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clohman · Mar 26, 2007, 12:23 AM

I have contacted all my creditors listed on my 3 credit reports and settled my long past due accounts with all but 1 and will work on this 1 this month. Here's the deal - I am longing to be a home owner and my score is poor (535). I have made mistakes in my 40+ years and now ready to do right. I need to know how long will it take for my credit report to reflect my payoffs (I made the payments in February). I have sign up with My FICO and nothing has changed todate. I would also like to know if I can get my daughter to write a letter indicating she is paying the car note on the account that holds her as a co-signer (the child could not get a car in her name and I let my guard down and signed for the car) by the way I notice she paid the car so far in one year late 3-4 times.:rolleyes: Any feedback you can give me about when my credit report will reflect my payments would be a sign of relief for me.

Thanks,

clohman

ScottGem · Mar 26, 2007, 06:46 AM

You need to contact the bureaus to update their records.. Generally you are looking at at least 30-60 days.

Dr D · Mar 26, 2007, 01:41 PM

ScottGem is correct in the 30-60 day time frame. Derogatory items are very time sensitive. The less time since the date of last activity, the greater the negative effect on your score(s). It is possible to lower your score by paying off a collection or charge off that is 6 years old. Since you have paid these accounts off, the passage of time will help the scores. As for co-signing a loan, my advice is to NEVER co-sign, especially for close friends and relatives. In the future, have your daughter give you a money order or cashiers check made out to the creditor, showing her as the remitter. That way you will know that the payments are made on time. Make copies of the MO prior to mailing, to prove that she made the payments. If you can show the mortgage lender that she has made the payments ON TIME for the last 12 months, you stand a good chance of not having the debt counted against you in the ratios. Remember that credit once broken CAN be fixed. All it takes is effort on your part, and time.

LaurieZ · Mar 26, 2007, 02:07 PM

On any derogatory accounts where you have already acknowledged the account is yours, before making payments, contact the creditor by phone first and try to negotiate a settlement via an "offer in compromise-"-you work out a payment plan--then have them fax or mail you a copy of that letter on their letterhead which they must sign. In it, have them agree to delete that item from the credit bureaus upon final payment, and include a opy of that letter with the final payment. Make copies of everything you send and certified ret rec is always best.The deletion is worth more points than marking an account Paid as Agreed or Paid as settled! Don't let them tell you they can't do it--if they report it, they can delete it.

clohman · Mar 27, 2007, 01:39 PM

I would like to thank everyone for answering my question. I met with the banker yesterday and she asked me to call the finance company and arrangements to have one month deferred and don't tell my daughter, so this way she will be paying a month ahead. I also contacted Tranunion to dispute the two account that are paid in full. They were very nice and told me what to do and I plan to sneak into to work tomorrow (on vacation this week) and fax the information to them. The banker is willing to work with me and I have a big smile on my face and God in my heart.

alkalineangel · Mar 27, 2007, 01:57 PM

On the note about trying to buy a house, you can still buy with poor credit score and get a good rate. You can either do a FHA loan (which is not as bad as it used to be, as the inspections are no longer required) or, you can find a mortgage company that provides manual underwriting... just a tip. Good luck!

clohman · Mar 27, 2007, 02:40 PM

alkalineangel - Thank you for your reply. I do have Harris Bank working with me until the very end purchasing my home. I was feeling good about all this until a phone call a few minutes ago - yes, a bill collector. I need to go surf the net because I just felt like I was being harassed about a $2XX.xx bill from Sprint.

Dr D · Mar 27, 2007, 06:46 PM

It sounds like you are on the right track. Follow the advice of your Loan Officer if you have faith in her knowledge and integrity. I hope that it all works out. I didn't realize that you were in the purchase process already, so some of my suggestions were long term solutions. If the bank offers you a sub-prime loan that you can't understand, or if it has a pre-payment penalty, I would pass. Wishing you the best.