Here’s the final question in our series of Midwest Money answers from Ali and Christine, based on their new book, How To Speak Money: The Language and Knowledge You Need Now. (Each person whose question was used will receive a copy of the book.)
Imran Kahn of Chicago writes,
My father was a realtor. So, during the housing boom, I purchased two homes and rented them. Then the housing bubble blew up. My property was worth a quarter of what I paid for it. I stopped making payments. The banks harassed me and then eventually disappeared.
Now, a couple years later, I am trying to build my damaged credit score back up. I got a credit card that was sent to me in the mail. I am paying on time. Why is my score still so low? How can I get this score up fast? I need to move on.
Ali and Christine reply,
Imran, we all need to move on from the housing crisis. But sadly, it is still with us. There is no fixing it fast, and there is no fixing your credit score fast. We’re not going to pass judgment on your foray into speculative real estate or on deciding to walk away. That’s a conversation for another place. But in the eyes of the banks, you are a terrible credit risk. That’s why your credit score is so low. Continue reading