01-23-2013 02:51 PM
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!
01-23-2013 04:48 PM
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?
01-23-2013 06:59 PM
01-23-2013 07:01 PM
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!
01-23-2013 07:06 PM
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!
01-23-2013 07:15 PM
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!
01-23-2013 07:33 PM
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.