Slate is almost clean.. now how do I rebuild?

[cwwatts1202]

I have been working on my husbands credit for about a year now, opened a FP cc last year, only used 10%, PIF each month, things were going great, till his sister stole it and we couldn't afford to pay the charges because we moved the same month she decided to go on her shopping spree. We settled last month and paid it, my husband has 2 collections that will be hitting 7 years one this month and one in May, so those 2 will be off within 6 months, that will leave 3 baddies on his CR, one of which we plan to pay in July and hopefully get deleted (it's credit protection assoc. for a brighthouse networks cable bill) the other is a repo from 2008 which we just can't afford to pay ($7400) and a verizon wireless bill for around $800 that actually should come off sometime next year. We have an auto loan that is on time every month, he was approved for a secured cap one card with a $99 deposit ($200 CL). Once we pay that and get that card, he will only have that card, and the auto loan, should he try to open another card after having the cap one for a few months? There is a company in our county that buys and completely remodels and sells homes and they also do financing and only require a 620 and we'd like to do that next year when our current lease is up in Feb. His score went from a 511 to 558 in the past month so i'm hoping I can get it to a 620 by next feb, i'm just not sure what else to do besides that auto loan we have and the cap one secured card. Is that enough to build it up? On top of the 2 collections that will be coming off in the next 6 months as well as the one we are going to pay? 

[DaBears]

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@cwwatts1202 wrote:

I have been working on my husbands credit for about a year now, opened a FP cc last year, only used 10%, PIF each month, things were going great, till his sister stole it and we couldn't afford to pay the charges because we moved the same month she decided to go on her shopping spree. We settled last month and paid it, my husband has 2 collections that will be hitting 7 years one this month and one in May, so those 2 will be off within 6 months, that will leave 3 baddies on his CR, one of which we plan to pay in July and hopefully get deleted (it's credit protection assoc. for a brighthouse networks cable bill) the other is a repo from 2008 which we just can't afford to pay ($7400) and a verizon wireless bill for around $800 that actually should come off sometime next year. We have an auto loan that is on time every month, he was approved for a secured cap one card with a $99 deposit ($200 CL). Once we pay that and get that card, he will only have that card, and the auto loan, should he try to open another card after having the cap one for a few months? There is a company in our county that buys and completely remodels and sells homes and they also do financing and only require a 620 and we'd like to do that next year when our current lease is up in Feb. His score went from a 511 to 558 in the past month so i'm hoping I can get it to a 620 by next feb, i'm just not sure what else to do besides that auto loan we have and the cap one secured card. Is that enough to build it up? On top of the 2 collections that will be coming off in the next 6 months as well as the one we are going to pay? 

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The ones that are dropping off unfortunately don't go away. They stay in your credit file forever until paid. Mortgage lenders will ask you to disclose any unpaid debt you will have to disclose that with them. They might make you pay it off as well before issuing a loan. It happens sometimes usually when applying for a loan of 150K or more. 

For the CC's keep using them wisely and keeping the UTIL between 1-9%

[cwwatts1202]

So the stuff won't actually come off his CR after 7 years and 180 days??

[DaBears]

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@cwwatts1202 wrote:

So the stuff won't actually come off his CR after 7 years and 180 days??

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The are removed from his credit report from viewing. Unpaid debt never goes away. It goes into your credit file with the CRA until its paid. They just can't list it on your CR after the CRTP has expired.

[cwwatts1202]

A 620 credit score isn't great, and that is all the company we plan to go through requires, none of their homes are $150,000 so hopefully we won't any have issues. We also may go the USDA route. We have no intentions on paying one of the items that is due to fall off, because it is $2400 for a "broken lease" that we were actually let out of because the maitenance men came in our apartment, with no notice, while I was in the shower. We were both very young (I was 19 my husband, boyfriend at the time was 21) we did not know our rights etc. or what to do when we got the letter for breaking the lease and the charges. We went up to the office PISSED because of them coming in with no notice, and the office was so apologetic, told us we could move, even handed us back our rent check we had paid 6 days prior, and we didn't even ask for that!! So there's no way on God's green earth we are paying that! I've disputed it with no luck of course. But being that it is so old, could it really be an issue? I didn't think lenders were too concerned with collections that are YEARS old? Everyone went through hard times a few years ago when the economy fell, I always read you have to pay off collections that are more recent, like within the past couple years? Which my husband has none, the most recent collection was the FP cc that we paid last month. Everything else is 5+ years old, and there isn't that much on there!!

[DaBears]

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@cwwatts1202 wrote:

A 620 credit score isn't great, and that is all the company we plan to go through requires, none of their homes are $150,000 so hopefully we won't any have issues. We also may go the USDA route. We have no intentions on paying one of the items that is due to fall off, because it is $2400 for a "broken lease" that we were actually let out of because the maitenance men came in our apartment, with no notice, while I was in the shower. We were both very young (I was 19 my husband, boyfriend at the time was 21) we did not know our rights etc. or what to do when we got the letter for breaking the lease and the charges. We went up to the office PISSED because of them coming in with no notice, and the office was so apologetic, told us we could move, even handed us back our rent check we had paid 6 days prior, and we didn't even ask for that!! So there's no way on God's green earth we are paying that! I've disputed it with no luck of course. But being that it is so old, could it really be an issue? I didn't think lenders were too concerned with collections that are YEARS old? Everyone went through hard times a few years ago when the economy fell, I always read you have to pay off collections that are more recent, like within the past couple years? Which my husband has none, the most recent collection was the FP cc that we paid last month. Everything else is 5+ years old, and there isn't that much on there!!

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It all depends on the lender. That's why the mortgage process is longer and tougher now a days. I did see the old auto loan that was a charge-off for about $7800? That could be an issue. Hopefully your old leasing office don't take you to court. I'm confused tho why they allowed you to break the lease gave your rent back and still put you into collections.

[cwwatts1202]

I'm thinking the office didn't want to have to tell the corporate office we had to be let out of our lease because the maitenance men came in our apartment with no notice, and had no reason for being there, I walked into the living room, after JUST getting out of the shower if you know what I mean, and they were just standing there... yes we have a repo from 2008, $7400, we'll never ever have the money to pay that. I just thought they let some things slide when applying for a mortgage if they were pretty old. 

[DaBears]

It's possible, like I said it all depends on the lender. 

[cwwatts1202]

Bump-never really got my ? answered about rebuilding will one auto loan and one cc do the job? Should I open a couple CC's? 

[BuffaloBoy]

About what @DaBears said, he said it in another thread too and I was suprised. So I called my local bank and asked them. They've never heard of anyone pulling a file to look at anything over 7 years. Then I called our loan officer (I own a car dealership) at HSBC and he has never heard of anyone pulling a file over 7 years. 

So take that as you will.