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Credit Score in Knoxville : Real Estate Advice

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Activity 4
Thu Jan 18, 2018
S. D asked:
Thu Feb 9, 2017
Steeder.ms asked:
My husband's score has been about a 685 for months. Of course right when the mortgage people pulled our credit, a medical bill we had forgotten to pay showed up in collections on his…
0 votes 0 Answers Share Flag
Wed Apr 18, 2012
answered:
Hi Brandi,

We see many credit reports with low credit scores (anything less than 620), and often many scores in the 500's. This is BAD credit. If you are one of the folks affected by this terrible economy, you have a low credit score and you have a dream of buying a home, here's some simple advice for you.


It is unlikely you could be approved for mortgage financing with that credit score at this time.

Beware of any mortgage professionals promising you an approval with such a low score. Wait on buying a home. I recommend you take the time to resolve your credit issues.

First, settle any outstanding debt. If you owe money on collection accounts, charge-offs and/or judgments, make payment arrangements and get these accounts paid promptly.

Next, begin rebuilding your credit. If you have current accounts with good payment histories, or even some previous late-payment-blemishes, make sure you continue to pay those accounts on time. If you do not have any existing credit accounts then you'll need to establish several in order to create a viable credit history.

I have found that CONSUMER ACTION is an excellent resource for objective advice on all things credit related. You'll find free and sincere advice on everything from settling collection accounts to rebuilding credit to building credit from scratch on their website. http://consumer-action.org/

Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams. Find more from the FTC HERE. http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre13.shtm


The best way to buy a home is to have a decent credit history combined with sufficient Income and Assets for a home purchase.

The best way to have a decent credit history is to settle negative outstanding obligations and pay all your bills on time for at least two years.


Trevor Curran
NMLS #40140
... more
0 votes 10 answers Share Flag
Wed Jul 28, 2010
Matthew Cisneros answered:
His report should not reflect an 11,000 negative balance on a 9 year old account. Look for his
DLA (date of last activtivity). If the delinquency date that led to default is older than 7 years this
item should be removed from his credit report whether it is paid or not.
Even when lenders report a derogatory item on someones credit, they must still follow the
FCRA (Fair Credit Reporting Act). You can obtain a truly free copy of your credit report from
each credit bureau once a year at www.annualcreditreport.com This report will not give you a credit
score, unless you opt to purchase a score. The most important thing to start with is the credit itself,
not necessarily the score.
This will tell you what area's you can address to make the most significant impact on your (his) credit
score. If you can clear derogatory, and find ways to improve your scoring in the other four areas that
compose your credit score your score will improve greatly.

Hopefully this was at least a little helpful. Feel free to email me if you have any further questions.
Matt
... more
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