Loans

For you the only way will be patience, because you have so many negatives on your credit with no positive credit history. You should apply for a secured credit card, or department store credit(which might be easier to obtain)if you're seriously ready to start cleaning up your credit. Remember to be on time All the time, and after a while your score will go up because you are showing you are now more responsible with debt than you were in the past. Remember, with a credit card keep your spending low(below 35%)so it doesn't look like you're living on your credit cards. Good Luck! PS be patient, and don't lose hope!

If you pay off the collection accounts in full many(if not all) the collection agencies will automatically remove the account from your credit report. If you don't have the money to pay off the collection accounts then try to settle with the collection agencies for $0.50 on the dollar and if you still need time to pay them off then offer to pay a certain amount monthly until the debt is settled. Once the debt has been settled and you have received confirmation of a zero balance remaining then pull a copy of you credit report (from all three CRA's) and if they are still remaining then dispute the collection accounts saying they are not your accounts. Also, dispute the car loan charge off saying you need an update on this account because it has never been late and the negative marks are preventing you from taking on new credit. You have a 50/50 chance that they won't respond to the CRA's and it will be deleted from your reports. The best time to dispute negative items on your credit reports is mid-November and Dec. 1st while most companies are preparing for the holidays or end of the year reports. Be patient because you may have to dispute the items several times before they fall off. Good luck.

Your score can drop because of various actions. Sometimes applying for a car loans with several lenders in a short period may place a credit score at a higher risk of dropping. This type of inquiry is known as a hard inquiry. A hard inquiry can impact your credit report and score for approximately two years.

Elaborating on the below answer, yes possibly initially for a month or two; just the length of time it would take for the credit card to report a zero balance to offset the "installment" loan (signature loan). Installment loans are looked upon more favorably than revolving debt of a credit card. Suggestion, though, if you have had the credit card opened for quite some time, I would not recommend closing it. Accounts that are open the longest and have the lowest balances help your score rating more favorably than your closing it altogether. Initially yes, it could.

It can, but is unlikely. Credit scores are roughly determined in the following way: 35% is payment history-meaning specifically what has taken place on all accounts in the last 12 months. 30% is amounts that are owed. 15% is the length of your existing (open) credit history. 10% is the types of credit used. 10% is new credit. So, paying a lump sum on your car loan MAY bring your overall debt ratio down, but paying down any revolving debt under 30% of whatever you have available to you (the credit limits) may positively affect your score more. The best way to improve your scores are to limit inquires, use but manage revolving accounts, keeping the balances proportionately low to available credit, avoiding new accounts, and ALWAYS paying your bills on time.

YES!

When you finance a car loan, you are NOT buying a car. You are BORROWING MONEY "secured" by an automobile.

If anything happens to that vehicle, wreck, getting stolen or repossession (whether voluntary or involuntary); You are still liable for the amount of money you financed. This is why banks and other auto financers make you keep the vehicle insured during the term of the loan.

The financer may auction the car for a portion of the remaining balance. If that is done, you are still liable the deficiency balance (whatever is leftover of the original loan). It will show as a "charge off, repossession" on your credit for seven years from the date of last activity.

A foreclosure will show on your credit for seven years from the date of last activity.

The federal statue of limitations is also seven years for the legal notice of foreclosure in the public records portion of your credit report.

There may be other state laws which extend this statue of limitations. The Fair Credit Reporting Act is worded "...whichever is longer..."

If I understand the question correctly, the answer is that they may be using different versions of the FICO software. The FICO score you get from myfico.com and the FICO score that a mortgage lender comes up with may be different, because Fair Isaac periodically updates the way they come up with the scores. Upgrading to the new FICO software can be expensive for lenders, so sometimes they don't do it. So they come up with a different score because they are using an older model. Since presumably the model is updated to make it more predictive, it means the lender's score is more likely to be wrong. As far as I know, however, the lender will continue to use its own score, and there is nothing you can do about this.

You will need to get a judgment in court for the bureaus to even begin to possibly care.

You can send a letter of request to the lender. Asking them to notify the CRA that your debt has been paid, and they request it be removed from your file. You may also write the CRA personally, giving them the necessary information.

There is no way to know for sure. Credit scores are calculated on ALL the information in your credit report when a score is requested. Even gueses as to what will happen...are emphirical and based on theories and evidence of scoring changes in the past. They may or may not reflect what will happen in your particular case.

35% of the score is based on payment (and account) history, specifically what has happened in the last 12 months.

30% is based on outstanding debt. Your (now paid) installmentloan MAY have an impact here.

15% is based on the length of time you have had credit. The longer the better.

10% is based on the number of inquiries into your credit report.

10% is based on the types of credit you have.

You could buy your score and let us know; but the information would only apply to your specific situation and would change if you got another score next month.

Yes, a co-borrower is liable and responsible for a joint debt.

Understanding the process may help. When you finance a vehicle, you are not "buying a car". You are borrowing money that is secured by a car. This is why the creditor insists that you have insurance during the term of the loan. They know that consumers don't understand this concept and that if the car gets wrecked or stolen they will not want to repay the loan.

Giving back the car would cause the account to be notated as a "voluntary repossession". The vehicle might be sold at auction and any remaining balance on the loan would be shown on your credit report as a charge off or collection account. This is a significant derogatory entry on a consumers credit report. You should avoid this, as it may hinder you from getting another vehicle loan or other credit in the future. See if you can sell the car yourself and pay off the balance of the loan. Contact the creditor and inform them of the situation, see if they will allow you to postpone payments, (with no derogatory information showing on your credit bureau file) while you attempt to sell the car.

