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Small credit history, should we give it a go?

Established Member

Small credit history, should we give it a go?

Ok, for the last few months I have been working with my DH on getting our next house. I believe we will have to use his scores for the loan: his scores are TRU = 690 Equifax = 709,  mine are TRU = 731, Equifax = 709. My concern is that he does not have enough credit history.  His reports show 3 student loans in good standing, a CC with a limit of 500 and a car loan that was paid off in 2006. He also has some baddies to clear. We are planning to purchase a home for around 165 to 170K and put down 10 to 15K as a down payment. I am thinking about having a meeting with a LO in order to get a feel for what needs to be done next. What is a good step to improve his credit history? Should I put his name on one of my credit cards?

 

Thanks in advance for your advice.


Starting Score: TransUn 681 Equifax 704 Mar'10
Current Score: TransUn 731 Equifax 704 Aug'11

TU 736 EQ 704 EQ 686 May12 pulled by LO Goal Score: 850

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Valued Contributor

Re: Small credit history, should we give it a go?


CruisinCindy wrote:

Ok, for the last few months I have been working with my DH on getting our next house. I believe we will have to use his scores for the loan: his scores are TRU = 690 Equifax = 709,  mine are TRU = 731, Equifax = 709. My concern is that he does not have enough credit history.  His reports show 3 student loans in good standing, a CC with a limit of 500 and a car loan that was paid off in 2006. He also has some baddies to clear. We are planning to purchase a home for around 165 to 170K and put down 10 to 15K as a down payment. I am thinking about having a meeting with a LO in order to get a feel for what needs to be done next. What is a good step to improve his credit history? Should I put his name on one of my credit cards?

 

Thanks in advance for your advice.



I am unsure what your intentions are saying you will have to use his scores while your scores are higher. If you are purchasing jointly then they will use the lower middle score to determine rate. Scores do not seem to be an issue IMO, but you have concerns about some baddies. You have no mention on what type of baddies, how old the baddies are etc etc... 

 

He has credit history for several years now and only thing that adds history is time, unless you have an AMEX card older then his oldest account. Adding his name to one of your accounts as a joint or authorized user may improve his score but not definetly and it will lower his average age of accounts (history) with the new credit being added and possibly an inquiry if joint account (unless you have an AMEX card once again and it is older then his oldest account).

Good Luck
May all your dreams and wishes become a reality!
Message 2 of 3
Valued Contributor

Re: Small credit history, should we give it a go?

agree old paid accounts if showing count-  he should be fine

Good Luck

Brian

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Brian B The Loan Professor
Mortgage Banker - offering FHA, VA, USDA , and Conventional mortgages in all 50 states -

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