How does selling a house affect your credit?

Anonymous · ‎08-01-2007

I don't have the greatest score (low 600's) but it is not bad either. My main thing that hurts my Credit is my debt to income ratio. My Fiancé makes quite a bit more money, but of course this does not show on my account just the things we have bought. Cars, couple of department store credit cards, a credit card without a limit, and of course the house (house is in my name alone).

The housing values when I am Virginia Beach are somewhat dropping and may drop even more next year.

My main question is how does having a house on your credit really affect it?

I know that in terms of debt to ratio it adds a lot. But someone told me that a person with a house is looked at differently then one without it. Such as a score of 750 with no house and a score of 675 with a house is almost the same. I kind of find that hard to believe.

I plan on selling the house by end of 2008 because I am moving from here. But I may sell in next few months to avoid dropping values.

I am also about to sell one of my cars and get a new one. So will getting rid of my house help my credit or leave it about the same? If I am about to buy my new car should I wait till after I sell my house to that amount is off my credit or before so I am still a home owner in the system.

To me I would think help because then I wouldn't have that $200k on my credit score. But then again I wouldn't be a home owner till I moved. So when purchasing my new car should I do it after or before I sell the house. (Not taking into account the equity I will cash out with)

CreditDrama85 · ‎08-01-2007

given your situation, your credit score would probably drop once your house is sold. it would drop because although you are decreasing your debt to income, you will lose points for not having the ideal credit "mix" anymore. and it sounds like you have a decent amount of revolving debt, your score will take more of a hit for this if your mtg is paid off.

i would purchase your car while you are still a homeowner; generally homeowners with a not so good score are less of a risk than someone who is not a homeowner.

Anonymous · ‎08-01-2007

Hmmm, So what I have heard is true that selling the house will hurt more then help. I do have a decent amount of revolving credit.

This is my first time getting involved and activly talking on here I should have done it before!! Please tell me what you think!

Here is my layout: As of Mid July 2007

TU: 637

EQ: 609

Ex: 603

Showing 2 negative hits 30day late 1 in 2001, 1 in 2006

Here was my layout: Jan 2007 So my scores are on the rise!!!!

TU: 582

EQ: 582

Ex: 574

Revolving Credit cards that are mine is a

$4000 Credit Limit one for the Military Exchange (I'm assuming this is similar to a department store card). $3000 balance

$6000 Credit limit BofA card that I never really use since it is a travel card.

$0 balance

I am an AU on my fiance's CC also which has no limit,

but balance usually hangs around $8k

Credit Purchases on a one tim deal for the low insterest rate for funiture:

$1600 (to be paid off after my Hawaii trip inOct)

$540 (Paid off same as above)

The mortgage is at $190k

1st car is at $47k

2nd car is at $26k (to be sold in next month)

Motorcycle is at $7.5k (In the progress of being sold should be complete by next week)

Also have 2 student loan acounts but they show as 4 account

with a current balance of $5k

So any advice to what will help. I now see selling my house may hurt more then help. As you can see the motorcycle and 2nd car are about to be off. and by end of the year the Haynes funiture cards will be gone. Then at Spring next year I plan on the purchase of a new car.

Comments would be great!!!

Anonymous · ‎08-01-2007

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Anonymous · ‎08-01-2007

gq6967 wrote:
I don't have the greatest score (low 600's) but it is not bad either. My main thing that hurts my Credit is my debt to income ratio. My Fiancé makes quite a bit more money, but of course this does not show on my account just the things we have bought.   Cars, couple of department store credit cards, a credit card without a limit, and of course the house (house is in my name alone).
The housing values when I am Virginia Beach are somewhat dropping and may drop even more next year.
My main question is how does having a house on your credit really affect it?
         I know that in terms of debt to ratio it adds a lot. But someone told me that a person with a house is looked at differently then one without it.   Such as a score of 750 with no house and a score of 675 with a house is almost the same.     I kind of find that hard to believe.
I plan on selling the house by end of 2008 because I am moving from here. But I may sell in next few months to avoid dropping values.
I am also about to sell one of my cars and get a new one. So will getting rid of my house help my credit or leave it about the same? If I am about to buy my new car should I wait till after I sell my house to that amount is off my credit or before so I am still a home owner in the system.
To me I would think help because then I wouldn't have that $200k on my credit score. But then again I wouldn't be a home owner till I moved.   So when purchasing my new car should I do it after or before I sell the house. (Not taking into account the equity I will cash out with)

Im only guessing here...I don't see that selling a home would have any affect on your scores.

When applying for credit you are asked if you own or rent. If you own you carry more favor as they feel that you have something for them to attach if you default.

As for scores. CC carry more weight then a mortgage.