Jump to content

Score Is 392...help


Recommended Posts

Hi i'm new to this site, i really like this fourm i have been lurking for a while. i have a question to ask. My credit score is making me loose sleep like you wouldn't believe.

Okay i have a subprime loan, got behind like crazy on payments. when i got the mortgage my score was 620 now my score is 392. I have been late with my mortgage and now i am back on track with that. i fell behind on my car payment and my j.c penny was charged off. I have four things on my credit report to pay and none are credit card bills. if i pay off all 4 of my charge-offs and get a secured credit card do you think i can get my score back up 620 in year and a half to two years. is that possible. i need get my mortgage turned into a fix mortgage. if anyone can answer these questions i'd greatly appreciate it. i'm tired of loosing sleep.

Thanks inadvance

Link to comment
Share on other sites

Yes, over time, with good payment history, your score can rebound.

How old are your charge offs? Try disputing them with the CRA and if they verify, try writing a sappy letter to the OC offering to settle if they remove the negative. Don't deal with Collection agencies.

Try writing a good will letter to your mortgage company....give them a good sappy cry story and maybe they will consider changing your negatives. It's worth a shot.

Try getting a secured loan through a credit union....or even a secured card will help a little. It will still take some time but you can do it.

You could also try talking to a broker about your score....maybe you could qualify for a FHA. If not, maybe he/she can offer some suggestions.

Good luck

Link to comment
Share on other sites

Yes, over time, with good payment history, your score can rebound.

How old are your charge offs? Try disputing them with the CRA and if they verify, try writing a sappy letter to the OC offering to settle if they remove the negative. Don't deal with Collection agencies.

Try writing a good will letter to your mortgage company....give them a good sappy cry story and maybe they will consider changing your negatives. It's worth a shot.

Try getting a secured loan through a credit union....or even a secured card will help a little. It will still take some time but you can do it.

You could also try talking to a broker about your score....maybe you could qualify for a FHA. If not, maybe he/she can offer some suggestions.

Good luck

THANKS, I really feel there is hope for me. I just didn't know what i doing when i got that ARM. I told the mortgage guy what i could pay and when i got to the tablw it was almost three hundred dollars more per month. But can you tell me CRA is. Thanks
Link to comment
Share on other sites

My mom is in the same boat--needs to refi before august- she signed for an ARM not understanding its a 5 year interest only- so many people have been taken advantage of when they are already in distress and cant think straight. But that quick fix turns into a nightmere when its all done. im trying to help her with all the good info on here we have made some progress. Just keep reading and applying the techniques on CIC and youre on the right path. good luck

Link to comment
Share on other sites

My mom is in the same boat--needs to refi before august- she signed for an ARM not understanding its a 5 year interest only- so many people have been taken advantage of when they are already in distress and cant think straight. But that quick fix turns into a nightmere when its all done. im trying to help her with all the good info on here we have made some progress. Just keep reading and applying the techniques on CIC and youre on the right path. good luck
Thank you for understanding. Thank goodness my mom is here for me. her rent is 1200.00 and she told me that she was not going to continue to pay someone else bills when her daughter needs her help so she's moving in with me. She don't want to see me loose my home. So i have been working extra and got the mortgage all caught up before she got there. So i'm feeling pretty good lately i just want to start working on these other four charge offs and keeping things paid on time. I know this nightmare won't last forever.
Link to comment
Share on other sites

sorry to hear about your misfortune DG. I am living proof that there is hope and you CAN turn around your credit and life. you have to make a COMMITMENT that you are going to do better and take a "by all means nessacary" you will improve things. do not default or be late ever again, now you see the seriuousness of it all. its not worth it to skip a minimum payment of 20 bucks or so, you have to be responsible and to put it bluntly, people who are not have low credit scores. that does NOT, repeat does NOT mean there are those who lose jobs unexpectadly, become ill, divorce, or other unforeseen hardships. so with that said, find out which side you are on and which applies to you and dont make the same mistakes twice. keep coming here and good luck!

  • Like 1
Link to comment
Share on other sites

  • 2 weeks later...

Good luck with your recovery. Try sending Debt validation letters, good will letters...search this site there are plenty of samples and tips to get you going.

As with any process, it will not be instant, but the reward is worth it. I am sure you have seen your mort. rate increase like it was on Crack but in 12-24 months of good behavior it will be back to norm, heck it might be even better.

