I'm new but would truly appreciate some advice...

[Anonymous]

Hi,

Simply put, I would like advice on how to raise my credit score to qualify for a better mortgage rate.  My situation is somewhat atypical in several respects.  I'm living in and paying the mortgage on the house I want to purchase.  I left an abusive relationship and purchased a home with my father who could no longer live by himself.  My ex and I had declared bankruptcy 4 years earlier so my father took out the (adjustable) mortgage at that time.   My name was added to the deed immediately after the purchase.  The monthly payments have always come directly out of my bank account.  Every payment for the past 7 1/2 yrs has been on time and I have paid an additional $25 per month.

My mortgage rate recently dropped to 3.5% (great) but I know this won't last and would like to put the mortgage in my name before the fixed rate goes up.  The bk is off my credit report but..My ex and I divided our mutual bills when we split.  I paid my accounts on time but he did not.  Looking back I was very naive (stupid???) and when his creditors called me I merely told them to call him because it was HIS bill (I had the paperwork to prove it - so naive!!).  The RV was repossessed by Partners Bank and the repo showed up on my credit report.  In addition, a year later, M&T Bank bought out Partner's Trust.  I had checking and savings accounts at M&T at that time and they cleaned out my account ($5000) in payment of that bill (his accounts weren't touched..Don't get me started!!!).  The serious delinquency last activity was reported in May 2005. 

I have one late payment that wasn't my ex's fault.  I was 30 days late on a beneficial account in January 2005.  That was a tough time because my dad's condition had been deteriorating and hospice became involved in his care.  It was very difficult being a single parent and taking care of my dad who wanted to die with dignity in his home.  Bill payment was the last thing on my mind at that time.  Dad died 6 months later but I never told the bank.  I knew my credit was bad and I was paying the mortgage anyways.

Sorry for the lengthy background but here is where I'm at now:  Although I've been paying my bills on time for years I had been overusing my credit cards.  My total credit available is $10500.  In January, I was up to $7500 of my available credit.  I now have it down to $5000 and it should be under $2000 by August.  I pulled my equifax score on 2/2 and it was 691 then I (stupidly!!) tried applying for 2 new credit cards at 0% (denied).  I had to get a Home Depot card in Dec to pay for a new water heater.  Anyways, I pulled my number yesterday and it was 681 (I'm so upset!!).  The following were listed as hurting my score: 1. One serious delinquency (husband's repo), 2. Heavy use of revolving credit (I'm working on that) and 3. Looking for new credit (stupid, stupid, stupid!!!).  Here are my questions:

1.  Is is worth contacting M&T and Beneficial to attempt to get them to take the negatives off my credit report?  If so, how do I do it?

2.  What is my best course of action?

Thank you so much for helping!!!

Rosie

[thirtyshort]

I would say pay all of your credit cards down to zero and leave one with about 9% util on it.  This will help you out with your score the most from what I read in your post.

[guiness56]

The one 30 day late is hardly causing any damage now.  It will come off in another 2 years and that account will turn positive again.  Then it will stay for up to 10 years from the time it is/was closed.

It wouldn't hurt to ask for a GW removal of the late.

Was the RV in both of your names? 

Is M&T Bank and Panther both reporting?  Is the repo paid?

I agree that paying down your revolving and letting only one card report at 9% or less will give you a score boost.

[mauve]

Rosie, are you trying to bump this to get additional feedback? 

[MarineVietVet]

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@mauve wrote:

Rosie, are you trying to bump this to get additional feedback? 

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I believe she's having the same compatibility problems using IE9 as many others are reporting. She posted (or tried to) something in the Technical Help board.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[Anonymous]

OK...trying now on my lunch break at work...here is goes...

Thanks!  I co-signed on the RV.  Divorce decree indicated that my ex would take responsibility for the RV - didn't happen.

M&T bank bought out Partner's Trust.  The debt is only reported as Partner's Trust.  It was originally a $12000 loan and we had paid on it for five years prior to the missed payments.  I had an account at M&T and they took my checking and savings ($5000) when they took over Partner's.  I'm sure that made good dent but I don't know how much is owed.

I'm working on the revolving credit.  It was 70% in January.  It's now 49% and I should be paid off by October.  I'm getting nervous about mortgage rates and had hoped to refinance this summer.  

I have my fingers crossed that this works!  Thanks!!

[Anonymous]

I originally posted this so long ago that I am sure no one will even be looking at this message.  So, I guess I'm writing it for me!  When I made the chose to leave my financially irresponsible and verbally abusive ex to care for my dad I thought helping my dying father would be the most difficult thing that happened to me.  Since my ex and I declared bk and had many lates, the mortgage couldn't be in my name so we got a 7 year adjustable rate mortgage. My ex and I divided our bills/credit cards in our separation agreement so when his debtors called me I snottily responded that those were HIS bills (Oh I was so naive!!!). 

 I've always felt that since people are allowed to chose the way they live their lives they should be about to chose how they die.  My dad wanted to stay home and it was so difficult but he was able to stay with me. I really felt good about the choices I made after dad died - then my world came crashing down.  Repo people came to MY home (where he never lived) looking for his vehicle.  He that and the RV repossessed because he didn't pay the bills.  I was distraught!  I truly believed that I couldn't be help accountable for his things because we had a signed agreement.  My credit rating plummeted (not that it had been all that hot before but it was starting to rise).  The following summer the bank cleaned $5000 out of my account to make up the difference in the repo amount.  I work in the schools and have my checks divided over the course of the calendar year so I had just gotten multiple checks for the summer.  I was left with no money for the next 6 weeks.  I had to use credit to get through.

I've paid everything on time for 7 years but didn't make serious efforts to rebuild my credit until January (after Christmas bills!).  Initially my expedian score was 691 then I stupidly applied for new cards and in April it was 681.  I filed disputes and paid down my credit cards and my most recent score was 780.  After everything that has happened I have been so afraid that I wouldn't get a mortgage or I would have to pay an incredibly high rate.  I cried when I was quoted a 4% rate!  I'm ecstatic!   It takes time but there is hope for anyone whose credit was destroyed by their ex.

I know this really isn't a typical (or appropriate?) forum issue.  I'm feeling pretty emotional right now (in a good way).  Thank you to all who wrote on the forums.  The advice was extremely helpful!!!

Thank you!

Rosie

[Anonymous]

Congrats Rosie!

That's an awesome rate on your mortgage and you've done an awesome job!  Uber kudos to you!!!