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Credit Repair Help

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Subject: Credit Repair Help
 
 Posted on Wed Jun 04, 2008 3:57 am  
I am new to the site. We are going to be trying to get a home loan in around a year. My fico sits at 564 and hubby at 616. There are a lot of terms and things I am not understanding here. Pay for delete, dispute letters, etc. I am wondering how all this works and when to use them. Is there a site or an area that I can read about the tactics for credit repair and when to use them in what situations.

Thank you for your help.
 
CMBV22

CMBV22

Joined: 08 May 2008
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Posts: 378



4034 Magic Points
 
 Posted on Wed Jun 04, 2008 5:13 am  
basically, what allot of ppl including myself do to improve our credit is the debt validation process.

This is where we force the Collections Agents *CAs* to prove to us that the debt they claim you owe is yours and they have a right to collect it. Thats a very quick answer and I encourage you to ready the FCRA so that you are well versed in your rights.

Now, you will also see that ppl will offer CAs a settlement during this process. I generally offer 25-50% of the listed amount depending on the age, type and amount of alleged debt. When we send these letters we send the with a Pay For Delete *PFD*clause, That means the CA has to send a letter promising to remove their negative listing from your Credit Report *CR* if you pay them the agreed amount. You will also see ppl refering to the SOL or, statue of limitations on the debt in question. Basically, each state set an amount of time that CAs have to sue you over various types of debt. YOu should read your states laws on collections and SOLs along with the FCRA. Once you have read up on these things you will know what to do with your accounts
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Pesonalized credit repair advice in the forum:

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Mary

Mary

Joined: 06 Jul 2006
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9261 Magic Points
 
 Posted on Wed Jun 04, 2008 5:33 am  
Debt validation letters are sent to the CAs to validate your debt that they are claiming. If they can't validate your debt, they must remove their listing from your credit report as a result of which your score will increase. You can also sent a dispute letter to the CRAs if the CAs do not respond to your letter. Now if they can validate your debt, your can come to a debt settlement process with your CA where you can ask the CA that you will pay a certain percentage of your debt say 50%, but the CA must delete their listing from your credit report after the payment. This is called Pay for deletion. If the CA agrees to the PFD, the moment you pay the negotiated amount, the debt gets deleted from your credit report and your credit score increases.
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anthony

anthony

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12662 Magic Points
 
 Posted on Wed Jun 04, 2008 5:38 am  
You said that your fico score is 564 and your hubby is at 616. I think that if you take the home loan now only in the name of your hubby, you will get a favorable interest rate on your loan. Since your score is below 600, as far as my knowledge goes, if you take the loan together, or if you show your score, the interest rate will be much more higher.
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Anthony Marx

A positive attitude is not achieved by turning a blind eye to the negative, but rather by responding to every situation in the most positive way possible.
You can also visit my blog
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CMBV22

CMBV22

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4034 Magic Points
 
 Posted on Wed Jun 04, 2008 7:35 am  
I had no idea you could even be considered for a home loan with a fico under 680! Back when My scores were around 580 I could only get a credit card with a 300 dollar limit, forget a house....
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Guest







 
 Posted on Wed Jun 04, 2008 1:19 pm  
Thank you for all the help. This is a big process to get your arms around. I have a good idea how to get started now. Do you send letters even if the debt is valid in hopes they can't prove it and it has to be removed?
 
CMBV22

CMBV22

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4034 Magic Points
 
 Posted on Thu Jun 05, 2008 12:32 am  
Yeah, I mainly use it as a way to break the ice with CAs. It really takes them down a notch and makes them a bit more agreeable to PFD offers. Also, it stops them from violating your rights under the FCRA since they know your well educated in it.
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Free sample letters,
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and quick credit repair tips.
Pesonalized credit repair advice in the forum:

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scott

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5011 Magic Points
 
 Posted on Sat Jun 07, 2008 12:15 pm  
I too think it is difficult to get a home loan below 680. Although it will be difficult for you to go to that level of credit score, I think your husband with a present score of 616 can try to increase his credit score by 30 to 40 points. But still it will not be very easy to get the loan.
Actually DV letters to CAs are sent mostly to come to an PFD agreement with the CA after they validate of your debt.
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SCOTT

Social security, bank account, and credit card numbers aren't just data. In the wrong hands they can wipe out someone's life savings, wreck their credit and cause financial ruin.
 
CMBV22

CMBV22

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4034 Magic Points
 
 Posted on Sun Jun 08, 2008 5:33 am  
Scott,
what kind of score do you think one needs for a car loan?
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scott

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5011 Magic Points
 
 Posted on Mon Jun 09, 2008 7:07 am  
If your credit score is above 680, you can be rest assured of getting a car loan at the most favorable rates. but if it falls below 680 the rate of interest will be much more higher. However it is just impossible to get a car loan below 580, I think.
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SCOTT

Social security, bank account, and credit card numbers aren't just data. In the wrong hands they can wipe out someone's life savings, wreck their credit and cause financial ruin.
 
Morningstar

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40 Magic Points
 
 Posted on Mon Jun 09, 2008 2:30 pm  
Code:
However it is just impossible to get a car loan below 580, I think.


Not impossible, just expensive.
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CMBV22

CMBV22

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4034 Magic Points
 
 Posted on Mon Jun 09, 2008 5:54 pm  
Ah, very good. Thank You
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Free sample letters,
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Pesonalized credit repair advice in the forum:

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creditcardwarehouseonline



Joined: 28 May 2008
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1180 Magic Points
 
 Posted on Mon Jun 09, 2008 6:09 pm  
Actually Scoot Capital One is pretty leasy to get a car loan with. I had a score of 540 and got approved for a loan of 30000. Of course you have to verify your income with them.
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CMBV22

CMBV22

Joined: 08 May 2008
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4034 Magic Points
 
 Posted on Tue Jun 10, 2008 1:56 am  
Really, not to be rude but, about how much income do you need for a cap 1 auto loan?
_________________
****************************
Free sample letters,
info on paying off payday loans,
and quick credit repair tips.
Pesonalized credit repair advice in the forum:

www.homecreditrepair.net

http://homecreditrepair.hqforums.net/
 
scott

scott

Joined: 28 Jun 2006
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Posts: 186



5011 Magic Points
 
 Posted on Tue Jun 10, 2008 10:35 am  
I am not sure whether you will get a auto loan based only on your income with a credit score of less than 580. If you even get a loan with such credit score, the rates will be astronomical.
_________________
SCOTT

Social security, bank account, and credit card numbers aren't just data. In the wrong hands they can wipe out someone's life savings, wreck their credit and cause financial ruin.
 
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