Wanting to buy a house, but 18 year old me didn't plan for 21 year old me

[RAnwar]

So when I was 18, I had a bank account with Wells Fargo for school, that my Grant went into. I was young and careless, and I spent beyond my means. Overdrafting several times. When I stopped going to school I never made another payment and now I'm stuck. I have this Wells fargo account in collections, it's been that way for 4 years, I have a Victoria's secret account that I've made a payment on in the past but can't find the information for seeing as I've moved since that's been there for 4 years as well, and as of 2013 I've got a 12k medical bill from being sent to the hospital and held there to see how I reacted. They didn't do anything at all for me or to me so I don't know why it was so much, but I didn't have insurance then, so it ended up being high. However, I just signed up for insurance, is there anyway to use that to cover the past expense? Helppp I really want to buy the house I'm currently renting but I need the credit to do so, and I'd like the opportunity to go back to school as well...I'm 21 years old now, what do I do?

 

[breeze]

I think you should apply for a mortgage - see what happens. Who knows? Maybe you'll get the house of your dreams.

[trap11]

Wow

[shifter]

I just signed up for insurance, is there anyway to use that to cover the past expense?

That's not how it works...

[JohnWilkers]

Welcome Ranwar,

 

I have a suggestion for you. Please get to know this forum and people involved. I can tell you this forum is going to help you beyond your dreams. Please spend several days and 40-50 hours reading, than ask your questions here.

[dansamy]

Call the three major CRA phone numbers to order your paper reports. That's the first thing you need to do. While you're waiting for them to arrive, start reading.

[moosetracks]

Call the three major CRA phone numbers to order your paper reports. That's the first thing you need to do. While you're waiting for them to arrive, start reading.

 

+1

[TexasRN]

Wait and see what 38 year old you thinks of 21 year old you. Mistakes happen, learn the lesson and head on. Like breeze said, you may get your mortgage.

[Losluv]

Wait and see what 38 year old you thinks of 21 year old you. Mistakes happen, learn the lesson and head on. Like breeze said, you may get your mortgage.

Truth! We all make financial mistakes. Best to make them while you're young and have time to learn from them. You've found the right place to do just that.

 

Welcome to CB!

[funkiehouse]

I think you should apply for a mortgage - see what happens. Who knows? Maybe you'll get the house of your dreams.

 

[mindcrime]

 

I think you should apply for a mortgage - see what happens. Who knows? Maybe you'll get the house of your dreams.

 

You were at my house and didn't say hi?

[chugs102]

The 21 year old you still have a lot of learning and maturing to do.

[dansamy]

 

 

I think you should apply for a mortgage - see what happens. Who knows? Maybe you'll get the house of your dreams.

You were at my house and didn't say hi?

I actually like the Tiny House concept. If my mom would let me build one on her land, I'd build a Hobbit House. Then again, I've always been a bit eccentric. Edited January 12, 2015 by dansamy

[moneypyts]

RAn --

 

Cleaning up your credit takes a little work and patience, but it can be done.

 

Whether you have good enough credit to buy a house now is a matter of what your "2004 FICO credit score" is. There's lots of "credit scores" out there, but it's the 2004 FICOs that matter.

 

You can get a paper copy of your credit reports from each of the three credit reporting agencies. Info should be at AnnualCreditReport.com (You can also get online copies instantly, but they will lack some information that the paper copies have).

 

You should also sign up for "Credit Karma" for free. You'll get a copy of your Transunion (one of the three credit reporting agencies) report, and a credit score. Not a FICO, so it doesn't mean much (uses a different formula than a bank will use, so its a different number), but if gives you a ball-park estimate. If its "500" you probably won't get a mortgage, if its "700" than you have a chance at it. After you get your Credit Karma report, come back to this thread and post specific questions about it and you'll get specific answers.

 

Medical collections -- there's a sections here -- http://creditboards.com/forums/index.php?showforum=39

 

Wells Fargo charge-off -- not sure what can be done about that.

 

Victoria's Secret store card -- sounds like you no longer use the card. The account will show up on your credit reports, and if your 18 yr old self was kind enough to make all the payments on time it will be a positive element on your credit report.

 

With regards to other comments, reading here for 50 hours would be helpful. But you can also read some "newbies" sections to learn about the terms, and go to your local library and check out a book on personal credit. The info here is correct and all, but the signal:noise ration make it challenging to make sense of a lot of it before you've learned any of the terms and acronyms.

 

At any rate, since you're only 21 (not 41, 61, etc.) even if you have made mistakes, you can spend a couple years letting them age off, or get them cleaned up, and still be able to buy a house in your early 20s. Just make sure you always pay your bills on time from here on out, keep your insurance current, and don't buy things with credit that you couldn't afford to buy with cash.

 

Best of luck,

MP

Edited January 12, 2015 by moneypyts