No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
Hi Everyone!
My hubby and I want to purchase a home. I worked to increase our credit scores a few years back and it worked beautifully unfornately I got laid off and pregnant at the same time (She's my sunshine) the cost of her birth and 1 income killed all my hard credit work. Flash forward to now, my hubby's credit is ok TU 675 EQ 725 EX 668. He has a car note and 1 credit card, nothing else. Moving on to me AKA the problem child TU 565 EQ 576 EX 617 as you can see i'm in need of serious help. I've started the Dave Ramsey budgeting along with the 52 week money challenge (I had my come to Jesus moment). We've started the FHA loan process i still need to give our loan guy the 2014 taxes and that will be it for the paperwork I KNOW we're not ready to buy but i was hoping for some guidance with my credit. I have a car note, no credit cards. Do I need another credit card to build credit? how many tradelines do we need?
Cap One credit card Charged off 359.00 2/12
Medical bill collections 2,468 1/12
medical bill collections 834.00 5/12
medical bill collections 1643.00 8/14
Student loan collections 5,086.00 3/11
medical bill collections 299.00 12/14
medical bill collections 574.00 1/14
medical bill collections 404.00 8/12
medical bill collections 568.00 10/13
State Tax lien 1,426.00
Where do i begin!!! I was finally blessed with a good job so i'm able to start paying things, SLOWLY. But i just don't know what to do first when it comes to getting an FHA loan. What needs to be off? Whats ok to stay on? Whats most important? (if its the lien, i'm already working on it)
Any help would be appreciated
My first thought is that maybe your husband could apply without you on the loan? If you're not in a community property state, they wouldn't count your credit score or debts.
I'm in Los Angeles CA.
That's a bummer then, because California is one of the community property states. I'm sorry. Best of luck to you. You've certainly come to the right place though. I'm sure one of the pros will be able to help you set up a plan of attack!
Thank you! Fingers crossed.....
You have already applied for pre approval on FHA? What did they say?
I'm no expert, and yours is a complicated file, having said that, I think you take on the state lien first.
I normally wouldn't suggest a loan to pay off stuff, but I think in your case it might be worth a look. It would settle all of them quickly and at once, but mostly it will make it more manageable on a personal level. Just one check to write and one place to deal with. Problem is your situation might make the APR untenable on such a loan.
If you decide to engage the collections, work from the smallest up like Ramsay suggests. Concentrate on paying one off, then move on to the next. Most are only a few hundred dollars. That scenario is the long game approach.
It is possible they tell ya not to do anything. Damage is done. Might be able to do a mortage with the collections showing just as they are, but I dunno, that maybe a individual lender decesion.
Part of rebuilding is having a plan, and then working it.
I still have to turn in our 2014 taxes before my loan guy gives me an answer, so technically we didnt apply yet. Thank you for the suggestions Tax lien first? Then the smallest bills on up. That sounds less stressful than paying a little on all of them every month, thanks again.
Yes! As soon as it's paid in full the IRS takes it off, after that i go to the court and pick up proof its paid then send it to the CRA's.
@Onmygo wrote:
Yes! As soon as it's paid in full the IRS takes it off, after that i go to the court and pick up proof its paid then send it to the CRA's.
Is this an IRS lien or a State of California tax lien? Very different animals unfortunately.
If IRS, sure pay it and then use Fresh Start to get it withdrawn after it's released; very simple process. They'll actually mail the Notice of Lien Withdrawal to you which is more than enough for the CRA's.
If it's State of California as you intimate in your first post, they do NOT do the same (we, Californians, even had a bill proposed to get us to match the IRS process and it stalled, weaksauce, over 170k supposedly) and while paying it is generally a "good thing" it will not help your credit score. I'd wait till I talked to a lender before paying it, there's a high chance they may mandate it be paid, or they might not... hoard your cash until you know one way or the other in that case though the lien could attach to your new property so you likely want it addressed before that either way but you may be able to use said cash now towards something better credit-wise and have some time on the lien.
Google "HIPAA process" regarding the medical collections, and take a look over at the Rebuilding forum too for the collection and charge off.