Basic stuff I can't seem to find [Need Help] Hey all, I'm a newbie (Just wanted to get that out right away and I tried searching for the info, but I didn't seem to pull up anything that related directly to my situation, although I only went through the first two pages of results. Let me give you guys a quick breakdown. I'm moving shortly, and I'd like to buy a house. I'm only 26, but my FICO is currently at around 538 (Ugh). I was young, dumb and didn't stop and take a look at the rammifications of purchase, paying on time, etc and now I'm paying for it. I'm currently at the point where alot of my payments for things are always late because I can't afford to get caught up. Anyways, here's the questions. I'm trying to buy a house and I'd like to get my FICO up to something respectable in say, 6 months or so. Here's a basic breakdown of my current CR. Car Loan: Paid off, last 2 years have been on time payments. 2nd Car Loan: About 3K to go (1 yr worth of payments), always 30+ days late for like the past two years. Occasional 60+ lates. Three Collections, two paid, one outstanding. Two Old Judgements, 1 Satisfied, 1 Outstanding. 1 old loan, paid off but still listed on my CR. I have the documentation from the OC stating that the loan was paid off, so I think I just need to get that to the CRA's. That's it, really. Now, I thought about doing this all last year, so I modified my tax information so I was claiming 0 all last year, and will file for 2 to get a large return. I'm expecting about 4-5K between state and federal. With my new job comes a signing bonus, which should bring me to a minimum of 8K after all is said and done (Inc tax + Signing bonus = 8K). I'm not so much trying to get out of the debts, I view paying the debts as a penance for being stupid while younger, and I don't think I could get out of them anyways. What I WAS wondering, is is it possible to negotiate with the OC on the Car Loan and some of the Collection Agencies to get the late payments removed from my CR in exchange for paying off the balance of the loan, Collection amount, etc... Since I still owe on the car and they know that I do make payments, if always a month late, do I really have any leverage, since I do owe on the debt and they know I will eventually pay it off? I view using the 8K to fix my credit as a better long term investment then placing a larger down on the house. It'll also get rid of alot of the idiot bills that keep me from paying other bills on time, which further damages my credit. I'm only about 6K in debt at the most. I'm hoping to get my CR from 538 to at least 620-650 or so, in order to capitalize on some of the interest rates available now. Is this possible and realistic? If so, can anyone give me an idea of how to go about it? Thanks! -J
Basic stuff I can't seem to find [Need Help] By the way... How much of a FICO Jump, or more importantly, how much better doe sit look to mortgage lenders if I go through and reduce my debt to 0? (Pay off Car Loan, any outstanding judgements, collections, etc...)? That would leave all the Late payments, etc on my Credit Report, but would set all the accounts to a status of "Paid" or whatnot. -J
Re: Basic stuff I can't seem to find [Need Help] Pay off Car Loan, any outstanding judgments, collections, etc....)? and would set all the accounts to a status of "Paid" or what not. Jakester =================== And leave your credit still screwed up. All this would do is cost you all this money and leave you worse off on your credit reports along with making it harder to repair your credit.
Re: Basic stuff I can't seem to find [Need Help] Get current with everybody you owe. Then clean up your past "misdeeds". You are not in a very deep hole and you can dig your way out relatively soon. When you get out, you can get the mortgage you want.
Re: Basic stuff I can't seem to find [Need Help] Not the EXPERT, but I suspect that it will take 1 to 2 years to get your FICO score to 620+. Here are some suggestions. 1. Do you really need that second car loan ? Can you pay if off early ? 2. Get a GOOD - ( not a rip off in fees! ) - secured credit card. The best seems to be American Pacific Bank www.apbank.com. Make sure every payment is on time. 3. Try validation tactics and/or goodwill with your delinquent accounts. After a year or two, the late payments will be less damaging to your FICO score. With luck, you might get the 60 day late off your credit report. 4. Go and get one or two PASSBOOK loans where the loan is secured by a savings account. Make sure that the bank and/or credit union reports the loan to the credit reporting agencies. Congratulations on the $8K bonus. You will get your mortgage, it will just take about a year or two.
