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Frequent Contributor
iltph
Posts: 356
Registered: ‎02-28-2008
0

Depressed with high income and bad credit

[ Edited ]
My wife and I both make $130,00 combined, have zero kids, and both have credit scores around 580 on average. Most of our charged off debts are over five years old. I haven't bothered to try to do anything as far as credit goes for years because I knew it was bad. We now only have one vehicle and we need a new car. In 1999, I had a five year loan with my Dad's credit union (which I've belonged to for 30 years) and was over 30 days late 7 times, but paid it off. They recently denied my loan application, which was kind of surprising (at least to me) due to our income and job history (both over 2 years with no gaps / she works for the Federal govt). The loan was for $23,000 and we were going to put down $3,500. I thought credit unions were more willing to help people with loans than other companies?

I asked my Dad if he would cosign and he talked to the CU and he said they wouldn't give him the loan since my mom cosigned on my sister's new vehicle and they are planning to buy one for themselves at the end of the year. His credit score is just under 850 and has never made a late payment and his house is paid off.

A few weeks ago I applied for a $300 secured credit card with CITIBANK and was denied. I couldn't believe it when I opened the letter and there was no credit card even though they cashed my check. How in the world does anyone get denied for a credit card when the cc company gets the money in advance??? Give me a break!

Most things will fall off our CRs in the next 2 years, but there will still be a few things that won't fall off until 2012. We would like to buy a house in a few years and know it will be difficult down the road. It is very depressing to be denied for all this stuff and make a lot of money and not be able to buy anything unless we have the money upfront.

Since I can't seem to do anything to rebuild my credit, I was wondering if some of you could give me some advice and fill me in on something that I'm not aware of. The only thing on my CR that I'm making payments to is my student loan, which has never been late in over 5 years.

Also, the CO that won't fall off until 2012 is with NCO Financial and is over $3,000. Would it be better settle? If so, would it stay on there until 2012 and just say paid off or can it be deleted entirely? I'm confused if it would be better to wait it out, which is a loooong time. If settle, how much do the CAs usually settle in terms of %?

Message Edited by iltph on 03-04-2008 10:42 AM
-------------------------------------------
April 2009: TU 768
March 2009: EQ 671
February 2009: EQ 666
January 2009: TU 667 | EQ 620 | EX 669
December 2008: TU 651 | EQ 625 | EX 649
April 2008: TU 642 | EQ 636 | EX 635
November 2007: EQ 542


November 2006: EQ 501
Moderator Emeritus
Timothy
Posts: 9,252
Registered: ‎03-19-2007
0

Re: Depressed with high income and bad credit

My advice is first get organized - 
 
Get everything in a spreadsheet or MS Money
Get your bills on AUTO pay and/or online bill pay.
 
After you know how much $ you have to work with and a budget set up- 
start with the most recent problem account-
If it's in collection- get with the OC and see if they will pull the collection back for a settlement or PFD.
 
If they refuse- move to the next most recent one-
 
Be ready - as anything in your closet will start to come out as you make credit improvements.
 
 
 
Moderator Emerita
Community Leader
Epic Contributor
haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007
0

Re: Depressed with high income and bad credit


iltph wrote:

Since I can't seem to do anything to rebuild my credit...

Hi, iltph, welcome to the forums! In fact, you are in charge of your credit, and you can most certainly rebuild it. You need information, determination, self-discipline, and time. Everyone here on these forums has been in your situation to one degree or another.

Start with what Timothy said and get a clear picture of what's going on with your money. And by the way, everything that you will read here needs to be done WITH YOUR WIFE! She needs to read the forums with you. This job is tough enough when only one person participates.

In addition to getting a picture of your money flow, read the Credit Education tab up at the top of this page (all the way through it), and then read Credit Scoring 101. It's linked to Timothy's signature (RTC101), and it's also stickied up at the top of this forum. You sound like you are in serious need of a morale boost, too, so you should also read through Success Stories and Encouragement, which is also up at the top.

