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New Visitor
Posts: 1
Registered: ‎01-23-2013
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Can Someone Tell Me.....

We are trying to get financed for a home mortgage. I am having a rough time understanding some things. First, my husbands credit score is 622. We pay our bills on time, no foreclosures, no bankruptcy, nothing.

 

There is an ambulance bill from about 7 years ago for $800.00 that went into public records for being unpaid. We don't utilize all of our credit monthly. However, every time we check his score its in the low 620s. They say we need more installment credit, but he has a truck payment through the bank (always on time.) The only problem with this, is that the bank doesn't report monthly to the credit agencies.

 

I guess what I'm asking is how to get more credit (installment,) faster. We have tried to finance a house for several months now, but his score is always too low. We have 10% to put down. I guess we could get more credit cards, but that's revolving credit. Just looking for someone a little smarter at this than me.

 

Oh, and should we pay the public records dept off? It's been 7 years for that ambulance bill, and it's still going to be on the credit report, no matter if we pay it or not. That is the only thing negative we have
.

 

Thanks for all your help!

Valued Contributor
Posts: 1,146
Registered: ‎11-30-2012
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Re: Can Someone Tell Me.....

That ambulance bill should be dropping off very soon if it's 7 years. When exactly was the bill originally due (month/year)?

Valued Contributor
Posts: 2,300
Registered: ‎08-25-2011
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Re: Can Someone Tell Me.....

How many credit cards does he have.

 

That is a low score if your oldest baddie is 7 years old. I scored higher with a BK with many collections with one as old as 2 years.

Community Leader
Super Contributor
Posts: 5,564
Registered: ‎03-06-2010
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Re: Can Someone Tell Me.....

Toolman is right. You need more revolving credit lines, not additional installment.

 

What credit cards does your husband and you have? What is the credit limit and the balance on each card?

Valued Contributor
Posts: 3,406
Registered: ‎12-19-2012
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Re: Can Someone Tell Me.....

Yes me too. I have a Ch 7 BK reporting and an unpaid collection and my mid fico is 703. I have just paid off an auto loan and I am now paying a new auto loan, along with 3 student loans, and two credit cards reporting. I just got my third credit card and it will be reporting soon. All my open trade lines are in good standing and so are my closed accounts and all report never late.

I think he needs more trade lines. Two more credit cards will definitely help and that auto loan needs to be updating every month. That is hurting him as well. Credit cards should be used for everyday expenses and then paid in full every month.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Established Member
Posts: 71
Registered: ‎12-26-2012
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Re: Can Someone Tell Me.....

I'd  start by contacting the bank and asking them to report all his payments. I know someone who did business with a small town bank in a similar situation. He finally realized that's why his credit score wasn't very high and all he had to was ask and within a month his score had skyrocketed to over 740!

Member
Posts: 23
Registered: ‎01-21-2013
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Re: Can Someone Tell Me.....

By public record do you mean a judgement?  Just wondering as we are in a similar situation.

Established Member
Posts: 71
Registered: ‎12-26-2012
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Re: Can Someone Tell Me.....

Also, if you don't have any credit cards I would apply for an easy one to get. Capital One or Credit One. They give credit to people with lower scores credit...they did me when I was rebuilding. I'm still rebuilding but I'm up in the 665 range middle score. The way I see it, since they aren't reporting on your husbands auto loan, the worst thing that can happen is they will just refuse to report but if they agree, his score will reap tremendous benefits! Whatever you do, don't give up!

Established Member
Posts: 71
Registered: ‎12-26-2012
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Re: Can Someone Tell Me.....

Oops, looks like I misread. Sorry. You have credit cards. Yet, you say you don't use "all" of the credit. Do you keep it below 20%. If not I would focus on getting that paid down and ultimately paid off. I would still talk to the bank about reporting his truck payments. If they refuse, I think I would look into trying to find another bank to take over the loan. Just tell them you want to become a home owner. Banks want your business, especially if you are considering buying a home. Just my two cents worth. I'm by no means an expert. I'm still learning myself. Good luck!

Valued Contributor
Posts: 3,406
Registered: ‎12-19-2012
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Re: Can Someone Tell Me.....

+1, I think you made a good point about the credit cards. We don't know how many OP has and it may just be one. I would try Capital One first as Credit One has a lot of fees.

I would recommend that OP start using the cards each month for everyday expenses instead of cash/debit and then pay in full every month or leave a low balance of <10% on one card. If you get the Capital One Cash Rewards Card, you will actually earn cash back for all those purchases. I have earned $98 in cash back since I opened the card in July as every purchase I make, I get 1% cash back. And then there is 50% bonus cash back every year! I just got the Chase Freedom which gives 5% cash back on bonus categories each quarter. This quarter, it's gas, drugstores, and Starbucks so I am going to be using my Chase Freedom for all my gas purchases through March. LOL!

If you apply for Capital One's green Cash Rewards card, be sure to click to apply for the one for average credit as there are two options on their website. Applying for the one for excellent credit will lead to a denial because of his low score.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
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