2006-06-19 01:46:35 · 7 answers · asked by Tunasandwich 4 in Business & Finance ➔ Renting & Real Estate
It depends on the company who will be loaning you the money and how the process it. They might have you try to clean up the bad credit a little before they approve you. Thats what happend to me. My credit had some bad things on it and I had to fix them before we got approved. Your credit doesnt have to go back to perfect but you have to prove that you paid back your old debt. Otherwise the person with good credit might have to be the one who takes out the loan for the house without putting the other person on it.
2006-06-19 01:52:26 · answer #1 · answered by Anonymous · 4⤊ 0⤋
Being a former real estate agent and a former loan officer, bad credit can affect your ability to get a loan in a major way. (I also worked in the Bankruptcy department of a law firm.) Use the better credit as primary on the loan. In the meantime, whether bankruptcy or foreclosure, go to Orchard Bank, spend $300 and get a secured credit card. Charge gas on it, and pay it before it hits the end of the month. Do this 3 months in a row, and you'll have re-established a good pay history, which will not only affect your credit score in a positive way, but will also help you get qualified on a home. Also, get a copy of your credit report. Some loan companies will give you this, others won't. Look at what's showing up. Some things you can dispute, some things can be paid off because they are small (keep all proof of payments), and some things can be taken off if they are over 10 years old. When filing bankruptcy, get a secured credit card or other credit card prior to filing. Don't use it. Wait until AFTER the bankruptcy has been DISCHARGED (NOT DISMISSED), and then use it...ON TIME!!! Within 3 months, your credit will be good again. I gave this information to a relative, and that person now owns 10 rental properties plus her own home, AND two new cars. NEVER allow a credit card to go over 30 days. Pay it off PRIOR to the monthly interest being charged. If you charge something mid-month...pay it off before the end of the month. If you charge something on the 1st of last of the month, pay it off before the middle of next month. Interest on credit cards no only is difficult to get paid off, but a late payment really messes up your credit!!! Good luck
2006-06-19 08:56:29 · answer #2 · answered by godslovelyrose 2 · 0⤊ 0⤋
If the person with the good credit puts their name only on the loan application and it gets approved then it is fine. Some loan companies require both parties to be on the loan. Most do not. Try applying for the home loan using only the person with the good credit.
2006-06-19 08:50:29 · answer #3 · answered by jshepard17 5 · 0⤊ 0⤋
It does affect your ability but there is a way. Sometimes if you apply for a mortgage for a home the company will give it to you but in the contract all the back credit that the person owes will be payed right out of the loan. I hope that helped. I went through that myself. Thats what me and my husband had to do.
2006-06-19 08:53:18 · answer #4 · answered by bahayea 1 · 0⤊ 0⤋
It depends on how bad the poor credits history is, but if there was no delinquent student loans or bankruptcies, it will probably affect it by a higher interest rate. If it is really bad, you could be turned down by some banks.
2006-06-19 09:31:12 · answer #5 · answered by butrcupps 6 · 0⤊ 0⤋
depends on your state, which one of you makes the most money, and who has the bad credit
most states require both of you to be on the loan application, so they take in both of your scores, good+bad=ok, and that's the interest rate you get
good news is, make it through that first year of payments, then refinance. the person with the poor credit will have established much better credit, and you will get a much better rate
2006-06-19 08:51:39 · answer #6 · answered by paj 5 · 0⤊ 0⤋
I'm worrying about this, too.
2006-06-19 09:58:36 · answer #7 · answered by tertiahibernica 3 · 0⤊ 0⤋