A company would not change an account number or an amount owed, in order to place it on the consumer's CR. They would not risk being sued for an illegal transaction. As an aside, the amount of paperwork would be costly and pointless. Either it is a mistake, which they should be made aware of by the consumer. Or it is another account that the consumer has defaulted on. Or it is identity theft, and it should be followed up on immmediately.

The starting point of your score has little to do with credit repair; nor does the age of accounts. The date on collections that has the most affect on your score is the date the collection was updated on the bureau.

You would still benefit by going through the credit repair process, although depending on the specifics of your particular file, the results you get may not be optimal.

Another aspect that is important would be for you to have ongoing positive credit to offset these derogatory items. A lot of consumers think, "I have some bad credit, so it doesn't matter...". They couldn't be more mistaken. Credit scores are calculations based on ALL the information in your credit report. So having positive information is very important to add into the mix along with your repo and collection accounts.

Maybe yes, maybe no. There is not enough information here to answer your question. Your credit scores takes into account ALL the information in your credit report. So anything added or deleted would cause a change. Whether that change helped or hurt yourr score would depend on the info that remained.

A foreclosure will cause a significant decrease in your credit score. The entry will count against you once in the "trade lines", which is the part of your credit report that contain information about your accounts. It will show again in the public record portion, once the legal action of foreclosure is actually filed. The legal entry has its own statute of limitations which may extend beyond what the trade line will. The hit to your score for these double entries are calculated based on their reporting/filing date. History accounts for 35% of the score. So two significant hits in one 12 month time period would add up to a huge deduction. In addition to the computation on your credit score; lenders also look at the details of your credit as well. No mortgage lender is going to look favorably on a foreclosure, no matter what the details.

You need to find out and tell us whether or not your utility company(s) report to the credit bureaus. Some do normally, others only report when you pay late, others only report when you get turned over to collection, others never report. There is no way to know which category your specific utility companies fall into.

You have to have credit in order to have a credit history and a credit score. Every consumer needs at least one installment account and two revolving accounts that are managed properly for optimal points during the calculation that produces a credit score. It can be harder to get the credit you need, such as a mortgage loan, with no credit history than when a borrower has bad credit. Also, if a consumer has bad credit; positive, ongoing,accounts will offset the negative information.

You can qualify for 100% financing-- see a broker to find you the best subprime programs available for just your scenario...you can even get pretty low rates considering the score is not considered prime or A paper.

I am in the process of looking for a mortgage, but haven't ventured out there yet...I have a current credit score of 604 and I make $96k a year. I do have a charge-off though, and another 90 late...Is there hope for me in the near future?

Yes.

If you get a loan, pay off credit cards and keep the loan payments current until it is paid off. Your CR will be pretty darn good.

You can get a home loan with negative items on your credit report. Provided that most items are paid off and those that aren't have payment agreements with the collection agency. As long as your credit isn't too terrible, you can in most cases receive a home loan. But, you will pay for it with a higher interest rate.

If you have a history of payments made on time and lived up to the agreement..you betcha!

We paid off our mortgage 5 years ago and our credit score has decreased according to the credit bureaus this is due to the fact that we do not have a mortgage. The longer we go without a mortgage (or car loan) the lower our credit score goes. That is because the credit score is based on available credit against what you owe. But having no mortgage is a huge plus when it comes to making a large purchase because what you owe based on your income will be a lower percentage.

Yes, both accounts can show on your credit report and this is typical.

The first listing should show the history while the account was with the original creditor, including the charged off notation, a zero balance and some statement indicating that it was sold or transferred.

The second listing should show the dates relating to that purchase or transfer and the current balance.

The date of last activity should remain consistant on both accounts. This is the date you last paid on the account immediately prior to it becoming delinquent. This date triggers the (7 year plus 180 days) countdown for how long both listings are supposed to show on your credit report.

If you get sued over this debt and a judgment is granted against you, that would constitute a third listing of this same account. A judgment would be in the "public records" portion of your credit report. It would have its' own beginning date and 7 year reporting time period.

After the foreclosure is finalized and the property has reverted back to the lender. The original mortgage loan account shows in the "credit" portion of your credit report. The industry term for its' appearance is "tradeline". Ordinarly, mortgage loans, like other types of trade lines, remain with the original creditor for 180 days after they become delinquent. This is a standard amount of time and may vary according to your specific contract. After 180 days of not being paid, creditors normally take action. If the account is for a vehicle loan, an order for repossession is put into effect; if the account is a credit card, it is "charged off" or sold/transferred to collections (either in-house or outside collection agency); if the account is a mortgage loan, foreclosure proceedings are begun. This notation is then placed on the tradeline. A foreclosure, once filed, is a legal action. A separate listing of the legal filing then gets reported in the "public records" portion of your credit report. It shows the date the legal action was filed, has a separate period of time (commencing on the filing date)for how long it can show on your credit report and now needs a disposition. So the answer to your question is that a foreclosure notation may show twice on your credit report in different areas, both when proceedings have begun and after the foreclosure has been granted.

The notice of foreclosure will show as soon as the process begins. This will show in the area of the usual tradelines where the lender is listed. When the foreclosure is finalized, there will be a paid date showing on the record. There will not be any notice in the Public Records section since it is not a court record.

It really depends on the lender. But, probably not. Most lenders prefer a score of at least 712. Any collection accounts regardless of the time frame, portrays the consumer as a "bad risk." It also matters what your collection accounts are. Auto loans weigh collections differently than credit card or home loans. If you had a collection or late pay history on a car, for instance, your FICO score might be substantially lower than 703 from an auto lenders perspective.