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Can someone guide me with mortgage application?  

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I first applied for a mortgage last May. The rep. at CitiBank said I had next to no credit, and a few bad items on my credit that I was not aware of and told me that my fico was 599, I needed at least 600, pay off those few bad items and a mortgage was mine when my score became 600 or above. Now it is January of the next year. Everything is paid off, I have no debt in my name, my score is now 591. The rep I got this time said that I could not have a morgage because I have no revolving or fixed debt. What the heck can I do? So, now I bought a $600 dresser at Lacks and they say they report monthly. How long till I should see improvement(all other things held constant) or do you think this will even make a difference? One more problem... I was a bachelor about 5 years ago, living with a friend, we moved to a new apt. in Oct. of 2000. At that same time another of our friends became single, I was in a serious relationship and moved in with my now wife, while the other friend took my place. The two other guys never signed a new lease, but the change of addresses for mail had been made, a different person was paying what would have been my portion of the rent with their personal check, etc.. The management knew what the situation was, it was just never put in writing. Now in the summer of 2004 theese guys moved out on bad terms with the management. Management sent a ballance of about $1500 to Retail Merchants Association and I find out they are saying half of it is mine, and will soon be added to my credit. All of this is happening in Texas what can I do?? All I want is to buy a house for me and my young family, and now with this crap going on my credit soon I dont even think I will even be able to rent anywhere anymore.
 

asked Mar 19, 2005 10:14 PM

Anonymous
Best Answer
5
best answer

Hi

Whenever a person applies for credit, a credit inquiry takes place and lowers the credit score by 5 points at a time. Following are the various ways to clean up the credit file:


  • Always try to minimize the credit inquiries.

  • Always pay the bills early.

  • Pay off the revolving credit each month.

  • It is advised not to close a credit account.

  • It is not recommended to switch credit cards to obtain the best rate.

  • Keep the oldest credit account in the credit report.

  • It is suggested not to have more than 2 major bank credit cards.

  • A person should not have more than 50% of the revolving credit limit


Regards
Roxette

answered May 31, 2005 05:35 PM

4 Answers

0

I just asked prof Calculas icon_biggrin.gif and he collected few graphs for you



See the Score Pie



Hope it helps
Tintin with prof calculus

answered Mar 20, 2005 05:42 AM

0

Hi,

Welcome to the forums, here are few useful links to understand the score related issues.

http://www.debtconsolidationcare.com/report-analysis.html
http://www.debtconsolidationcare.com/score.html
http://www.debtconsolidationcare.com/credit-score.html

Simon

answered Mar 20, 2005 06:12 AM

0

Thanks for the links Simon, they were useful. icon_smile.gif

- Chris Sampson
[Vikas: no links please , see tos]

answered Mar 28, 2005 06:39 PM

Anonymous
0


Quote:

Originally Posted by supertrooper2k2
I first applied for a mortgage last May. The rep. at CitiBank said I had next to no credit, and a few bad items on my credit that I was not aware of and told me that my fico was 599, I needed at least 600, pay off those few bad items and a mortgage was mine when my score became 600 or above. Now it is January of the next year. Everything is paid off, I have no debt in my name, my score is now 591. The rep I got this time said that I could not have a morgage because I have no revolving or fixed debt. What the heck can I do? So, now I bought a $600 dresser at Lacks and they say they report monthly. How long till I should see improvement(all other things held constant) or do you think this will even make a difference? One more problem... I was a bachelor about 5 years ago, living with a friend, we moved to a new apt. in Oct. of 2000. At that same time another of our friends became single, I was in a serious relationship and moved in with my now wife, while the other friend took my place. The two other guys never signed a new lease, but the change of addresses for mail had been made, a different person was paying what would have been my portion of the rent with their personal check, etc.. The management knew what the situation was, it was just never put in writing. Now in the summer of 2004 theese guys moved out on bad terms with the management. Management sent a ballance of about $1500 to Retail Merchants Association and I find out they are saying half of it is mine, and will soon be added to my credit. All of this is happening in Texas what can I do?? All I want is to buy a house for me and my young family, and now with this crap going on my credit soon I dont even think I will even be able to rent anywhere anymore.


Many people find themselves in your situation. they are trying to start a new life with their spouses; however, they are hindered by their poor credit. For you the road to recuperating your credit will not be easy. Rebuilding your credit is slow and it takes time.

As the chart shows, you can improve your credit rating by showing creditors that you are capable of carrying large balances. the $600 credit on the dresser is a step in the right direction but creditors want to see that other credit companies trust you with larger sums of money. For starters, credit in the low thousands of dollars. But if you are not capable of handling that amount of debt then you should look into other ways of raising your score.

Have you looked into a cosigner for your mortgage. Some companies do allow this so this could be a viable alternative for you to pay for the house that you want.

As for your other issue, you need to get your name off that lease immediately. Even though your management knows about the arrangement, that still doesn't help out your cause legally. Management really doesn't care who lives there. They just want their money every month however they could get it. Legally, your friends have left you out to dry.

If they do not pay the remaining bill, you should consider consulting with an attorney. Because if it comes down to a legal spat, then the management would have to come after you because your name is on the agreement. However, since there is evidence of a secondary agreement involving your friends and management(record of previous payments), you may be able to legally pressure your friends to pay the remaining bill.

You are trying to improve your credit. This is making matters worse. you need to resolve this before it really puts a dent in your credit report.

answered May 31, 2005 09:29 AM

1 

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