What would you do? My husband and I are trying to refinance our mortgage agreement. My credit is fine but, I don't have a job so, they will be focusing on my husbands credit. My husbands credit score is a 600 and they told us they will not even look at a loan for us unless his score is a 640. We have 3 months left on our housing contract. Doesn't it take a long time to fix your credit score? I'm starting to panic a little. Any advise would be appreciated.
Fixing my credit?
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Marianne
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Waaay back when I did a realtor gig, it would usually take 6 months of good credit history before I could get people financed, but that's in Kansas.
Ask them what steps you should take. Also, realize that banking institutions have to stay within their banking rules and regulations, but there are other financing options out there. You may have to pay a higher interest rate and have fees, but sometimes you gotta do what you gotta do....
We had three friends that ended up just walking away from their homes. I couldn't do it. Crazy thing is that all these people are better off financially now (years later) than what we ever have been.
Ask them what steps you should take. Also, realize that banking institutions have to stay within their banking rules and regulations, but there are other financing options out there. You may have to pay a higher interest rate and have fees, but sometimes you gotta do what you gotta do....
We had three friends that ended up just walking away from their homes. I couldn't do it. Crazy thing is that all these people are better off financially now (years later) than what we ever have been.
OrganicKale
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I had to walk away from a home I was upside down in and file bankruptcy. I had no options- I was buried under a load of debt from medical expenses that I would never ever begin to be able to pay.
My credit is now better than it has been in years. I just bought a car. Sometimes the worst thing is the best thing.
My credit is now better than it has been in years. I just bought a car. Sometimes the worst thing is the best thing.
If you go bankrupt you are not allowed to do it again for the next 7 years (at least in NC) so some creditors figure you are a good risk so will give you a secured loan. On a house that means a hefty down payment. on a credit card it means a low credit limit and a huge rate. As you establish a history you can usually get the limit raised but the rate will stay above average. Sometimes it makes sense to accept a new card at a lower rate IF YOU CLOSE OUT THE OLD CARD. usually the old card will not lower the rate but it does not hurt to ask.
If buying a house is your goal have a frank talk with a real estate agent they know all the tricks and earn their money only when a sale is made. about half the job of making a sale is arranging loans, that is why a agent loves to see a pre approved customer. In fact with some agents you have to watch out that their 'tricks' are actually legal because they get their money when the sale is made and can play innocent if the loan falls apart after the sale is made.
If buying a house is your goal have a frank talk with a real estate agent they know all the tricks and earn their money only when a sale is made. about half the job of making a sale is arranging loans, that is why a agent loves to see a pre approved customer. In fact with some agents you have to watch out that their 'tricks' are actually legal because they get their money when the sale is made and can play innocent if the loan falls apart after the sale is made.
tortoise
Wild Hare
Don't close old credit accounts! I screwed that one up. :S
Get your free credit report. Not the frescore.com stuff. Go to the credit bureaus and get your credit report. You will not get your score. But you will be able to see what is hurting you and see if you can turn it around.
Pay down your loans. A big factor is how much you owe versus your credit limit on the account. Nearly maxed out cards = bad. After you get a loan, your credit score will drop just because of this.
Don't apply for credit.
Keep healthy credit cards accounts. Even if it is a $300 savings-secured credit card. That doesn't matter if your payment history is good.
I was given the advice that 3 accounts (mortgage, car loan, checking line of credit) without missing payments will boost a score 100 points in a year. Not sure if that is true, but it was a banker that told me it.
Good luck!
Get your free credit report. Not the frescore.com stuff. Go to the credit bureaus and get your credit report. You will not get your score. But you will be able to see what is hurting you and see if you can turn it around.
Pay down your loans. A big factor is how much you owe versus your credit limit on the account. Nearly maxed out cards = bad. After you get a loan, your credit score will drop just because of this.
Don't apply for credit.
Keep healthy credit cards accounts. Even if it is a $300 savings-secured credit card. That doesn't matter if your payment history is good.
I was given the advice that 3 accounts (mortgage, car loan, checking line of credit) without missing payments will boost a score 100 points in a year. Not sure if that is true, but it was a banker that told me it.
Good luck!
FarmerChick
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ask the broker who is going to handle your refi.
he should easily tell you the steps to get that credit score up 40 points as fast as possible.
good luck
he should easily tell you the steps to get that credit score up 40 points as fast as possible.
good luck
If you pay off a old debt make sure you get it in writing before you pay that they will update you credit report within 30 days. I paid off a debt and it took 3 years and a ton of phone calls and threats to call a lawyer to get mine updated.
pinkfox
Super Self-Sufficient
you might also want to look into places that will loan based on alternate credit history (things like rent, bills ect) that might help.
otherwise i was told as others 3 lines of GOOD active credit (mortgage, credit card and school loan, for example )
and get any open credit wiht balances paid down as quickly as possible, the money out to money in ratio will be better which is an almost imediate boost to your credit score!
also any outstanding accounts (mabe late payments ect) give a call and set up payment plans, simply getting intouch with default accounts letting them know your going to pay and how much you can afford a month, it will usually be reflected in your score 30 days after that first payment on those late/default accounts.
otherwise i was told as others 3 lines of GOOD active credit (mortgage, credit card and school loan, for example )
and get any open credit wiht balances paid down as quickly as possible, the money out to money in ratio will be better which is an almost imediate boost to your credit score!
also any outstanding accounts (mabe late payments ect) give a call and set up payment plans, simply getting intouch with default accounts letting them know your going to pay and how much you can afford a month, it will usually be reflected in your score 30 days after that first payment on those late/default accounts.
Veggie PAK
Power Conserver
Unscrupulous collectors. This country is full of them!beerman said:
