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