Posted on: 02nd Apr, 2009 12:55 am
We are registered domestic partners/married gay couple and we both have bad credit. I have a score of 511 he has a score of 550. Most of the debt is over 4 years old and past the statute of limitations. I earn appoximately 3000 take home he earns 2000. The houses we were looking at are under 100,000.
Is it possible to divert all of our money to payoff his debt and keep me off the loan in order to qualify for the home? Or should I pay off my debt and keep him off? Or should we both pay off stuff until we make it to the 600's? Obviously it will take some time but the sooner the better. What should we do???
Is it possible to divert all of our money to payoff his debt and keep me off the loan in order to qualify for the home? Or should I pay off my debt and keep him off? Or should we both pay off stuff until we make it to the 600's? Obviously it will take some time but the sooner the better. What should we do???
Hi calipartners,
I think you should wait for some time and improve your credit scores before you apply for a loan. Both of you should start paying off the debts and work on improving on your credit. Once you both have a 600+ credit score, both of you can qualilfy for a loan at a affordable rates and terms.
I think you should wait for some time and improve your credit scores before you apply for a loan. Both of you should start paying off the debts and work on improving on your credit. Once you both have a 600+ credit score, both of you can qualilfy for a loan at a affordable rates and terms.
the new magic number is 620, though there are assorted loan programs that fit scores below 600 also.
i also suggest you repay your debts and work on getting your scores up to snuff. inasmuch as your two scores aren't that far apart, it ought to take each of you approximately the same length of time to do this.
if you act quickly and also continue to pay other obligations in a timely manner, you'll be pleasantly surprised, i think, to see scores increase in a short time.
i also suggest you repay your debts and work on getting your scores up to snuff. inasmuch as your two scores aren't that far apart, it ought to take each of you approximately the same length of time to do this.
if you act quickly and also continue to pay other obligations in a timely manner, you'll be pleasantly surprised, i think, to see scores increase in a short time.
Cali,
Something else you can do in addition to what George recommends is as follows....
Call your credit card companies and ask if they can raise your credit limits. Why is this important? One of the factors which impacts your credit scores are your balances in relation to your limits. It is best to have your balance at less than half of your limit. You can achieve this by paying down your balance as George suggests....and/or you can also have your limits raised which would help achieve the same goal.
This is just a short term fix to raise your scores. Ultimately, you need to pay off your debts.
Something else you can do in addition to what George recommends is as follows....
Call your credit card companies and ask if they can raise your credit limits. Why is this important? One of the factors which impacts your credit scores are your balances in relation to your limits. It is best to have your balance at less than half of your limit. You can achieve this by paying down your balance as George suggests....and/or you can also have your limits raised which would help achieve the same goal.
This is just a short term fix to raise your scores. Ultimately, you need to pay off your debts.
actually, the optimum ratio of balance to credit limit is one-third (33%), but i agree with you eric about asking to increase limits. in this environment, it seems a tad bit unlikely, but there's no risk in asking.
me oh my...it makes one wonder if the same person is masquerading as two or three. i kind of hope that's the case; otherwise, there's a whole group of them.
i'm getting kinda scared at this point.
i'm getting kinda scared at this point.
Yes getting ur credit increased would be nice for calipartners... But in an economy like this it is very much hard, CC companys are more likely to decrease your limits if you pay them off in whole or a huge chunk of your debt at one time. But yes other then that i agree with eric1 and george.