Reply
Established Member
yarbles
Posts: 18
Registered: ‎10-07-2012
0

If my score is high enough, does it matter what is still negative on my CR?

[ Edited ]

New here and have a few basic questions.

 

As the title asks.. I have pretty much everything covered outside of polishing off my credit score when it comes to obtaining a home mortgage. I've been with the same employer for 2 years and make a reasonable income. I've rented at the same address for the past 2 years as well. I have even managed to save enough for a down payment & closing costs.

 

Everything seems to be inline with the exception of my credit report, I was sitting at roughly 574 about 6 months ago, when I first started working on it and just this month I finally broke roughly 630. 

 

Prior to this I had a small business which went south & causing me to default on 3 credit cards and get behind on my auto loan. I managed to hold on to the auto loan despite going 60 days late & 30 a few times but in the end I paid it off about a year & half ago. The credit cards however were charge offs (3 of them). 

 

My score has now started to reach the area that is high enough to get a home loan, but I'm curious if the credit card charge offs will still keep me from getting a loan? Will the lenders still turn me down for these charge offs even if my score is high enough and all other bases are covered?

 

I'm looking at a basic FHA loan or potentially a USDA due to my location.

Starting EX : 578 EQ : ??? TU: ???
Current: EX : 630 EQ : 639 TU: 684
Goal: 700 to start
Regular Contributor
wanttomove
Posts: 181
Registered: ‎03-25-2011
0

Re: If my score is high enough, does it matter what is still negative on my CR?

To me, and I am no professional, but IMO credit score is what you need just to get you in the door when applying for a mortgage. Yes, it's a gauge to see where you are in credit worthiness and whether you might qualify but it doesn't end there.

Because you have three charge offs I do see how it can be a problem. I think it depends on how much, and how long ago. There is a lot of back and forth as to whether these will have to get paid, and I think they may need to but its best to go on the advice of your lender.

I guess the only way you will  no for sure is by applying. Good Luck.

New Contributor
Elcid89
Posts: 567
Registered: ‎10-04-2012
0

Re: If my score is high enough, does it matter what is still negative on my CR?

FHA usually wants to see no lates newer than 12 months, i.e. they have to be at least 12 months old, and the older the better. YMMV, but you should be ok.

FICO 04 scores: 809 (EQ) 812 (EX) 818 (TU)

Amex Platinum NPSL - Citi HHonors Sig. $58k - BMW Ultimate $40k
Chase Sapphire Preferred $62k - Merrill Lynch + Signature $41k - USAA Rate Advantage $28k
NFCU Flagship Signature $50k - USAA Cash Rewards AMEX $28k
Citi Platinum Select / AAdvantage Signature $31k - Chase Amtrak Rewards World MC $41k

Established Member
yarbles
Posts: 18
Registered: ‎10-07-2012
0

Re: If my score is high enough, does it matter what is still negative on my CR?

[ Edited ]

Yea my defualts happened in 2010 but with Experian it says my last negitive listing was 1.6 years ago. (I assume they could the date of the charge off)

Starting EX : 578 EQ : ??? TU: ???
Current: EX : 630 EQ : 639 TU: 684
Goal: 700 to start
Established Contributor
bettercreditguy1
Posts: 750
Registered: ‎02-11-2012
0

Re: If my score is high enough, does it matter what is still negative on my CR?

Generally speaking, the more of your bad debt that you repay, the better you look to your new lending insitutuion. So for peace of mind, it would serve you best if you would pay off  your old debts.

Starting scores 01/02/2012 EQ 707(Fico) TU 733(Fico) EXP 735 (FAKO)
Updated scores 06/01/2014 EQ 797(Fico) TU 768(Fico) EXP 769 (Fico), EQ 849 (Next Gen 5/27/14 Penfed)


Remember the Three P's: Pay early in Full, Pay on Time, Patience
Valued Contributor
tooleman694
Posts: 2,296
Registered: ‎08-25-2011
0

Re: If my score is high enough, does it matter what is still negative on my CR?

I have a couple charge offs that are older, but everything after that is perfect. The underwriter didnt even question it.


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+