Long story short… before I started college my dad and I took out a line of credit at a local credit union. I received financial aid and didn’t need or use it. I was 18 at the time and my dad was the primary signer and I was an authorized user or co-signer. I had no credit at the time so this really helped me get credit fast and was able to get credit cards, other loans, etc.
Anyways. My dad was using the account to help build me credit. Well… he forgot to make two payments on it. Once in January and once in June. They were both 30 days late. Now because of the missed payments I have on my credit reports from the 3 major companies that this is a potentially negative report. The account has since been paid off and closed. Since I wasn’t the primary user will this really stay on my credit report/score 7 years? Both payments were small and in the -50 range. BUT Discover card got wind of this and decided to drop my line of credit with them about 1k even though it really had nothing to do with me. I explained that to them and because my name is on the account it effects me too.
Basically, will this stay with me for 7 years? My other 9 accounts are all satisfactory and in good standing; never late and always paid.
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credit card debt,
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earnest money,
fha loan,
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financial situation,
fingers,
gap,
home mortgage,
livable condition,
lowest mortgage rate,
major remodels,
mobile home,
mortgage amount,
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My husband and I will be buying our first home in about 8 months, at which time my husband’s mother will be moving into the new home at the same time. This means that the house needs to be large enough for 3 adults to have their own privacy. Also, the house needs to require very little in the regard of repairs, as we just will not have the money or time to invest in remodeling as we will need to live in it immediately. When we pre-qualified last year we were approved for 5,000. The range for a 4/2 home (in livable condition without major remodels needed) is 5-225,000. This is a large gap that will require a lot of work to close. Our goal is to do everything we can within the next 8 months to ensure we qualify for as large of a mortgage possible when the time comes. His mother will be paying ,000 for the down-payment/earnest money (over the 3.5% required for the FHA loan we qualified for last year) with the majority of the money she gets from selling her mobile home.
These are the steps we have been taking so far:
a) Aggressively paying down our credit card debt.
b) Making sure that all bills are paid on time and not opening/closing any accounts in attempts to raise our FICA score as high as possible, to allow us to qualify for the lowest mortgage rate (crosses fingers).
c) Saving up in order to pay for moving expenses, inspections, closing costs, credit reports and other expenses (not including down-payment, which is already covered as earlier stated). We estimate we will have saved up about 00 when the time comes.
d) His mother will be contributing 0/mo toward the mortgage, but her name will not be on the mortgage itself.
Now my questions are:
1) Besides an increase in income (which we are working on as well) what other things can we do to better our financial situation? credit? chances of finding a suitable home? mortgage amount we qualify for?
2) We are concerned about the amount his mother will lose to taxes in the sale of her home, are there any tricks to keeping as much of the sale amount as possible?
3) I believe we can count the money from his mother each month as additional income, is this correct?
I am really hoping that I can get some advice, tips and tricks I haven’t thought of yet. Thank you!!!
We have spent the last year preparing for the pinch of adding a mortgage, by limiting our budget now. We have been following a tight budget and have been putting all additional money towards debt and savings. That way, not only are we bettering our financial situation but by the time next year rolls around we will already have a working budget that we have been following for 2 years. Between our current rent and the extra money we are putting toward debt and savings we are paying out ,700 a month, that will switch to being a mortgage payment once we buy the home. Add in his mother’s contribution of 0/month and we are currently living at a budget for our home of 00. A 5k home @ 5% interest is only ,100. Even adding in mortgage insurance, property tax, etc. the total home payment each month will fall below the 00 we are currently alloting each month. I am confident that we will be able to afford the home, the only issue is qualifying for it.
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Credit Score Good Range Tags:
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home loan,
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spelling,
wasting my time
So here’s what happened:
I check my credit report, and my husbands monthly through a credit monitoring program called, "my credit keeper" I last checked my report as well as my husbands Jan 01, 2010 and my scores were good and my husbands were in the range needed for us to buy a house about a 640.
We just started doing the paper work for a home loan and of course they ran both of our credit reports and all of a sudden a "new collection account" showed up on my husbands report!
Apparently an old collection account from about 4 years ago was bought buy a new collection agency and they re-opened it as of Jan 18, 2010 showing the original reporting date as the same, Jan 18, 2010.
This action plummeted his score all the way below a 600! I am under the impression that this is illegal because they would be extending the statute where derogatory accounts can only be on your credit for 7 years. so technically this should be off in 3 but by their (collection agency) standards it will be there until 2017…
The agency is really hard to deal with (super nasty) and I am just thinking of getting a lawyer to handle it. Just was wondering what others thought and if this is truly illegal.
Thanks for the advice, fortunately we have pretty much no debt its just that this one account is so old that surprisingly it will not affect my husbands score is a positive way to even pay it so we rather just keep saving our money for a house. I just wanted to make sure this practice so that I wasn’t wasting my time with a lawyer today. Its a shame that companies can’t just act within the law and that I am driven need legal services for something like this! I just want to buy a house darn it! 
Oh and please excuse my spelling and grammar errors in my "details added!" sorry.
I’ve had my first credit card for 1 year and 3 months and the credit limit is currently 0. I pay on time each month and in full. It is never late. I read that applying for a second card will help my score. I read my credit reports and it says I do not have enough accounts and it recommends that i open another card. My score is currently in the high 600s to low 700s range (this varies slightly depending on where I check the score, but it is in that range).
So should I go ahead and try to apply for a second card or am I going to be rejected?
Any recommendations on a good second card I qualify for? I currently only have a bank of america card. thanks!
PLEASE no spam, ads, or irrelevant answers. It’s so annoying how lame some people are with this.
My husband and I have low credit scores due to not good history in the past. We have currently payed off everything on our credit reports therefore have no remaining debt. We have not been late on any car payments in the past 24 months and we have no credit cards. Mostly everything that was on our credit was medicla bills. We have also paid our vehicles off early which one of them is payed off 36 months early. My question is how do i increase our credit scrore. Since we began it has gone up 100 points but that still only leaves us at the 600 range. Is it possible to get a home loan with no debt making 75,000 /yr but not the highest credit score.
I have a 750,746, and a 738 on my credit reports yet my rates on my 3 credit cards range from 26.99% to 8.99% and the 2 higher ones won’t lower my rates. For being 29 years old and only having 1 30 day late ever in my life back in 2001 I find it crazy that they can increase my rates as such just because of what is going on in todays market. I’ve called them to see if they can lower the rates but they said that they can not. I already just up and left my one card because of a 29.99 rate but would like to keep the rest. So my question is what if anything can I do? The 2 high rate cards I pay off every month now just so I don’t have to pay that rate and have a very low balance on the other. Also what is the point of all that hard work over the years when it does nothing for you???
Hello,
I am a college student who has recently opened up 2 credit cards. I pay them off on time, and always try to pay off the full balance. I have had the cards for a few months and my credit score is 709. Is this score good enough to receive an auto loan and be approved for an apartment? One thing I did notice in the credit reports is that my credit card companies reported my credit in the middle of the month, when I had somewhat of a balance on the cards, so I suppose I should pay them off immediately after purchases…?
