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New Member
Hopefulnewbuyer
Posts: 3
Registered: ‎01-31-2013
0

Wanting to be a new buyer....

My husband & I are desperately trying to buy a home for our family so we can finally leave our rental home! We can not move to another rental home as there is nothing available in our area or surrounding areas. I am a stay at home and unfortunately do not have any credit so everything will be based on my husband. He has a $56,000 salary, but still gets paid over time. I contacted a mortgage person a couple weeks ago to speak to them about different programs and get the ball rolling, but honestly were zero help. We know and are not expecting to buy anythin within the month, but were hoping for over the summer. They pulled my husbands credit and he has a 546. He has the energy bill for our current house in his name, has a car payment, a Matco account and has a credit card. Is there anything you could suggest help? Yes his score says he has "bad" credit, but its more of a lack of credit. 

Valued Contributor
tooleman694
Posts: 2,297
Registered: ‎08-25-2011
0

Re: Wanting to be a new buyer....

Even with Lack of credit, his score should be higher. There is something very wrong.

 

With a score like that, you have something very recent that has gone bad.

Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
0

Re: Wanting to be a new buyer....

Has he had any late payments or collections added in the last 12 months? What is the balance and credit limit of his credit card?

The first thing you need to do is pull his credit reports. You can get one free one each year from the credit bureaus. Make sure it truly doesn't have any derogatory information on it. From the accounts you listed, it is hard to believe that it is just due to lack of credit. Post what you find that poses a concern so that we can give you initial steps that need to be taken.

If you want to buy in the summer, you need to work very diligently on his credit starting now.
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
New Member
Hopefulnewbuyer
Posts: 3
Registered: ‎01-31-2013
0

Re: Wanting to be a new buyer....

He just got the credit card in October because we didn't want one. The cc is from Capital One and there is never a carry over balance, the card is paid off every month. We are the type of if we can't afford it we just don't get it. He just purchased the car in December, so if something "very recent" had went "very wrong" I doubt we would have done those things, let alone gotten approved. 

 

What website do I use to get the credit report?

Valued Contributor
Mike_B03
Posts: 1,146
Registered: ‎11-30-2012
0

Re: Wanting to be a new buyer....

[ Edited ]

Where did you get his credit score of 546? From a website or from the mortgage person you spoke with?

 

I would go to MyFico.com and pull both the Equifax and TransUnion scores (you can get the Equifax for free with a 7 day trial, just make sure you cancel within 7 days if you don't wanto to be billed monthly). There must be something pretty bad on there to have a credit score that low.

 

You can also go to annualcreditreport.com and get all three official credti reports there for free, but they won't provide a credit score.

Regular Contributor
my25reasons
Posts: 177
Registered: ‎12-16-2011
0

Re: Wanting to be a new buyer....

Depending on the state you live in, you may be able to get all 3 credit reports (for free) here:

 

 

 

 

AnnualCreditReport.com is a centralized service for consumers to request free annual credit reports. It was created by the three nationwide consumer credit reporting companies - Equifax, Experian and TransUnion.

AnnualCreditReport.com provides consumers with the secure means to request and obtain a free credit report once every 12 months from each of the three nationwide consumer credit reporting companies in accordance with the Fair and Accurate Credit Transactions Act (FACT Act).

AnnualCreditReport.com offers consumers a fast and convenient way to request, view and print their credit reports in a secure Internet environment. We also provide options to request reports by telephone and by mail.

AnnualCreditReport.com is the only service authorized by Equifax, Experian and TransUnion for this purpose. The three nationwide consumer credit reporting companies have always encouraged consumers to regularly review their credit reports.

Please note that, as a security precaution,
  • Consumers should never provide their personal information to any other company or person for requesting free annual credit reports under the FACT Act.
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Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
0

Re: Wanting to be a new buyer....

I use credit for all my everyday expenses. I don't look at a credit card as something to use when you can't afford something.

Credit card companies are trying to change that mindset by offering rewards for using the card. And the more you charge, the more you get back in rewards. I have earned $100 cash back from my Capital One Cash Rewards card. I have a limit of $2500 and I charge about $1500 a month and always pay in full each month. I use it for my bills, gas, and groceries. My checking account has very little activity now because I rarely use my debit card as I can charge the same thing on a credit card and get 1%-5% cash back. Once I get my cash back to $200, I plan to request a check and deposit the $200 in savings. That is a lot of money considering if I used my debit card for those very same everyday expenses, I wouldn't have $200. Then in July, I will get another $100 as you get 50% of the cash back you earned in a year as cash back! I have become a heavy credit card user with minimum debit card usage.
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
New Member
Hopefulnewbuyer
Posts: 3
Registered: ‎01-31-2013
0

Re: Wanting to be a new buyer....

So I pulled his credit report myself from annualcreditreport.com. I haven't looked through all the bureau's yet, but I'm looking at Experian right now. I forgot about a credit card he had 5 years (we weren't married then) ago that he ended up closing. He apparently was late multiple times on it, but paid and closed it. There's also a hospital bill that went to collections 6 years ago and was paid and marked closed. With inquires that show on the credit report, is there any way to have them removed? 

Valued Member
cschick
Posts: 57
Registered: ‎01-19-2013
0

Re: Wanting to be a new buyer....

You can try to see if the creditors will remove the derogatory marks by sending "goodwill" letters. If the inquiries were unauthorized you can dispute those with the bureaus but if your husband did apply for credit then the inquiries will just take time to age off. The rebuilding section of the forums should be able to give you more info about goodwill letters.
FICO: 782(Ex, AMEX 8/12), Mortgage Pull(3.0%, 5/1 ARM from Local CU 2/2013): 725(EX), 757(TU), 772(EQ); 775(EX, Amex 8/14)
Cards: Amex BCE(10300), Discover(7000), Target (1000), PenFed Platinum Rewards Visa (8500), Chase Freedom(5000), Barclay Arrival+ (10000), Amex HHonors Surpass(11,800)
App'd: Barclay & Hhonors Surpass Aug 2014, PenFed & Freedom Feb 2013, Amex & Target Jul 2012, Discover Feb 2008 Gardening til ???
Goals: TBD, possibly a mortgage refi to a fixed rate or better adjustable

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