Once you have done this basic homework, please post what's on your credit reports, the good, the bad, and the ugly, complete with balances, credit limits and dates. You should get some useful feedback that will get you started toward taking control of your credit life. Good luck! :smileyhappy:
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Valued Contributor
ngerasimatos
Posts: 1,278
Registered: ‎06-01-2007
0

Re: Depressed with high income and bad credit

[ Edited ]
First of all, welcome.

Secondly, if you have such a high income between yourself and your wife. Why for the past 2 years haven't you been paying off these old debts?

Also, it should be noted FHA does not have a min score requirements for loans.

Q. Does FHA use a FICO credit score for loan qualifying?
A. No. FHA is one of the only types of real estate mortgage loans that currently does not require a FICO credit score.

http://www.fha-home-loans.com/

Q. Can only a first time home buyer use the FHA loan program?
A. No. You can use FHA home loans as many times as you desire when buying a home or doing a mortgage refinance. The only guideline is that you cannot have more than one outstanding FHA mortgage loan with a loan to value of higher than 75%. You can own rental property and purchase your primary residence using FHA mortgage financing.

Q. Can FHASecure refinance FHA loans help me save my house from foreclosure?
A. Yes. The newly released FHASecure program is designed to help people with subprime loans that have adjusted after June 2005 who currently have mortgage late payments or facing foreclosure can refinance using the FHA home loan program, FHASecure.

Q. Does FHA use a FICO credit score for loan qualifying?
A. No. FHA is one of the only types of real estate mortgage loans that currently does not require a FICO credit score.

Q. Can I streamline refinance my FHA loan at any time?
A. Yes, you can streamline refinance assuming that the you are lowering your monthly payments or converting the loan to a fixed rate mortgage.

Q. Can I buy a 4 Unit Home with FHA loan financing?
A. Yes, you may use a FHA mortgage for buying a 2,3, or 4 unit home assuming that the FHA mortgage amount does not exceed the maximum FHA loan limits for where the property is located.

Q. Can I buy a home with no down payment and get 100% financing using a FHA loan?
A. Yes. Using a FHA insured real estate first mortgage in combination with other specialized no down payment and first time home buyer loan programs, such as CHFA Loans, you may be able to buy a home with no money down.

Q. How long after a bankruptcy can I use a FHA loans for buying a home or mortgage refinance?
A. You may buy a home or do a refinance mortgage using FHA loans two years after the date of discharge for a bankruptcy, assuming that you have maintained perfect credit since the discharge of the bankruptcy with a FHA streamline refinance loan.

Q. How long after a Foreclosure can I use a FHA mortgage loan for buying a home or a refinance mortgage?
A. FHA loans may be used for buying a home or FHA mortgage refinance three years after the final date of foreclosure assuming that your credit since the foreclosure has been perfect.

Q. Are there any other home loan resources that can help me with buying a home or a refinance mortgage?
A. There are some excellent resources on the internet to learn about or search for real estate. First we suggest you get pre-qualified for a home mortgage loan especially if you are a first time home buyer, you can search various home loan programs such as VA home loans, hard money loans for those with bad credit or CalPERS home loans (aka PERS home loans) is you are a member of CalPERS, LRS or JRS. You should also check some mortgage calculators to get an idea of the FHA loan amount you qualify for. If you already own California real estate you can get a home equity loan or a home equity line of credit which can be used to purchase investment homes. If you plan doing so you should order a annual free credit report then you should search real estate listings of homes for sale from real estate agents or homes for sale by owner.

