@StartingOver10 wrote:
Manny, how much is your current car payment?
Do you need a new vehicle or just want one?
I ask that because installment loans don't help you with the purchase of a home. It is one of the biggest reasons people have a difficult time qualifying for a home loan - the new car payment is too large for their income (I see it all the time as a Realtor).
You would be better off concentrating on paying your current vehicle loan on time until it is paid off and then adding revolving accounts to increase your score. Remember to keep the revolving balances at zero except for one that is less than 10% of the credit line to maximize your score.
Have you checked into rehabbing your student loans? That will help you too.
As the other poster said, time is the best thing to heal your credit to get away from the late payments. Work on your savings so you aren't late anymore. You need to have a minimum of 12 months of ontime payments with NO late payments in order to obtain a mortgage.
This is great advice.
To add, if you look at my sig, my scores were 550+ in May 2013. Don't try to qualify for house with 580 score. SO many people don't realize there IS NO QUICK FIX to credit, and then come here wanting to fix real fast to buy a house.
One step at time. Do a search in this forum (and google) for goodwill letters and threads that worked for the lates you want removed. I think it takes 9 months to a year to rehab student loans, but then those will be clean. The lates are the most damaging. While you are building credit, open an account with a local credit union, and get a secured card (about 500). Two to three revolvers are better than one.
For or the collections, don't pay unless they delete. These are called PFD (pay for delete). Since they are small, you will probably get then to agree. If they are not medical, but are cell phones and cable, a bit more tuff. If you pay them and they update to paid in full, your fragile score will take big hit.
i've heard NFCU will be good with good wills.
Also,, the savings is good ideal. I lived for 6 years with cash and paypay debit cash back card for 6 years, it's more important I have several savings vehicles available to me for emergencies. So be sure to pay yourself first. While rehabbing, and paying for delete, try to put 50 to 100 away eqch month. Cut the cable, get a deal for a year of DSL (buy the router), and use an antenna and streaming tv. Have only one phone with the lowest data plan. Hook the phone up to wifi when you get home (of course, other adult members need their phones too, but not the kids). Budget and stick with it, I only needed that savings for a year, but it was well worth it.
Hope that helps. You should have at least 620 fico 04 scores, and mortgages don't want any unpaid collections, nor dispute comments on your file. Plan on at least 1.5 to 2 years here.
Signature needs updating
