Closed potentially negative account, will I be able to build a home?

[Anonymous]

Hello all,

I am trying to get my credit in the best shape that I can so that I can have a home built on my land. I got a car loan in May of 2008. I paid the car loan on time for 8 months, and then lost my job because of a layoff and in February of 2009 I SURRENDERED the vehicle to the car lot. However, on my credit report, it shows that from the time I surrendered the car, I PAID 30 day late payments for 10 MONTHS and then it says CLOSED in December of 2010. I did not make late payments, I surrendered the car. So, why would it show I was making 30 day late payments every month for 2 years, instead of saying I surrendered the car? Will this hurt me if I try to get a home built, or can I just play along and say "I was only 18" and the account was closed? It only states that I had late payments, not that I owe anything. The credit limit reports as $9770 but the recent balance is not reported, nor is the high balance. The status says "transferred, closed". The "date of status" is December of 2010. I have worked SO hard to get my credit cleared, I have removed so many negatives off of my credit... but this is the last one and I'm scared that it might hold me back. My FICO scores started in the low 500's and now the three are EX: 683 EQ:617 TU:698 Do you guys think this will hurt me?

[takeshi74]

The lates are hurting you.  They're not potentially negative.  They are negative.  If you want your credit in the best shape they need to be removed if possible.  I can't say why it reported that way but hit the Rebuilding subforum to see what you can do.

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@Anonymous wrote:

My FICO scores started in the low 500's and now the three are EX: 683 EQ:617 TU:698 Do you guys think this will hurt me? 

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Your scores reflect this.  Keep in mind that the loan probably won't be based on FICO 8 which is what I assume are what you've provided.

[JagerBombs89]

I think having 30 days late is better than having a "voluntary surrender" or "repossession" listed on your credit reports.

[RobertEG]

It appears that you first went delinquent approx 7 1/2 years ago, and they then began reporting the account as late.

You then voluntarily surrendered the vehicle approx 6 1/2 years ago.

Whether you did or did not make payments does not appear to be significant, as you remained continually delinquent, and thus the reporting of contineued delinquency appears correct.

Delinquency would continue until they sold the vehicle and then provided you an accounting of their net loss after subtracting what htey recouped from your remaining balance on the unpaid loan.  There is no "credit limit," as the account was an installment loan.

They apparently ceased to update their reporting by providing an accounting of the net debt remaining aftr they disposed of the vehicle.

That appears to be the issue that you wish to be corrected.  The account is left unresolved as to the debt balance.

As for the reported lates, they must cease to be included in your credit report no later than 7 years from their dates of occurence.

When do you plan to apply for credit to build your home?