Message Edited by ngerasimatos on 03-04-2008 12:02 PM
Try not to become a man of success but rather to become a man of value
Albert Einstein 1879 - 1955

700 Club
Super Contributor
MidnightVoice
Posts: 8,161
Registered: ‎03-25-2007
0

Re: Depressed with high income and bad credit

OP - high income and poor credit is better than some of the alternatives  :smileyhappy:
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
Frequent Contributor
iltph
Posts: 356
Registered: ‎02-28-2008
0

Re: Depressed with high income and bad credit

[ Edited ]


Message Edited by iltph on 03-04-2008 05:42 PM
-------------------------------------------
April 2009: TU 768
March 2009: EQ 671
February 2009: EQ 666
January 2009: TU 667 | EQ 620 | EX 669
December 2008: TU 651 | EQ 625 | EX 649
April 2008: TU 642 | EQ 636 | EX 635
November 2007: EQ 542


November 2006: EQ 501
Senior Contributor
fishbjc
Posts: 3,417
Registered: ‎11-30-2007
0

Re: Depressed with high income and bad credit

My wife and I both make $130,00 combined, have zero kids, and both have credit scores around 580 on average. Most of our charged off debts are over five years old. I haven't bothered to try to do anything as far as credit goes for years because I knew it was bad. We now only have one vehicle and we need a new car. In 1999, I had a five year loan with my Dad's credit union (which I've belonged to for 30 years) and was over 30 days late 7 times, but paid it off. They recently denied my loan application, which was kind of surprising (at least to me) due to our income and job history (both over 2 years with no gaps / she works for the Federal govt). The loan was for $23,000 and we were going to put down $3,500. I thought credit unions were more willing to help people with loans than other companies?  If you were late that many times, that may be the reason.  CU do help their members, but members must help themselves.  Can you HOLD OFF on this auto until your scores raises a bit? 
Try sending a gw letter to see if they will remove one late, or two, or three, or more. 

I asked my Dad if he would cosign and he talked to the CU and he said they wouldn't give him the loan since my mom cosigned on my sister's new vehicle and they are planning to buy one for themselves at the end of the year. His credit score is just under 850 and has never made a late payment and his house is paid off.  If you can stick with this site, follow the advice, you won't need a co-signer in a few short months.

A few weeks ago I applied for a $300 secured credit card with CITIBANK and was denied. I couldn't believe it when I opened the letter and there was no credit card even though they cashed my check. How in the world does anyone get denied for a credit card when the cc company gets the money in advance??? Give me a break!  If they cashed your check, you should receive the card.  Was the letter an actual denial? 

Most things will fall off our CRs in the next 2 years, but there will still be a few things that won't fall off until 2012. Are these baddies?  Collections?  Charge-off's???
 
We would like to buy a house in a few years and know it will be difficult down the road. It is very depressing to be denied for all this stuff and make a lot of money and not be able to buy anything unless we have the money upfront.  No sense in being depressed.  You got yourself into a mess, but it's time to get out of it.  It WILL HAPPEN.

Since I can't seem to do anything to rebuild my credit, I was wondering if some of you could give me some advice and fill me in on something that I'm not aware of. The only thing on my CR that I'm making payments to is my student loan, which has never been late in over 5 years.  You're in charge and YES you can increase your score.

Also, the CO that won't fall off until 2012 is with NCO Financial and is over $3,000. Would it be better settle? If so, would it stay on there until 2012 and just say paid off or can it be deleted entirely? I'm confused if it would be better to wait it out, which is a loooong time. If settle, how much do the CAs usually settle in terms of %?  It sounds like you accept the debt, but why haven't you paid this?  It CAN be deleted, it's called a PFD.  You would, in writing, offer them a settlement, if they would in turn delete this entire trade line.  Of course, get it in writing.  Search this site for PFD letters.  Do NOT speak to anyone on telephone, snail mail only and NEVER sign your name.  Since they bought this debt for nickels on the dollar...I'd offer them 25-30% and negotiate from there.

 

Do NOT make any sudden moves right now.  Get everything printed out and get REAL about it.  Make a BUDGET and stick to it.

You do not need a lawyer, you can do it yourself.  Get your wife involved as well, so you're both real about it. 

 

Please list your debts, collections, charge-offs, anything current other than student?  Are all cc closed?


