You are here:

Living on a Budget, Saving Money/Credit Score rating??? General question...

Advertisement


Question
Hi Tim,

I'm certain we are alright and I apologize if I'm in the wrong place. I didn't know who else to ask this question too.

My boyfriend and I are in a tricky situation. I've been renting with his family for about two years now. Always made payment of rent on time, when I got paid( they accommodatedme as there was no set date but a time frame)

I've finished school, I've got a loan I've been paying for almost a year and a half, never missed a minimum payment. (Done electronically) I make all payments on time for things like my phone. Bill, bank fees, insurance costs...

I've kept my job out of school in my field for 2 years. I make  $1000 a month and the rent is 900$ . The bank won't let me have a credit card though without a deposit. Still saving for it. I'm afraid I've got bad credit.

My boyfriend however, makes anywhere between $400-600 a month. He has a credit limit of $2000 and owes still $1700 of it but that fluctuates. He's paid it off in full twice over the past two years just because he has to fork out $3000 a year because his loan isn't enough, never misses a minimum payment either.  He also has a loan for school. He doesn't need to pay it yet, he has one more year.

Now his dad lost the house we were staying at. So now we are looking for our own place. What worries us is that we won't pass the credit check at this apartment we found because we will have bad credit. Because we owe a lot or we don't make enough for the rent by ourselves but combined we can....

We are getting a report soon but I want to know were gonna be ok.
Otherwise we might be homeless....

Answer
I am taking that the question is how do you get a place to rent with bad or no credit.  There are other ways than just depending on your fico score.  It is hard but it can be done.  First you can get letters and payment history from the bills you pay regularly now. Also get a letter from the person you have been renting from that you are having to leave now. Another major factor is your income. Do what you can to increase your income.  Get a part-time job or look for a better paying job in your field.  I know if you listen to the news that they say the job market is terrible. They also told the Wright brothers that man flying would be impossible.  Just make a strategic job search and stick to it. There are tons of resources here http://www.48days.com/store/, there are a lot of free and great information here as well.  Also you may consider renting a room from someone,in their home,  or splitting (renting) a house with some one.  Your rent should be no more than 25% of your take home pay.  Also, credit is not a real big help for you right now, it is taking all of your income to service your debts.  The world says you cant have anything unless you have debt.  That's not so, truth says debt robs you of the ability to build any type of wealth.  When all of your money is going out in monthly payments you have very little left over and you feel overwhelmed. Then you spend what you do have left on the emotion that you deserve to go out to eat, or by this or that. Then you stay in the same cycle living pay check to pay check never having enough money.  Get on a budget and start telling your money what to do or the lack of it will always tell you what you will do. Be patient, you are going to hear alot of people saying no to rent, no to jobs, and no you will never get out of debt. This is not something you do for a while but the rest of your life.  I hope this helps some.  

Living on a Budget, Saving Money

All Answers


Answers by Expert:


Ask Experts

Volunteer


Tim West

Expertise

Budgeting, credit, collections, basic insurance and investing. Small business budgeting basic will and estate planning.

Experience

Financial coach since 2009. Help coach people in personal and small business financces.

Education/Credentials
Head of financial ministries at Grace Fellowship of Augusta,Dave Ramsey Certified financial counselor and 20 years of doing it my self.

©2016 About.com. All rights reserved.