Oh and stay away from plastic in the interim use only cash or DEBIT. Seriously, only CASH or Debit, not even checks. They can cause you to overdraft or your bank may cover the check and ask you to pay them to bring your account current. You do not want to recieve an unexpected bill.

One more thing.... for the crad you have not defaulted on but have high balences, call the issuer, let them know your situation and ask for a decrease in the APR%.

  • Like 1
Link to comment
Share on other sites

Thanks for all the encouraging responses. I'm feeling pretty good about this. I have my mortgage back on track, my mother is set to move in soon and i will be paying off my J.C.Penny card in March. After that i will have only 3 creditors to pay off and my credit report will be all paid off. i got two other accounts caught up and i just want to stay on track with them.

So things are already looking up. I've been broke but i'm staying current and hopefully in a few months the score will start to go up again. i never had any credit cards. That was one thing i knew not to get involved with. I only use my debit card or cash. One of my creditors knew i had never been late with them ( Citibank ) and always made my payments on time, so even with the 392 credit score they refinanced me and lowered my payments. They said because i was a long time customer and they understood after i explained how i got in my jam. Things are looking good again for me, and just to think i was about to file bankruptcy a few months back. i thought that was the best thing to do becasue i felt so overwhelmed.

My sister told me to make that a last result. so i canceled the appointment to file bankruptcy and got out my credit report and got on the phone with my creditors. i know its a long process to get my scores back up but i'm up for the challenge.

  • Like 1
Link to comment
Share on other sites

Congrats! when I started off about a year ago my score was 450. I'm right around 600 right now but that is because I added a lot of credit and have used some of it. I peeked in dec at 701 :) So I am sure if I can do it, so can you ;)

WOW!!! Within a year and half you jumped into the 700's. now that's motivation for me. Congrats to you.

Link to comment
Share on other sites

yup, just to warn ya ahead of time. Sometimes CA's pull dirty tricks. I disputed a paid collection that was only on one report. They removed it. but then posted it to the other 2! It had not been on either prior to that.

So, be ready for a few set backs. but steady work will improve them. When you first start rebuilding your scores will yo-yo.

Link to comment
Share on other sites

Yes you can rebound your credit scores in a year with dilligent on-time payments and removal of derrogatories.

Unfortunately, that is only one component of getting refinanced. My mother worked in underwriting for years so I still have contacts in the industry. The other compnent is the lenders criteria...and right now that is the real hurdle. A conforming (meaning you have at least 10% equity) fixed rate refi with a decent rate right now is going to require a score over 680 -- whereas it was 640 before everything tanked. The best rates are going only to people with scores over 740 and at least 20% equity right now.

Lenders are skittish about underwriting at this point in time. They got burned badly even on so-called good loans. So they have increased their requirements.

All is not lost though. FHA requirements are not score driven. As long as you have no lates for 12 months and no bankruptcy for 3 years you should be able to get an FHA loan to get you out of the crummy variable rate loan you have. You will have to pay a mortgage insurance premium, but that is now a tax deductable expense as of this year.

Link to comment
Share on other sites

Good luck fixing your ARM. I have several friends that told the banks what they could afford with an ARM and of course, they went out and got WAY too much house. Then time came to pay the ACTUAL payment the house would cost and well, you now the rest...

Now they are in a pickle. Most have good credit and can refi but some are finding it's better to refi for whatever they can get now, then down the road do something more aggressive once they bring their credit back up.

Some people are picking up second jobs, asking the boss for a small raise and cutting back.

Our cable bill is almost $150 / month.

Our cell phones are almost $125 / month for 3 phones PLUS I have a personal phone that I pay $50 / month instead of the phone company.

We are going to scale back to get my credit fixed and paid and to put more money down on a car that we need/want.

All told, with not much effort - we can reduce our cable down $50, phones down $50, eating out only once every two weeks , another $50. We both have habits (mine is tobacco and coffee, hers is wine) - theres another $50 with very little effort really.

So we now have $200 extra per month - still have phones, cables, and our 'habits' - not cutting them out , just slimming their usage down.

My friends have sold cars, taken 2nd jobs, sold junk they had laying around etc to make things happen.

Just some ideas for you. I know when I was having issues paying rent after losing a job someone told me these tips and I wanted to smack them because I didn't HAVE cable, cell phones, eat out etc etc lol...so hopefully this won't sounds stupid to you. I know it's probably common sense but hopefully it will help some. A little here and a little there DOES add up...and eventually in years that house payment will look small to you AND you will have equity in your home! :)

GOOD LUCK!

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...