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Could really use some help, what should we do?

tag
Anonymous
Not applicable

Could really use some help, what should we do?

I need help! I'm not even sure where to start with rebuilding my credit here. There's not much to my and my husband's reports, and I'm unsure of how to proceed, so I could really use some advice!

 

To summarize my questions:
1 - What should we both do specifically to build our scores?
2 - Within the next two years (contingent upon me finding employment), would my husband be able to qualify on his own for a mortgage? Which leads me to:
3 - Unfortunately I only have the one score. I pulled it today and am unsure if I can pull the others again, or if they'd show up as another pull on my credit report? If not, where can I do it?

 

Thank you in advance for looking all this over, even with just the one score.

 

Husband
Income: $33,000 annually
Transunion score: 668
One credit card at 75% utilization but low limit ($449 out of $600 limit).
Age of credit history: 3 years, 8 months
8 accounts (1 open, 7 closed)
Perfect payment history at 100% payments made on time
One derogatory remark: a bankruptcy due to foreclosure that completed in 2010


Wife
Unemployed (currently home with young, special needs son)
Transunion score: 557
One credit card at 35% utilization ($348 out of $1000)
Age of credit history: 4 years, 2 months (oldest open acct is 7 years, 7 months however)
18 accouns open (10 open, 8 closed)
97.59% on-time payment history ***
2 derogatory remarks: same bankruptcy as husband, 1 medical bill in collections for $535 (should have been paid by Medicaid - is the one lone bill from a set of bills that was seemingly missed?)

*** My late payments are due to unknowingly missing the end of my student loan deferrment after I moved last year. This is now in good standing (deferred due to being current student) but the lates show on my report.

 

Here are the negative things on our reports that are due to fall off soon:
Ch 7 Bankruptcy estimated removal 3/2020
Foreclosure from Chase estimated removal 8/2015
All other things associated with bankruptcy have estimated removals of 5/2016 (totalling $2058)

 

Only current collection is that $535 for me (rather, my son's bill, but it is only in my name and not my husband's).

 


So as you can see, our funds are limited, and I wouldn't think of going to try and buy a house until after I'm working again within the next two years (degree completion for special education teacher). I just need to get started now to rebuild my credit for when we're ready again!

 

Message 1 of 5
4 REPLIES 4
vertekal
Regular Contributor

Re: Could really use some help, what should we do?

Lower your CC utilization .. I think under 10% is what people suggest in these forums. See if you can GW the lates.

 

I'm far from an expert here, but that's a start ...

FICO 8:
EQ: 1/2018: 494 | 4/2021: 652 (+158)
TU: 1/2018: 536 | 4/2021: 657 (+121)
EX: 1/2018: 499 | 4/2021: 641 (+142)

Mortgage Scores:
EQ: 9/2020: 560 | 4/2021: 648 (+88)
TU: 9/2020: 564 | 4/2021: 649 (+85)
EX: 9/2020: 576 | 4/2021: 672 (+96)

Message 2 of 5
Anonymous
Not applicable

Re: Could really use some help, what should we do?

"would my husband be able to qualify on his own for a mortgage?"

 

This depends on whether you reside in a community property state or not. If you do, the answer is no - the mortgage requires both of you. If you do not reside in a community property state, the answer is 'maybe'.

Message 3 of 5
Anonymous
Not applicable

Re: Could really use some help, what should we do?

"So as you can see, our funds are limited, and I wouldn't think of going to try and buy a house until after I'm working again within the next two years (degree completion for special education teacher). I just need to get started now to rebuild my credit for when we're ready again!"

If you can pay rent you can pay a mortgage. Just don't bite off more than you can chew. You might look into IDA programs to build up cash for a down payment - you're in the ballpark for income levels. Depending on the program, they pay 2-3 dollars for every dollar you save.

Once you are in even a modest house, you are building equity every month, making it far easier to move up once your incomes are better.

Message 4 of 5
Anonymous
Not applicable

Re: Could really use some help, what should we do?

I would suggest a 3 fold approach. It is best to have 2-3 open lines of credit, looks like you have one each. You may want to look into a secured card through a CU or another lender for each of you. Keep the utilization down to 10% or less reporting. Make all payments on time so you will be in great shape once the foreclosure and BK accounts fall off in 05/2016. The open collection i would suggest getting in touch with the original medical provider and deal with them on pulling the collection account back.

 

1. Get another cc for you and your husband, low utilization and timely payments.

2. Work on that medical collection and possibly getting the lates off your student loans.

3. Wait and make good payments until the 2016 items fall off and you should be in great shape for a mortgage even with the BK still showing.

 

Good luck.

 

 

Message 5 of 5
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