How you can still move when you have bad credit.

Sometimes, life happens and your credit rating takes the hit. It's okay. These things happen and you can recover from it! Even more, you can rest assured in knowing that you do have options. You are not stuck. Yes, you can still move even when your credit is less than stellar. Of course, it will not be as easy. But, we're going to provide some steps you can take to make it possible and to give you hope!

The first step
The first thing you will need to do is to figure out whether or not you plan on moving yourself or, if you plan to hire movers. If you have bad credit, sometimes hiring a mover is easier since renting vehicles can be difficult to impossible if you do not have available credit or, credit cards with which to secure the rental.

The next step
Next, you will need to figure out whether or not you have the credit rating necessary to secure a mortgage if you plan on attempting to purchase a home or condominium. Most loan companies these days require a minimum aggregate credit score of 620. If you do not have the credit score you will find that securing a mortgage will be much more difficult if not impossible. We would like to warn you to first vet out your mortgage company options prior to officially applying for a pre-approval. If you have credit that is off the mark, you will want to concentrate your search on companies throughout the industry which specifically work with folks who have less than perfect credit. The reason for this is that multiple inquiries on your credit report can further damage your credit rating, if they are not subsequently followed with new accounts being added (a new mortgage would qualify as a “new account”). Another benefit of working with companies who specialize in this area is that they will typically provide information that will assist in helping you quickly repair your credit so that your next approval process will not end in a declined application.

Before you apply, be sure that you have already obtained your free credit report and have a handle on what is on your credit report. With this information in hand, you'll find that you can provide it to potential lenders while interviewing them, and they will be able to provide you with a much better read on the possibilities of being approved.

Recognize your options
Once you have ascertained your creditworthiness, your next step is clear. If you are unable to obtain a mortgage, and your heart is still set on buying, your primary option will be finding a seller that is offering a Land Contract type purchase. These are not very common but, they are out there. If you are not in a big hurry and are not really selective in the type of property you wish to buy, this may be an option.

However, the best recommendation is to rent. This can provide you with the place to live you need, help buy you time to repair your credit, and let you begin your new life in your new town. The added bonus in this is that you are afforded an “out” should you need to move again in the near future. Rental situations are shorter term by nature and are much easier to walk away from if something happens and you need to move again relatively quickly.

Optimizing your current situation
You can optimize the assets you do have in hand currently by planning your move during times of the year that are not typically known as “peak moving seasons”. You will be able to save money at this time because moving services are in less demand. You'll also find that it will be easier to find an available apartment that fits within your budget since there is less competition. You may find that you'll catch a break and land a flat that you might otherwise not have had available to you. The money you save on rent and moving costs can directly go into your credit repair fund! It's a win-win here.

Begin fixing that score ASAP
The first step in repairing that low credit score is to pay down your debt as much as possible. The easiest way to do this is to begin making payments that are above the minimum required payment. However, with a little more effort, you may also be able to consolidate that debt by transferring the balance to another credit card. There are quite a few companies out there who will offer a bonus introductory Annual Percentage Rate to help you get your debt manageable. This percentage rate will often be zero percent to start. This too, will allow you to eat away at your balance much more effectively than the 20% plus rate you're likely paying at the moment.

Make a budget and, stick to it
The best thing you can do prior to anything else though, is to make yourself a budget. This will put everything on paper (or in pixels) right before your eyes. This gives you direct control in that you know precisely where your money is heading month in and month out. Having a set budget will allow you to make a plan of action, and stick to it. It will also give you the advantage of knowing where it is possible to put a little extra money into paying down your debt and, hopefully, into savings.

Choose your new locale wisely
A consideration that is not often given much thought is the location you live, the location you are moving to, and the relative cost of living in each. If you are able to find a job paying the same wage (or hopefully better) than you are currently making. Having an area with a lower overall cost of living will effectively give you a raise even if everything else stays equal. Having a little extra to wiggle into your budget can add that much more peace of mind.

It can be done!
Yes, the situation is rarely ever as hopeless as it may seem. Bad credit does not need to stay bad as long as you take the necessary steps to improve it. As you take those steps, you will notice the steady climb into better pastures of creditworthiness. Should you need to move in a hurry, some of the above tips can go a long way to get you moved and provide you with a plan to keep bettering yourself and your situation. Good luck! You can do it!

September 26, 2018