What can I do with 35k and bad credit! What to do?

[Jaz McWilson]

Hello, I’m inexperienced in real estate, but it’s definitely something I’ve always been highly curious in! I know 35k isn’t much but I’m just wondering if anyone have any suggestions on what to do or where to start, I have very poor credit also! Just looking for away to add some passive income...

[Alvin Sylvain]

Originally posted by @Jaz McWilson:

Hello, I’m inexperienced in real estate, but it’s definitely something I’ve always been highly curious in! I know 35k isn’t much but I’m just wondering if anyone have any suggestions on what to do or where to start, I have very poor credit also! Just looking for away to add some passive income...

 First thing you do is clean up that credit. There is only two ways to get bad credit: late pays and no pays. Why should anybody want to risk lending you money with that kind of track record?

I suggest finding a bank that offers automatic payments, which shouldn't be hard to do. Many of them will not only automatically send payments, on time every time, but they can be set up to contact your creditors to find out exactly how much is owed. Let me tell you, once I had set up just about every creditor in the computer, I don't even think about it anymore, and my score is in the upper 700's now (800 here I come!)

Also watch your spending -- it's no good attempting to pay people on time if your bank account famously sports a Zero Balance. Over-spending is probably the biggest problem in 90% of the households world-wide, excepting those primitive tribes that haven't discovered money yet. Part of that banking computer thing, create a special account and automatically put aside a certain amount into that account each and every month. "Pay Yourself First" as the motto goes.

The next thing you do is decide what kind of investments do you want to pursue. There's a lot of materials here on BP to read, to discuss, to learn about. While you're waiting for your credit score to slowly climb to acceptable levels, learn everything you can in a broad sense, then figure out where you want to concentrate, then concentrate on that area with LASER FOCUS.

Bottom line, nobody can tell you what to do with some arbitrary sum of money. You need to self-educate to the point where you no longer need that kind of advice. But at least you've come to the right place for that!