So I'm new here. Trying to find out if my dispute I sent in will change my score and if so, which direction? Scenario is my ex-wife did not fulfill her payments on a vehicle loan. I was co-signer. The lender contacted me months later, I had no idea the loan was going to collections, about a settlement. I figured I would pay what we agreed on just to get it cleared up and off my credit. Well I was uneducated about the fact it doesn't just "clear up" or "fall off" your reports. So, I looked at my reports this week and see on 2 of them I still have a balance and it shouldn't be. I have since sent one letter. Now I guess it's a waiting game. But my question again is, what, if anything, will getting those balances to reflect zero do to my credit? If it moves the score, how many points do you think it would go? thx
I forgot to say that I did pay off the amount the lender and I agreed upon for collection purposes and not the entire portion of the loan. So it still should reflect a zero balance correct? I just want this to go away but I know it will still be there for another few years. That brings up another question. How long does something like that stay on your credit? The loan was established in 2001 and went bad in 2002. Our divorce was in 2001. Yeah, I was stupid for co-signing but I wanted to help her with her credit and she needed a new car. UGH! What a mess. I've since re-married and have a wonderful wife with solid credit. We are possibly going to be getting a house in about 4 or 5 months. I hope! 
What are your FICO scores? When did you pay the debt? Usually negative info stays for 7 years!
If you paid the debt in 2002, your CR's have had time to age the negative history..have you had clean credit since the baddie in 2002? Getting the CRA's to update a zero balance should help...it did for me..and I saw a 5 point score boost the next day! YMMV It was only a $355. medical bill though!
If you paid the debt in 2002, your CR's have had time to age the negative history..have you had clean credit since the baddie in 2002? Getting the CRA's to update a zero balance should help...it did for me..and I saw a 5 point score boost the next day! YMMV It was only a $355. medical bill though!Mortgage lenders like to see a clean CR for the past 24 months! Even people w/ BK's are looked at after 2 years.
Best of Luck
all 3 of my scores are above 700 now...my median is actually 713, thought it was higher but i was looking at the wrong report...lol... anywho, this specific baddie was paid, per settlement agreement back in 2006....i didn't check my credit reports for almost 3 years and moved 3x's, so i just was unaware of any default on the car loan that she had done....needless to say i was ticked off but instead of pretending it didn't exist i made an agreement and paid 6k on the settlement, half of the actual loan amount... i just hope this doesn't change my situation for possibly getting a house in about 5 months...i've worked very hard in keeping my credit in good standing since my bk in 99...no lates, multiple cc's and a couple car loans, all in great standing....the 2 black eyes i had were the 99 bk and the default loan i didn't know about until 2005/2006...so the last 2 years, if that is what they look at more, have been great as far as my current credit is concerned.... thx for the replies, this site is so helpful!
Are your scores FICO's? or FAKO's? When in 2006 did you pay the baddie? You may need that debt to hit the 2 year mark...but, a banker/lender can advise you on that for sure.
$ down, DTI, time at job, credit scores.....these are all things you are going to have to have in order for a mtg...that is why I suggested you contact someone, now. This summer will be here before you know it and you really should be prepared BEFORE you apply for a mtg!
We are getting a mtg. in March, and I started the process (credit report clean-up, lowering util, etc.) in Nov. I am hoping I am ready by March!! Even though our banker says we are "o.k." now, I would like to hit the 720 score by March.
Your scores are really good now!
So, just going by scores you should get a great rate! But, like I said before, there are other determining factors to get a mtg!
So, just going by scores you should get a great rate! But, like I said before, there are other determining factors to get a mtg!
sun my scores are fico, my wifes scores are even better than mine and her cr is very good...i'm not too concerned about the scores as much as i am what is inside the cr, ie, the bk and the baddie....i believe it was late 06 that i took care of the baddie... combined income= 100k i've been with my job 11 years, she is going on 3 at hers.... not sure about money down yet, i live in MD and homes in my area are not cheap, we are looking at a median home price of about 270k, we don't have a lot saved but hoping to put down at least 10k.... i just don't want a hard hit on our cr until we are ready for buying....do you think they would look at my cr that i pulled and be able give me an honest answer on where we stand? my wife is much better than mine so i have no worries there...it's my cr that i'm a little concerned with... thx again, btw, good luck with your mtg
thx! 
also, mtg lenders are unique because in some cases, a statement about a bad mark that can be proven will allow them to ignore it. my dad co-signed a loan for me and i made a couple of late payments by mistake. when he went to buy a house, I wrote a letter to the lender stating that i made the payments and was responsible for the lates, even providing them with copies of checks to that account as proof. cleared things right up. when you talk to your potential lender, make sure that you bring as much supporting documentation as you can and the bank may not even worry about that baddie. Your scores, income and employment history are so strong, I doubt you'll have too much trouble.
Message Edited by orhippychic on 01-11-2008 09:14 AM