 
 
Regular Contributor
ct99
Posts: 113
Registered: ‎11-08-2007
0

Re: Depressed with high income and bad credit

You can do this!!  I agree with what has been posted so far ... I have been at the depths of low -- after really screwing things up several years ago, my score was soooooooooooo low -- like under 500.  I vowed NEVER to be late again and have not been.  20 months later, I got an auto loan for 15,500 (on a purchase price of 17,900) with no co-signer and scores right around 600.  Now, a full 24 months from the lowest of low, I'm flirting near 700.
 
It takes TIME -- a lot of it.  And acknowledgement of your bad habits.  You did this -- you need to say to yourself "My lack of discipline brought this upon myself but I can fix it!"  You really need to set a budget and do as much paying on-line or auto pay as possible. 
 
Its a lot of work and is embarrassing ... I'm a single income over 60,000 and I did this to myself.  Now I'm fixing it with the help of these forums.  The people here are so helpful and if you follow the tips/advice, you'll be back in control in no time :smileyhappy:
 
GOOD LUCK!!  You can do this!!!
6/19/08 TU: 699/EQ 711
Contributor
Minnie
Posts: 80
Registered: ‎12-11-2007
0

Re: Depressed with high income and bad credit

It can be depressing at times. But, like everyone has said, you can fix it. It takes time, but you'll feel better as small improvements are made. I would definitely try for some PFDs on the collections. According to this board, lots of folks have success with those -- and they are probably hurting your score a lot even though they are older...And, as far as feeling down about it, spend some time each day working on it -- write a few GW letters, etc., and then don't think about it anymore. There is no use fretting if you are doing something to fix it...GOOD LUCK!!!
Frequent Contributor
iltph
Posts: 356
Registered: ‎02-28-2008
0

Re: Depressed with high income and bad credit

[ Edited ]
Try sending a gw letter to see if they will remove one late, or two, or three, or more.

I mailed a letter two years ago to them asking this and they just ignored it.

If they cashed your check, you should receive the card. Was the letter an actual denial?

The letter included a check that was returning the $300 that they took from me and yes, they did deny me. :smileysad:

Are these baddies? Collections? Charge-off's???

All credit card debts that have been taken over by CAs.

Do NOT make any sudden moves right now. Get everything printed out and get REAL about it. Make a BUDGET and stick to it.

Should I send DV letters to all of the entries that I have on my accounts/collections? I have one that will be out of the SOL next month (Apr 2005 was the last day they received payment), and they have two other accounts of mine. Should I just wait until May before making any contact with them?

Please list your debts, collections, charge-offs, anything current other than student? Are all cc closed

The only active debt that I have is my student loan. I haven't used a credit card in over 5 years.

I am actually starting to feel that there's hope! Check out what I just found on the FTC's site on my Leasecomm debt after doing some Googling. I should be able to have this removed by contacting the CRAs.

What can I do about my credit problems as a result of my dispute with Leasecomm?

c. If you paid off a judgment or still have late payments giving you credit problems, you could dispute the debt with the credit bureau on the basis that you believe you were defrauded or for whatever reason you think appropriate. Note that the FTC cannot take a position about your particular dispute. Each case depends on its own facts. Also, in settling their cases against Leasecomm, neither the FTC nor the state agencies made any determination that Leasecomm violated the law.

Is there anything I can send a credit bureau or potential creditor to help dispute or overcome the negative information about my Leasecomm debt?

The FTC staff has prepared a general letter summarizing the case against Leasecomm for individuals to send to creditors or credit bureaus. This letter will not say anything about the facts of your case, but may make it easier to explain your dispute. It will still be up to the creditor to decide whether to give you financing, and the credit bureau to decide how your dispute affects your credit rating.

Message Edited by iltph on 03-12-2008 02:48 AM
-------------------------------------------
April 2009: TU 768
March 2009: EQ 671
February 2009: EQ 666
January 2009: TU 667 | EQ 620 | EX 669
December 2008: TU 651 | EQ 625 | EX 649
April 2008: TU 642 | EQ 636 | EX 635
November 2007: EQ 542


November 2006: EQ 501

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