I must admit I feel Stupid!!

[lisal101370]

Thank you Starting Over10 for your positive words. Our combined income is about $90,000.00. I have been saving all my loose change ( I know it's not much) but the last time I took it to cash it in it was right at about $60.00. We have eliminated the cable extras, cut out netflix, bought less expensive groceries, changed our cell phone plan to a lower one, stopped buying gifts for people (cards only for birthdays, new babies, etc.....I am a HUGE gift giver and tend to overspend on others) etc...some small changes.

As for the balance chase, I believe that is happening. I had $7600.00 credit limit from Rooms To Go last month, I logged in to pay this month and I was reduced to $1600.00 credit limit with a balance of $1576.00 so I guess they cut it down just enough to cover what I owe them.

Not as concerned with higher credit card limits in the future, more so with just the over all score better. We want to purchase a home, have VA eligibility, but with our scores it won't happen anytime soon. I hate that this happened and am afraid we are looking at 7.5 years before we can purchase a home.

[empiror22]

the other guys have given some good advice on your current issues, i personally would pay the accounts with the higher interest first (instead of the lowest balance, i think in the long run it will save you money). 

But i will make a few comments about the VA home loan thing. 

1st:  VA guidelines say something like you should not have a missed payment in 2 years (however you can usually explain if over 1 year, depends on situation), no I MEAN NO MISSED Payements within 1 year.  So fix the issues now and you could be in a VA Loan faster then you think.

2nd:  Scores will increase over time, (with good payment history),  Many lenders for VA loans have lower "score requirements" then other loan types ( I have of a company or two that will lend money to approx 580 credit score, again work on payments and GWs and you should be above the 580 or higher in a year maybe 2)

3rd: look in veterans united, i have heard good things about them  with people whom have similiar issues

[lisal101370]

thank you empiror22 for the input...I hope that is the case and that we can get in a home sooner.

2 years is better than 7.5 if we can do that it would be Awesome. I plan on getting as much paid off as I can and then keeping a very low running amount on one card once they are paid off. My student loans will be years before I can pay them off as well as our car payments.

Hopefully, if everything is paid down and all payments on time and as agreed going forward we will qualify in a couple of years.

I'm so glad I posted here. I've been reading this board for months trying to absorb as much information as I can.

Thank you everyone for your advice and words of wisdom. It is very much appreciated.

[empiror22]

just to let you know, i got my info from a VA loan underwriter policy work book ( ie the ones that real underwriters use when doing VA loans).  So keep up the good work and you'll fix your credit and have a home in no time.

[lisal101370]

thank you empiror22. Is there anywhere on line that I could find the guidelines you are referring to? I would love to see what all it says.

Also, in reagrds to VA loans do different lenders have different requirements or do they strictly follow VA guidelines?