Question by navydave1974: Best way to fix credit?
Here is my situation. Me and the wife just applied for a our first mortgage. She has a credit score of 673 and I have the bad one of 584. I went ahead an pulled my reports from the 3 credit bureau’s. I have 5 accounts that are in collection or are delinquent. These are minor dollar amounts. Only like 44, 179, 144, 202 and 180. What is the best way to fix this without going to a specialist and paying the extra money. I have all the contact information of the creditors so I can contact them directly now. Should I call them (not mention I’m buying a house) and say I want to work with them to get this off my report? Then infer I don’t have much money but what is the least they will take to call it even? I have been much better with my money for the past 4 years with nothing negative. And once this is done, how long till I see it impact my credit score? Thanks for any help.
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Best answer:
Answer by abcdgoodall
fortunately the amounts are low. but unfortunately the changes can take some time. you have two options.
1. qualify for the house in your wife’s name. you can do “stated income” or “no doc” (if necessary) in just her name (so the debt ratio works out), and use her credit score to buy the home NOW.
2. or, work on your credit, wait some time, watch your scores and see when you’re over 650. remember, the MIDDLE of the three scores is what you will qualify under. so two of the three scores should be 650 or higher for a better deal.
to work on your credit, do it yourself. you don’t need to spend money to fix this. call the creditors, negotiate a settlement (less than full balance, but still considered paid in full). make sure to get the settlement agreement IN WRITING, and make sure it includes language that ensures they’ll label the debt “paid in full”, or even delete it from your credit altogether (and report it to ALL THE CREDIT BUREAUS IT SHOWS UP ON). keep copies of everything. after you pay them, follow up to get a receipt from them. then, you can go to www.annualcreditreport.com. this is where you can get a free copy of your credit report. order the credit reports and then go to each credit bureau website (experian.com, equifax.com, transunion.com) and file online disputes. they’ll track each item you dispute to the creditor and have it updated properly on your credit. watch it, and when its high enough, reapply for the mortgage. keep in mind, this can be a process that takes several months. good luck… its worth it once you own a house!
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