New Contributor
Posts: 120
Registered: ‎05-26-2011
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