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Despair! 2 years of credit repair, no results.

Posted on: 20th Mar, 2009 09:09 pm
I paid off old charge offs a couple years ago. My current credit situation is this:

$18178 - student loan (never missed a payment)
$ 7100 - car (never missed a payment)
$ 102 - CITI card ($4,000 limit, never missed a payment, transactor for the past 6 months - no balances carried from month to month).

I work in the insurance industry and make a decent living (+45k) and live in a pretty low cost area. My DTI is 20/29.

The problem is that in college I racked up a couple credit cards and let them charge off. I paid these off more than two years ago. The negative tradelines are:

1) First National Bank Omaha credit account - total charged off $750. Listed as charged off, paid in 2005.
2) Household Bank - total charged off $550. Listed as charged off, paid. Paid in 2006.
3) 4 late payments on a Discover card in 2004.
4) $220 medical collection account in 2004. Paid.
5) Parking ticket collection account - $130, paid in 2006.
6) Paid judgement from 2003 regarding a fine for riding a subway without a pass. $120 paid in 2004, judgement satisfied.

I have been working really hard to make on-time payments to show that my previous ways were reckless youth. I am now old (late 20s) and want to get a mortgage (loan of about $95,000), but my scores are sub-700.

I really don't know what else to do. I have tried calling these companies but they are not willing to remove any of these items. I fear that I will never be able to own a home.
try LexingtonLaw.com they may be able to help you
Posted on: 20th Mar, 2009 10:20 pm
sub-700 scores won't keep you out of the mortgage market! what kind of score do you have exactly?

getting the old credit off isn't that easy, and please don't bother to pay for it. if they show up with zero balances and your score is above 620, you'll (perhaps) qualify for fha financing.

give some more detail about the score.
Posted on: 21st Mar, 2009 06:26 am
TUC: 670
EXP: 655
EFX: 635
Posted on: 21st Mar, 2009 07:40 am
Sorry...those are my scores above.
Posted on: 21st Mar, 2009 07:40 am
those are pretty reasonable scores, beechkingair...certainly good enough to get you into an fha loan. you could go conventional, also, depending on your down payment, but you'll pay a penalty any time your scores are that low with conventionals.

fha rates are quite comparable with conventional loans - maybe half a point higher; but that minimal difference should not stop you. half a point on a $95000 loan is only $475, after all.

you need to get into the market now...don't wait for paid credit to drop off. they are paid in full/satisfied now, right?
Posted on: 21st Mar, 2009 07:50 am
yes everything is paid off. I would prefer to use my company's credit union to get a loan, but I guess I could go FHA. The other problem is that I do not quite have a 20% down payment yet.
Posted on: 21st Mar, 2009 07:56 am
with fha loans, you don't need 20% down. the minimum is 3.5%.
if your credit union is a portfolio lender, you may very well get away with a good rate despite scores below the best pricing threshold.

and i was incorrect in citing pricing for you above. fha would be much cheaper than conventional, because you'd be harshly penalized on a conventional loan, and that half-point would actually be less than you'd be charged in comparing fha with conventional.

if your credit union is strictly a conventional lender, you're going to want to shop around a bit more. and don't get me wrong, because i am a great believe in credit unions. i belong to 3, and i used to work for one - making mortgages, personal loans and credit cards. i don't ever plan to do my banking with a traditional bank again.
Posted on: 21st Mar, 2009 08:03 am
oops..."great believer" instead of "great believe."
Posted on: 21st Mar, 2009 08:03 am
hold on a minute...you spoke about your "reckless youth."

is riding a subway without a pass really classified as "reckless" these days? wow...and i thought i had issues when i was in college! :lol:
Posted on: 21st Mar, 2009 08:05 am
The real reckless part was that I got in NYC when I was visiting a friend, and got a $20 ticket for riding without a pass...then forgetting about it and letting it go to collections and then judgement.
Posted on: 21st Mar, 2009 08:12 am
I think it would be better if you could remove that collections from your credit report and then look out for a loan.
Posted on: 22nd Mar, 2009 10:03 pm
Those scores should not hold you back from getting or atleast applying for a loan. FHA might be the best route for you to go right now. Low Down payment. I think they look for 2+ years of work history. 2 years of w2 forms, 2 months bank statments, and recent 2 pay stubs.
Posted on: 25th Mar, 2009 10:53 am
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