, but it was hard to convince them. Every time I got turned down I got more advice by those that said no. Some gave me valuable hints…And this was FREE ADVICE.
Just think, you can go to a therapist and for tons of money end up with bad advice, such as coerced dependency and being told you have a fake illness. But I got helpful advice entirely free!
Yes, they call me a lot. That’s fine because my phone is in airplane mode most of the time!
When I got my pre-approval letter for a lot more than I assumed I would I put that letter in a safe place and feel quite proud of myself.
Now those real estate people have changed their tune. Suddenly I’m not worthless in their eyes. We shall see what happens next.