My husband when his mother was alive got a credit card taken out, and it had her name as the primary and his name as the secondary. Everything he put onto it, he paid back but when she passed away, his father was suppose to pay the bill. We went to get a loan for a house, and his credit score had dropped 100 points because his father went three months without paying. When he called the company, the lady told him it had been turned over to collections. She told him to write a letter of appeal and they would try to handle the matter. What all should he include in this letter of appeal? Has anyone fixed a problem this way or are they just pulling his chain. Because of this whole situation, we were forced to get a five year loan at most at 200,000, but in five years his credit score will still be low because it takes seven years from the date in which the debt was settled to raise again. Should we focus on paying other debts we have like our credit card, will that raise our score?
2007-08-29 03:30:10 · 3 answers · asked by crymeariver 5 in Business & Finance ➔ Credit
Any help would be great. Please give me advice on what to do?
2007-08-29 03:30:34 · update #1
If his credit score is still at the amount it is now which was barely enough to get the loan, then what will they do, will they raise the rates? What can we do? Refinance, etc.
2007-08-29 03:32:11 · update #2
Whoever handled the Estate should have taken care of the Bill, write a letter to the credit bureaus asking them to
validate. A debt collector is not the original creditor, did they
original creditor charge it off? Are you in the USA? Have
www.creditinfocenter.com
2007-08-29 08:30:09 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Since hubby was a co-signer, that negative will stay. If it's still unpaid, they will come after him.
You can improve your credit score by paying down your credit cards. The debt to available credit limit ratio is a large part of your score. If it's over 50%, it kills your score. Try to stay below 30%.
The most important way to improve your score is a consistent, on time payment history.
2007-08-29 03:41:34 · answer #2 · answered by bdancer222 7 · 0⤊ 0⤋
Your not alone. Most people find out they have a problem with their credit score when they apply for a home loan. This happened to me and I found a solution that increased my score from 540 points to 746 in just a few months. I found out how to do this at http://www.your-credit-solution.com/creditsolutions.htm .
The best of luck!
2007-08-29 09:19:36 · answer #3 · answered by Anonymous · 0⤊ 0⤋