Filed under: Bad Credit Loan
Question: Anyone with any good ideas on obtaining mortgages, when the credit history is, well, poor, at best.
Bankruptcy 8 years ago, Chapter 13. Defaulted student loan. Couple of other small debts.
I presently have about 25K available, and would like to purchase in the 60K range.
Answer: Well I’m not a loan officer, but if you’ve got 25K to invest, I wouldn’t think there’d be a problem. I didn’t have great credit (several *old* medical bills, a 5K debt that I borrowed money to pay off, no “re-established credit) and I’m a single mom. I only paid 5% down on a $77,000 mortgage. It wasn’t easy, but I’ve been living in my house for almost 3 months, so it is possible. I guess it depends on where you live, and what lender you go with. It appears that you will be making a substantial downpayment, and I think that should balance the bad credit thing. But the best way to find out is to call some lenders. Banks and credit unions may have tighter standards. Look in the newspaper or phonebook and get the names of five lenders and find out what they have to offer. Here in Indy, there are several lenders whose slogan is “Bad credit, slow credit, no credit– no problem!” I’m not saying those are the kind of people you’ll have to deal with, but be aware that sometimes with less than perfect credit, you get less than perfect terms. But don’t let anyone jerk you around with some outrageous interest just because you have “bad” credit. You have cash, that should count for something.
January 1, 1970
Question: My wife & I are starting the process of buying a home.
We are right for the size of loan we’ll want (around $60,000): we make about $50,000/yr combined, have saving, investments, will make 15-20% down on the home. Her credit is spotless; mine not so much: a couple collection agency account (I can take care of those) and a big one – a government debt that has been charged off (in 1996 I think). It has/had balance of $6700.
I know the debt won’t help, but any idea as to how much it might hinder things? Would a cosigner help (Dad’s a retired doctor)? We’ll seek a 15-20 yr mortgage.
Answer: This one probably isn’t as bad as the former. If it’s no longer collectable, it isn’t a liability. While payment/credit history is certainly a factor, the presence of current DEBT and OBLIGATIONS is going to be a bigger factor.
Oddly enough a cosigner may help with the bad history issues, but DOESN’T seem to if you’ve got a lot of current DEBT outstanding.
January 1, 1970
Question: I am thinking about to buy a small house for myself, but the problem is i have a bad credit history, with late payment and delinquency on credit card accounts. Please give my some advices how to get around this problem and still can own a small house with reasonable loans. Any information regarding this issue will be greatly appreciated.
by the way, view my auction on ebay about low rate (2 cents/minute) calls:
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Answer: Fafa: I specialize in helping those who have credit problems to purchase a home. Please give me a call at your convenience, and I can discuss our program. If I am unavailable, please leave a message. Jim
Toll Free 888-896-9950 x2817
January 1, 1970
Question: >Does having bad credit make you a bad driver? Some auto insurers think >so.
Answer: not necessarily. I had some credit problems about ten years ago after a combo of divorce, lost job/lost insurance, and medical problems — very good credit to very bad credit back to very good agaion eventually– but i haven’t had accident or ticket of any kind for almost 30 years now. no relationship between the two. Yes. Haven’t you ever seen those 4-bank pileups on the freeway where a bad credit risk was trying to escape a long line of creditors?
January 1, 1970
Question: A bad credit personal loan can be aviled by people with bad credit. There are lenders who speciailze in making these loans available to them. Now it for sttandard loans in spite of their bad credit. They fail to realizethat a bad credit personal loan is the the fieldof bad credit is very huge. It very next day regarrdless of bad slow or no credit Loan. Get your Csah Advance immediately to.
http://www.ukloansreferral.com/personal-loans/a-bad-credit-personal-l…
Answer: How about this…the next time you scam someone out of their life savings or steal some 5 year old kids identity, how about using a little of that money to invest in a frigging SPELL CHECKER?
January 1, 1970
Question: My credit and that of my wife is pretty bad. No chance of getting =>approved for a credit card. We had a business to fail badly about three =>years ago after a hurricane…there were repossessions, evictions and =>trips through court and still outstanding judgements. = =>For the past three years, we have NO credit. No loans, no car payments, =>no rental payments reported to the bureaus, nothing at all good or bad =>(unless some of the creditors from three years ago are just getting =>around to reporting us). = =>We have another small biz now that is profitable. It will soon become =>necessary that we have a credit card to continue that business. = =>My question is: which of the secured or high-fee unsecured cards is the =>best? = =>We have an offer from Providian’s Aria…$500 limit for about $180 in =>fees. Pretty steep, but we need the card bad enough to do it. We will =>make the needed business purchases on the card, and pay balances =>monthly.
Answer: Try opening a broker account coming with a VISA or Master check card, if you can. They seems to be more eagerly giving out Check card to their customers. From there you can build up your credit I hope. Also try Gas Credit cards, Department store credit cards… etc.
If your business is in good shape and is longer than 3 years, you should get lots of offers by mails.
