i have lots of pety debt, with collectors after me.... why dont I have bad credit???

Question

I went to the bank yesterday with an attemp to get a home loan ( have a cosigner) when the bank puled up my info to get my fica score, they said i didnt have any credit at all...... I have a crap load of collectors after me for pety little things. nothing over 1000, actually i think the highest is 600, maybe more by now due to interest. only about the bigger half are medical, why are they not going against my score? Is this going to be a probelm for me later, Im trying to find a debt consolidater who will take low monthly payments due to my financial situation..... (buying a house for cheap.....froma family friend..too good of a deal to pass up) but i do want to clear my name and build my credit. I know this takes time but I feel like its anissue now....any advice about the credit deal would be greatly appreciated. thanks in advance...

please not criticizing answers, i have had enough of that from the bank and my fiancees mom.......... please just advice

Answer 1

Not giving links for more info is gunna kill me....
but seriously....
1) not all creditors report to credit companies
2) if you are paying on them at all, it doesnt look bad
3) most mortgagers understand/forgive a certain amount of medical and other bills
4) there is a HUGE difference in unsecured (credit card, hospital debt, etc) bills & secured (auto & home loans) debt.
5) if this deal is as good as it sounds, the bank knows it. It knows that you are borrowing less than the home is worth so even if you DONT pay, they can repo, sell, & get their $$$ back.

to make sure your credit score keeps increasing
1) ALWAYS pay your mortgage (and any other set debts) on time
2) do not charge more than 1/3-1/2 of your available credit on credit cards
3) pay off your credit cards one at a time, starting with the one with the highest interest--then--when they are paid off--rotate through them to use to purchase gas and other necessities--go online immediately and pay for those purchases--
4) either take out a loan to pay off all of the outstandign debt OR set up payment schedules with all of teh companies and stick to them!!!

Later... it may ne a serious problem...

Answer 2

If you dont have any of that on your credit, why are you making a big deal out of it.
Buy your house with your cosigner and worry about the tiny bills later.
$600 bucks is a very tiny amount that could be paid off with in the year with tiny payments....if they are all that size, why not set aside $100.00 a month to pay them.
You could take on a second job or sell stuff on ebay to come up with that extra $100 bucks.
Imagine if you paid off the $50 bucks each month toward the $600 bill, then the other $50 to the rest of the bills...maybe 10 to each. after the first $600 is paid off you use that 'extra' $50 to pay off the rest.

YOu can do this but dont let that stand in the way of your opportunity to buy your house.
also since the home is being sold to you by a family friend, why not ask them if they can finance you

Answer 3

How many loans and credit cards have you had in the past? You have to first establish a credit history! In your credit score the amount of debt you have, your payment history, and the length of time you have had these loans make up 80% of your score.

I guess you could try to take out an unsecured personal loan to pay off the collectors. Then you can make the payments on time, and add extra to the payments to pay more of the principal; since personal loans have high interest rates. This would be a start.

After that, it would be easier for you to obtain more credit.

I have a coworker who always paid cash for whatever he wanted to buy. He knew he had no credit. So, when he went to buy a truck, he took out an installment loan to purchase the turck. In a span of 5 months, he had the truck paid off, since he already had the money saved to buy the truck outright.

Answer 4

Most companies are not going to get into legal hassle with you over a debt of less than $1,000. Small debt collection agencies are probably not going to bother paying to report you to the major credit reference agencies. They have to pay a fee to record information about you, and why should they do that over such a small amount?

So if the bank is not pulling up negative information about you, that's great. The bank also won't care about medical bills, as they are so common in the US.

Now the problem is you have no credit. It is unlikely that you are going to get a home loan with no credit history. You are also unlikely to get a consolidation loan. When you get that kind of loan the financial institution is going to ask what it is for. When you explain it is to pay off a bunch of debt, they are going to realize that they are suddenly taking liability for all your debt. Your credit history doesn't exist, the only credit you have is bad credit and debt, yet you are asking a company to risk you not paying them, like you haven't paid a bunch of other people, for all your debt. Any company who does this has to consider you a high risk and for that you are going to pay a monster interest rate, if they will even accept that risk.

Answer 5

You wont visit penal complex, whether that is going to destroy your credit and collect pastime previous concept. If this happens you would be in debt for something of your existence and could under no circumstances have the means to purchase a house, motor vehicle, and so on. detect a debt administration company who will help you positioned up a clever charge plan. My husband had to do this and it particularly is extremely efficient. in case you do no longer, you would be apologetic approximately it

Answer 6

dont worry my friend,
i hope this will help u...........