If you always had excellent credit but got in trouble with credit cards due to illness and theft, are you still able to purchase?

Asked by Kybutterfly2008, Frankfort, KY Mon Apr 2, 2012

Two good incomes, 48,000.00 cash, a property to selI, 2 old credit card debts, fair credit ratings.

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Michelle Smi…, Mortgage Broker Or Lender, Louisville, KY
Mon Apr 2, 2012
Lenders don't put too much emphasis on medical collections. However, if I am reading your question correctly, these are credit card issues as a reult of medical issues. That makes a difference.

It really depends on what your credit looks like. If there are errors due to theft, they can be fixed and the corrections would likely help your score. You need a good mortgage professional to take a look at your credit and see what is b3eing reported on each account, as well as find out what your scores are. That is your best starting point on the path to purchasing a home.
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Thanks so much. Could you suggest where I begin?
Flag Mon Apr 2, 2012
Joel Lobb, Mortgage Broker Or Lender, Louisville, KY
Sat May 11, 2013
What Is A Good Credit Score?

Almost all creditors create their own sets of guidelines for giving out credit. A good credit score means you qualify for a competitive interest rate on home loans, car loans or any other loan. It also means your creditworthiness to banks, insurance companies, and other money lenders. A good credit score helps you save on interest expenses. This money can be use towards your post retirement plans.

How Does A Low Credit Score Impact Your Credit?

A bad credit score or poor credit history harmfully affects a lot more than just your credit.

It negatively impacts your credit report.
You may fail to qualify for credit cards.
You are most likely to be turned down for big purchase loans.
You might have restricted credit lines.
You might be subjected to higher interest rates, insurance premiums, utility costs, etc.
You can lose potential job opportunities.
It costs you on your mortgage.
Your pocketbook may also be hit hard.
If you already are a home owner or a new home buyer, improving your FICO score is the most critical step. In addition to saving you money with lower payments, a good score can mean a bigger and better house, the chance to take out more money on a refinance, or even the difference between being able to buy a home.
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Scott Godzyk, Agent, Manchester, NH
Mon Apr 2, 2012
the best bet is to meet with a local and trusted loan officer who can prequailify you at no cost.and let you know. Anyone else is just guessing without looking at your report and financials.
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Alan May, Agent, Evanston, IL
Mon Apr 2, 2012
If you've always had excellent credit... but then got in trouble with credit cards (regardless of the reason)... and that has damaged your credit... it could impact you ability to obtain a loan, or minimally it could impact your rate.

Contact a local loan officer and ask them to work up a pre-approval for you to see what/if you're eligible to obtain a decent loan.
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Annette Levi…, , New York, NY
Mon Apr 2, 2012
I would need to see your credit report to give you the correct answer. Did you report the theft to the police and credit reporting companies?
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Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Mon Apr 2, 2012
Maybe, we look at the total picture, shoot me an email if you need help, good luck,
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