January 1, 1970
Question: Are you or somebody that you know experiencing credit problems? If your answer is yes, I think you will be very interested in our special offer. No longer will you have to live like a second class citizen due to a bad credit report. Bad credit is caused by a variety of reasons: Health, divorce, termination of employment, loss of income and dozens of other reasons. The bottom line is that bad credit can happen to anybody. There is no specific profile of a person with credit problems. It can happen to doctors, lawyers, accountants, the mail man, truck drivers, housekeepers and salesmen. As a matter of fact, one in three Americans live with some form of bad credit. Fortunately, the United States Government has passed many laws under the Fair Credit Reporting Act, all of which protect your rights as a consumer. Our manuals will show you how to use these Federal laws to your advantage and repair or obtain a new credit report.
Answer: Here’s the method, for free. First lie to the IRS and tell them you are an employer, and they will issue an Employer Identification Number (EIN) that is in the same format as an SSN. Next, when you are asked for an SSN, lie and give them the EIN, instead. Then, when you are arrested, tried and convicted for fraud, do Federal time. Simple, no?
January 1, 1970
Question: I have been passing by stores and kiosks that claim anyone who applies for a cellular phone will be approved. The claims also say they’ll get the phone without having to put down a deposit, even if they have been turned down before (due to bad credit, e.g.). I don’t believe the word prepay was ever mentioned in any of these … claims.
Am I missing something? Are these claims true? Is there fine print that may not be mentioned here?
Answer: Try Sprint. http://www.sprintpcs.com
They’ve been running various specials for people who sign up online, and the online account management is nice. If you’ve got bad credit, it’ll probably automatically direct you to their spending limit accounts when you apply. I’ve got one with a $200 limit, and no problems so far.
January 1, 1970
Question: I’m hoping some of may be able to share some of your knowledge and experiences pertaining to bad credit and obtaining home loans. First, a bit of background:
In 1995, before we were married, my wife enrolled in a debt management program at Consumer Credit Counseling Services (CCCS) in San Francisco to consolidate her overwhelming debt payments at the time (she was still in college and had racked up $15k in plastic debt over the years). She was on track to pay off all balances over a course of 5 years, but due to an inheritance she was able to pay off the entire balance by the end of 1997. As fortuitous as that was, CCCS was apparently remiss in making adequate final payments to all her creditors, and as a result, even though all balances are now zeroed out, there are several 30-day- and 60-day-late marks on her credit report, the last one occuring November 1997.
I have recently written a letter to CCCS apprising them of the situation, and am even considering legal action, but after some investigation into the legalese of the debt management plan, I doubt they can be held responsible. (And I even doubt if CCCS would be able to correct the blemishes even if they wanted to.) So I am assuming the worst, that the blemishes will stay on for the next several years.
We are (now) married, in our late 20s, my credit is fine, our income level and savings base is quite comfortable, and we are both steadily employed (teacher for 2 years, and software developer for 5 years). In short, if it weren’t for those blemishes, we’d be an ideal candidate for a lender to loan money to.
So, my question is, will those marks significantly affect our chances of obtaining a home loan in, say, 2 years? (Which would be 3 years after the last blemish.)
Sorry for the long essay. Any thoughts would be appreciated! Thank you.
Answer: Can your wife provide of payment and her contract with CCCS? She has a right to have a 100 word written explanation in her credit report regarding the late pays.
She needs to contact the credit reporting agencies with the explanation (send it certified).
In our area of the country you can get a loan for a home even after a bankruptcy if your credit has been clean for 18 months. So I would think that 3 years should be sufficient. Let your loan officer know about your situation so that he doesn’t think you’re hiding anything from him/her. Hopefully you can back up your explanation with your canceled checks.
January 1, 1970
Question: Once your friend gets them paid off, they drop : off his record in 3 years. So the faster he tightens his belt and goes : to work, the faster he’s out in the clear. : — You may want to check that period of time. I think it takes seven years for any bad credit to come off your report. The only recourse you have is to bargain with the company who reports and ask them to remove the black mark if you pay…
Answer: You’re right; most bad info. stays on credit records for seven years. But, as a matter of course, the credit card companies’ info. cycles every three years. A creditor can probably go back further if they want, but the ordinary credit report shows credit card & loan activity for the past three years, court activity for seven and only notes outright defaults (you never did pay, but they didn’t take you to court) beyond those limits. If you pay the credit cards off (albeit several years late) you should still be ok. That is, unless they’ve changed the credit reporting procedure in the last couple years.
One good way to look at it is to remember what a small fish you are to these big corps. Ultimately, if you come up with a plan to get out, and show yourself able and willing to fulfill the plan, they’ll be glad to not have to go after you. Of course, the BEST way is to not use credit cards AT ALL, at least not while you’re in school.
When I was in grad school, I lived on the things. Ten years ago, gave them up and haven’t yet encountered an emergency that couldn’t wait a few days until my next pay check (of course, I also live within my means.) Credit cards are not the key to the easy life; they’re the slippery slope to financial ruin.
January 1, 1970
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