###CHARLES OR (WHOMEVER) I NEED SOME ADVICE###

[Mr.ivyleague]

Hello everyone i have a couple of questions about my credit scores. My wife and my income is about 130k (combined) a year.Shes had her job for 3 years Ive been in my job since august so in september when we build it would be a year ive been at my employer. We wanna get a house real soon (september)we're currently renting paying 1400 a month. we"re both 25yrs old Im going to pay off all my debts(this month) but after that what do i do to raise these scores ..NO Credit card companies will offer me credit ..and ive hurt myself with 12 inquires trying to get one to build good credit. So i would really appreciate any help ... I can get approved for a new car its about 45k and the dealer says it will help my credit scores because ill re establish good payment history (hes probably trying to get me to buy a car)so what do you guys think?lastly one of my credit cards says "NOT ON RECORD"!!!!??? what do you suggest i do to set myself up to be able to purchase a home .Im going to go through VA (my wife has this option) or we can go through a regular loan. We want to build a house its about 350k(is that to much???) and we have about 35k in savings right now ..we save about 4000 a month so i could easily put down 40 to 45.whats my best bet to get ready for a mortgage

EQUIFAX= 536

accounts 16

accounts with balances 1

number of accounts negative 3

total balances on all accounts 29,438 (car loan)weve been late off and on

Now the only problems with experian are 2 collections 1#sprints pcs balance 117.00 and number#2 att wireless amount 919.00 I plan onpaying these off

Experian=574

accounts 14

accounts with balances 1

number of accounts negative 4

total balances on all accounts 29,438 (car loan)weve been late off and on

Now the only problems are 2 cell phone bills 1313.00 and another 919.00

I have 2 bounced checks on my credit from instacheck both listed as paid and charged off and another credit card charged off and it says transfered to another office 1400.00

Transunion=502

accounts 12

accounts with balances 1

number of accounts negative 3

total balances on all accounts 29,438 (car loan)weve been late off and on

again att cellphone 950 and a charged off credit card 1400.00

_________________

[firstsource]

I would direct you to the credit repair part of the forum, to find out how best to pay off these collections, I think that if you don't negotiate the payoff, that your scores may go down instead of up, when you take care of these. I know that it is not logical, but the Date of Last Activity kicks in.

Most lenders want a 2 year work/job history, so you will need to provide that information. If there is a job gap, due to school, being laid off etc, they will want to know why.

Secondly, There are some credit cards that will give you a card. They are expensive for fees & rates, but they are a good starting poing. I can see one flashing on this site, so I would start there. Then I think Orchard Bank, Aspire Card, Capital One may have a card for you.

My feeling is that you can work to build your scores up to the point of being at the 550 mid range, and there you can get a 95% LTV loan. Once your collections are paid off, you may qualify for a VA loan also.

Now, not what you asked but:

One suggestion I am going to make to you is to consider being more conservative on your new car purchase and your first home purchase. See what you qualify for with only one income. Then if something should happen to where your family temporarily has 1 person working, you are not in such a pinch. Take that extra money and put it in a stock account/mutual fund, so that in a short 30 years you have a nice nest egg to work from. Or invest in purchasing rental homes etc. The list is endless, and this is the time of your life where you should be getting your assets built up.

Charles

[amortgageman]

Now, not what you asked but:

One suggestion I am going to make to you is to consider being more conservative on your new car purchase and your first home purchase. See what you qualify for with only one income. Then if something should happen to where your family temporarily has 1 person working, you are not in such a pinch. Take that extra money and put it in a stock account/mutual fund, so that in a short 30 years you have a nice nest egg to work from. Or invest in purchasing rental homes etc. The list is endless, and this is the time of your life where you should be getting your assets built up.

Wise man once say, "He who contributes to savings at a regular savings rate from age 25 to age 30 and STOPS, still has more money at 65 than he who starts at age 30 and contributes same monthly amount until age 65."

For that very reason, I would consider all options. For age twenty five, you are doing fairly well, and careful planning will keep you progressing in a positive manner, but the ultimate decision will be yours. As Charles already alluded to, lay off that car purchase for now, and make a big picture of your financial plan.

1) Your job history is a stumbling block right now, unless your previous employment is in a related field. However, if you had been attending school and you are just now joining the work force in that field, then your education will count towards the job history requirements.

If this does not fit the scenario, then it will be important to know your wife's income for qualifying purposes.

2) Whose name is the car loan under. If it is in your name only, then this would not count against your wife's debt to income ratio.

3) VA guidelines do require that all collections, judgments, etc. be paid or payment arrangements made to the creditor. It would be best to go ahead and take care of these and be done with them. It will only help your credti picture and when you are ready to get a car loan, you will receive better rates on the car loan as well as your mortgage payment.

4) Use a conservative approach to your housing and do not go overboard. Realistically, you could have 29% of income for housing, and 41% overall debt ratio and still qualify for VA. VA loan limits have recently increased to $359,000, so your purchase amount will still keep you in the ballpark. If you should happen to exceed the amount, the difference will have to be cash or secondary financing.

At 6%, and a $350,000 purchase, you would be looking at a $2,100 mortgage payment, but you will need to add taxes and insurance to that amount to determine your total mortgage obligation.

Lastly, your late payments on the car loan may be an issue. How many thirty day lates do you have on this, and when was the last late payment? A letter of explanation may be required.