Hi, I am new to all this. I have been paying off debt of mine and my husbands for 4 years. I fianally got the guts to get our actual credit reports and scores in July, and then last week. According to my fico mine was 677 and his was 652. Here is my question... I totalled my car in 6/98. The insurance company paid the blue book value. I owed 860. I made payments and paid off the balance with my income tax 2/99. My credit report reads as follows: GMAC settled less than full amount. balance 0 satus as of 2/99: payment after charge off/collection I disputed it and it waws verified and called frivilous. i called GMAC, they said since I didn't pay it off withing the allowabel time period they sent it to their collection center, hence the charge off/collection notation. Also they said I paid 790, not 680 so I settled. I didn't realize what I was doing at the time. I offered to pay the difference they said it wouldn't make a difference on my credit report. is that true? would settled for full amount rather than settled for less than full amount increase my score? Is there ANYTHING I can do about this? Up till that point I had no late payments. It looks terrible, like I just let my car accoutn go into collections due to being irresponsible. Will this keep me from getting a house? thank you so much for any input. JODY
It shouldn't keep you from getting a house. Your scores are fine for conventional financing. FHA financing isn't score driven, but all collections have to be paid off and you have to be clean for 2 years. Good luck. Gib
