10-04-2012 11:49 AM
I need help! My credit is bad, very very bad. My scores from myfico.com are TU-518 and EX-534. I've been reading and searching this forum for a week now, trying to absorb everything I can. I understand sending PFD's and GW and will start on that as soon as possible. But I think what is hurting me the most is my student loans. I have several 120+ lates from sallie mae. I had them in forberance, but moved during the time they were due again and didnt realize i needed to pay. I just don't know what to do. I'm currently living with my parents while I try to save money for a down payment on a house, I hope to buy in a year.
Will lenders forgive me if I pay my student loans on time for a year? I've applied for two secured credit cards, so I will have those and a car payment. We have a house that we are currently renting until july 2013. It is under my husbands name so its not on my CR. We plan to list it in July and have about 40K in equity. I should have about 15K saved up by then too, so we should have a good down payment. The loan will only be under my name, for reasons I don't really want to discuss. I make about 50K a year. I appreciate any advice, thank you!!
10-04-2012 12:21 PM
Everyone is always in such a rush to buy a house. It strikes me as funny that people spend a lifetime wrecking their credit and expect it to be pristine in just a year. Is it possible? Sure anything is possible. But don't set yourself up for failure and disappointment by having unrealistic expectations. Your credit will only improve if you improve your payment history.
Those lates are definitely going to hurt you. The biggest thing to focus on right now is changing your ways and not having any more lates on anything going forward. People have problem getting a credit card with just a few lates on their report. But a home loan is a different story because a few bad items could mean the difference between a good loan and a very bad one for you.
Sorry if I sound preachy, but people expect instant solutions and it's the wrong approach in my opinion. I'd knock your time frame back to 2 to 3 years, make timely payments on everything, rehabilitate that student loan and pay on time with your secured cards. I wish you luck on your journey. Just relax and don't get so wrapped up in your "I need a home in a year" and you will be fine.
10-04-2012 12:34 PM
I appreciate your input. I said I hope to buy in a year, I never said I need to buy a house in a year. The situation i'm in now is not ideal and I would rather not waste money on rent. So if it were possible to get a loan by this time next year then great. If not then I wait. I do get my hopes up reading stories on here about credit scores that have gone up 100 points in 6 months. I'm trying to be patient, but I can't live with my parents for 2-3years.
10-04-2012 12:41 PM
Hello and welcome to the forums!
You have definitely come to the right place. It is good to have a goal and strive to reach that goal. Best thing to do now is get those SLs caught up and keep them caught up. Garden those secured cards and keep all payments current while you clean your report. Get those PFDs and GWs going. Can this be done in a year? Oh yeah, definitely. Good Luck and welcome to the family.
10-04-2012 12:53 PM
Thanks Shogun! Sounds like that is the best course of action for now, just try to keep everything clean and hope when it comes time someone will give me a chance. From reading there is really not a chance that sallie mae will delete the lates from my report. I have several negatives that are really really old, so I'm sure I can get those cleared off. I thought they should have by now with the SOL.
10-04-2012 01:00 PM
The SOL doesn't govern how long something stays on. It's the CRTP. The way to figure that with the lates is they will fall off individually 7 years from their respective dates.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.