Reply
New Contributor
zedekc
Posts: 120
Registered: ‎05-26-2011
0

car loan

-   i have just got 3 secured credit cards.  I want to build my credit for a year or more before trying for an fha loan on a home.  Should i take out a car loan to help my credit mix?  or will that just make it worse by giving me more balance on my accounts and higher utilizations?  or will only help me with payment history? idk  Ive never had any credit cards before,  i have  2 collections for like 900 dollars total that are like 2 years old medical bills i think,  no judgements.  experian gave me a 554 score,  credit karma wouldnt give me a score because it said i have a 'thin file'  and the bank loan officer said i dont have a fico score.  are the collections really hurting me bad? or do i still have hope since i only got the secured cards to build credit and i will only  be using them at only 1-4% utilization? (no late payments ever obviously once i start using them((with auto bill pay) after a year or so of that will i be in ok shape or am i going to be screwed for a long time?  

 

-    also my girlfriend recently got evicted when we were broken up,  i was on the application because we were moving in together.  We split before the move and I never signed the lease (which she still has the original copy with only her having signed it: one other guy was going to move in as well as a roomate.  he applied for the place also but never signed the lease or moved in, but he wasn't named in the eviction preceedings)(we are back together now) but they named me in the eviction preceeding for some reason even though i never lived there 1 day?  if that gets on my report how bad of shape am i in? and she showed me the court order naming she and i in as defendants.   Will the landlord quit now that he has kicked her out or continue to seek money through court action then send to collections or w/e? idk

 

-   And i have a wells fargo checking account that went to negative balance(my fault didnt monitor account closely and had a few things on there that were automatic payments when i made alot more money and forgot about that account)  Now i can't open up any more checking accounts because they reported to some bank account reporting service that the other banks check to see if you have bad check accounts with anyone and Chase told me I can't open a checking account for 5 years.  I still have my Bank of america checking account so i am not concerned with more checking accounts but i am concerned about if they are going to report me to collections as well?  do banks do that for checking accounts that are over drawn?  

 

-   Also when i pulled my experian credit report the collections were greyed out? when the reports key said green or colored items were active ...what does that mean could someone who has pulled their experian report recently please explain this?

 

-   sorry for all the questions, i just didnt understand how important credit was or really even understand it really.  I know i have myself to blame, but i want to do good now, and i am going to not mess up now.  If i dont make any late payments on anything and build up my cards limits and use them perfectly will they eventually outweigh my bad spots on my report if so how long till im at 620 fico?  am i really in bad shape or just getting panicky?  and will a car loan be a good idea since im a year out from thinking of applying for anymore credit anyway?(cheap car only like 100$ a/mo buy here pay here place)  or should i just not take on any debt and do just the credit cards.    anyone with alot of credit experience please break it down for me question by question so i know how bad off i am?  (Also I already have 1/3 down payment for the houses I want, just no one can give me a loan yet) 

 

-    (so the short version of this post is:  I ultimately want to get a fha loan on a house within 1-2 yrs or sooner if at all possible.  I want to know if a cheap car loan will help with the process or slow it down.   and will my past blemishes haunt me or because i have a thin file and no trouble yet with actual Credit cards do i still have hope to dig myself out to 620?  and then even if i get the eviction can i dispute that? if not will that cause me to not get to 620 or fha loan? if i can dig out what kind of time frame to go from thin file to 620 with my collections and whatnot?)

 

And again sorry i wrote so much but Thanks for all your valuable time                                       Best Regards,   James

New Contributor
ready13
Posts: 63
Registered: ‎08-07-2012
0

Re: car loan

Don't get the car loan at this point you need to estimate the approval loan time against the time of the Eviction filEd I believe it's 90days but count out that against the time to maybe squeeze in getting to court if you did not sign Any lease your gonna have to try to get off of that it will look horrible if landlord decided to carry on anything to collections for the way the house or whatnot was as far as the state it was left in they can easily do this it costs a bit to even file the eviction so if I was them I'd try to get my money back If not with that by messing with your credit and so also how much did you run up left over balance on wells account ? Show up there willing to pay and pay it off the balance continues to build until it goes into collection and that can add up from 50 to 500 real quick anyhow the more ground you try to cover and clear by proving you want to fix and clear what you left undone the better you look Dude--- fixing stuff or trying doesn't ever hurt and it can't be taken that you tried that's all you can do intercept the approval before these things hit your report because if they will or not is not your choice so do what you can research the time limitations and set up with your mortgage agent to work with you and help you through I have established a really good relationship with my banker and her people so I'm going through the banks mortgage lady who is her good friend that she got her home loan approval through they have been setting me up and tell me what they didn't know or things I may need ahead of time so I prepare for this loan and already will qualify and have established all the qualifications exactly in time for me to make my next move. Get help they are there to help you but you have to be determined and stay on it don't run up your util percentage to more than 5% a piece to equal % 15 so it's totaling no more than 15% under 30% for sure for FHA loans etc !!! And within 3-6 months you'll set up the start of the rise of your credit score if the eviction doesn't make it to court carried situation which will definately show on your report as current or pending which is beyond horrible if I was you I'd talk to landlord even attempt to pay if things need it to keep him from taking that extra step because your score matters A LOT on home loan but the details of your report matter even more if you have any bads and what they are the details in your report current and home type issues -- all bad plus collections totaling more than 1thousand is def. Bad in showing credit worthy of loans etc goodluck

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}