Hello all,
I am trying to buy a home by the end of the year and my credit is still very low. My EQ score is 562 and EX 588. I don't have a clue about TU. I had high utilization on my one credit card of $2000 but recently paid down to about 300 (thanks to the advice here). This should give me a boost though I'm not sure how much. I do have some issues that I need to address before applying. First a judgment against me for rent left behind by my ex wife (3,000). A couple student loans (3600 and 1550). Other than that most of my credit history is very old. I recently paid off a car that but had a few lates back in 2010. Im hoping to be close to buying a house soon. Can anyone tell me if I have a shot?
Starting Score: 565
I am not an expert, but I seem to remember reading somewhere on here that the cut off is a credit score of 620. Even if you look at "where you are" it doesn't go below 620. I personally have paid some things off and/or down an my score jumped about 20 points. I might be doable... Good luck
Starting Score: EQ 625 TU 630Well hopefully with a lot of the old negatives falling off it may help. Also my credit card was near max utilization.
From what I can see so far you have a couple of steps to obtain a FHA loan, fix the old credit baddies and establish a total of 3 tradelines for new credit (you already have at least 2).
For the fixing part, you will need to either pay the judgement or have the judgement vacated. If it falls off of your report, that won't help you with an FHA loan, the judgement will still show on the public records. The quicker you take care of this, the better you will be at the end of the year.
Next, the unpaid student loans will keep you from getting an FHA loan. It is considered a serious derog. So are the loans Federal loans (I assume) or private loans? Take care of the student loans so they show paid before you make application for any type of mortgage.
As far as the lates on your car loan go, see if you can GW will late pays in 2010. That will ultimately help your score. Even if you can't get rid of them, you should be ok with the lates on your report.
Next, how many other lines of credit do you have? I see you have a paid auto loan and a credit card based on your post. So you have at least two recent tradelines. In our area, FHA likes to see 3 active tradelines. You might consider getting another cr card after you have fixed the above. Don't use the card other than to charge a tank of gas and pay it off before the statement drops. You should see good increases with the combination of fixing the old and establishing the new. You probably can get this done rapidly depending upon the balances for the judgement and old school loans.
BTW, don't tell the creditors you are fixing your credit to buy a house. They will be un-cooperative then - and you will have to pay much higher fees and payoffs. It's none of the creditors business why you are fixing your credit now. Good luck! 
@StartingOver10 wrote:From what I can see so far you have a couple of steps to obtain a FHA loan, fix the old credit baddies and establish a total of 3 tradelines for new credit (you already have at least 2).
For the fixing part, you will need to either pay the judgement or have the judgement vacated. If it falls off of your report, that won't help you with an FHA loan, the judgement will still show on the public records. The quicker you take care of this, the better you will be at the end of the year.
Next, the unpaid student loans will keep you from getting an FHA loan. It is considered a serious derog. So are the loans Federal loans (I assume) or private loans? Take care of the student loans so they show paid before you make application for any type of mortgage.
As far as the lates on your car loan go, see if you can GW will late pays in 2010. That will ultimately help your score. Even if you can't get rid of them, you should be ok with the lates on your report.
Next, how many other lines of credit do you have? I see you have a paid auto loan and a credit card based on your post. So you have at least two recent tradelines. In our area, FHA likes to see 3 active tradelines. You might consider getting another cr card after you have fixed the above. Don't use the card other than to charge a tank of gas and pay it off before the statement drops. You should see good increases with the combination of fixing the old and establishing the new. You probably can get this done rapidly depending upon the balances for the judgement and old school loans.
BTW, don't tell the creditors you are fixing your credit to buy a house. They will be un-cooperative then - and you will have to pay much higher fees and payoffs. It's none of the creditors business why you are fixing your credit now. Good luck!
Thank you for the information. I will get started on the judgments ASAP!!! Does it make a difference how long ago it was paid at the time you apply for a loan?
@Anonymous wrote:It depends on, how fast you can prepare documents and tidying up in the meantime.
The first thing that has got to go is the Judgment. This also, of course is the hardest avenue, but it is possible.
Chances are good.
Thank you, how far are you away from your home purchase?
Just got my updated credit scores and they went up a little. Equifax is 591 and TU is 606. Hopefully over the next 11 months of on time payments and low credit card balances. My report will look better. Working on paying off the Judgments now.