PrimeRisk

82 Contributions 415 People Helped Top Contributor

Member Since: June 2014

About Me: New to Credit Karma, but old to all of those banking and loan tricks that suck your account dry with fees and kill your credit score. I used to live with FICOs in the mid 600s, now I'm flying in the high 700s.

Most Helpful Contribution

What does my credit score need to be to purchase a home?

Dec 16, 2014
FICO Score of 620
Helpful to 95 out of 109 people

Generally speaking, mortgage lenders will require a minimum FICO score of 620 to be considered for a loan.  Keep in mind that that you will have 3 different FICO scores, one from each of the major reporting bureaus (TransUnion, Experian, and Equifax).  The lender likely uses only one of them to pull your score. 

Credit Karma does not provide you with a FICO score, they provide you with a TransUnion calculated score (along with Vantage and insurance scores).  The score provided by Credit Karma is a good barometer of how healthy your credit is, but that score will not match the FICO scoring.

As a rule of thumb, I have found that the Credit Karma scoring is a little bit more optimistic compared to FICO scores.

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what type of credit score is needed to get a home loan

Dec 19, 2014
FICO score of 620
Helpful to 31 out of 33 people

Generally speaking, mortgage lenders will require a minimum FICO score of 620 to be considered for a loan.  Keep in mind that that you will have 3 different FICO scores, one from each of the major reporting bureaus (TransUnion, Experian, and Equifax).  The lender likely uses only one of them to pull your score. 

Credit Karma does not provide you with a FICO score, they provide you with a TransUnion calculated score (along with Vantage and insurance scores).  The score provided by Credit Karma is a good barometer of how healthy your credit is, but that score will not match the FICO scoring.

As a rule of thumb, I have found that the Credit Karma scoring is a little bit more optimistic compared to FICO scores.

What does my credit score need to be to purchase a home?

Dec 16, 2014
FICO Score of 620
Helpful to 95 out of 109 people

Generally speaking, mortgage lenders will require a minimum FICO score of 620 to be considered for a loan.  Keep in mind that that you will have 3 different FICO scores, one from each of the major reporting bureaus (TransUnion, Experian, and Equifax).  The lender likely uses only one of them to pull your score. 

Credit Karma does not provide you with a FICO score, they provide you with a TransUnion calculated score (along with Vantage and insurance scores).  The score provided by Credit Karma is a good barometer of how healthy your credit is, but that score will not match the FICO scoring.

As a rule of thumb, I have found that the Credit Karma scoring is a little bit more optimistic compared to FICO scores.

I have a mortgage?

Jan 19, 2015
It depends...
Helpful to 11 out of 11 people

You said that this came up while Credit Karma was verifying your identity.  Sometimes the verification questions will ask questions about accounts that don't exist to ensure that you are who you say you are.  Look at the Full Credit Report inside of Credit Karma.  If the loan shows up there, then you do have a mortgage on your credit report.

If the mortgage account is showing up on your full credit report and you don't have a mortgage, you need to get copies of your full credit report direclty from the 3 credit reporting agencies (Experian, Equifax, and TransUnion).  The informaiton provided on those reports will allow you to dispute the records and provide additional information that will be useful in contacting the lender to see why it is on your account.

No credit card just owe bills that went into collections.

Sep 05, 2014
Get your information first
Helpful to 19 out of 21 people

First, make sure you’re dealing with a legitimate debt and collector.  Tell them that you are interested in resolving your debt equitably, but you need information first. 

Get this info:

·         Get the name of the person you are talking with

·         The name, address, telephone number, and fax number of the collection company

·         The name, address, telephone number, account number, and fax number of the original creditor

·         Get the total amount of the debt owed and the detail behind it (Amount, interest, late charges, fees, etc)

DO NOT admit the debt is legitimate or agree to any type of payment plan
 

Don’t agree to give them a bank account number or even acknowledge that the debt is legitimate.  Kind of like getting one of those photo speeding tickets…you may agree to make the payment, but don’t admit that it’s legit.  If you do, you may find that collector using those statements against you.  Just keep telling them that you are interested in resolving the situation.

Immediately you need to verify the debt.  You have a limited time to dispute the debt after first contact in writing, so don’t delay.  If you don’t request verification and/or dispute within 30 days, your options will be severely limited.  You need to send the request for verification and/or dispute of the debt in writing so you can prove you did it within the timeline.  Send it by a traceable method (I’d use USPS Priority mail, it’s cheap and provides proof of delivery).  At a minimum, this will hold up the collection until the verification is provided.  Often the debt has been sold with little information proving the debt and in this case will push the collector to offer a sweetheart deal to settle (like $.05 on the dollar) or may eliminate it altogether.  If they can’t provide the information on the debt at all, you can simply argue that you don’t owe the debt at all.

Final notes, make sure you do all of this in writing with the collector.  Tell them that you want to resolve the situation but you can’t do it over the phone and need everything to be communicated in mail.  (This will stem the collection calls)

How many years do you have to wait to apply for a home loan after you have had a bankruptcy?

Feb 12, 2015
Quite likely...
Helpful to 8 out of 8 people

Talk to your banker or mortgage broker and see what they can do for you.  Based on your score you can certainly get an approval, so it just comes down to your debt-to-income ratio and ability to pay.  You can get a loan after Chapter 7 bankruptcy and you do have to wait for awhile, but you appear to be beyond those limits.  Different loan types have different restrictions:

-For FHA or VA loans you must wait 2 years from the date of discharge

-For USDA loans you must wait 3 years from the date of discharge

-For Conventional loans you must wait 4 years from the date of discharge

...

Once these time periods have passed, anyone will then be able to apply for a mortgage, but you must still qualify for the mortgage loan.  That may be the tough part after a bankruptcy.

how long does a derogatory stays on your credit report,after closed as charge off or written off

Dec 29, 2014
7 years and 180 Days
Helpful to 8 out of 8 people

In general, derogatory items stay on your credit report for 7 years and 180 days (as per the 1996 Consumer Credit Reporting Reform Act) after the last negative activity on the account. 

There are some exceptions:

  • Bankruptcy - 10 years
  • Unpaid judgements or lawsuits - 7 years and 180 days at a minimum (commonly 7 years and 180 days after you clear the judgement)
  • Information reported because of a credit or life insurance application for over $150,000 - Indefinitely
  • Credit information provided for a job application where the salary is over $75,000/year - Indefinitely

Keep in mind that if you are required to report on any credit problems for a job or insurance application (over the stated limits) that the Credit Reporting Agencies can and will report back everything in your history ever, so you better be honest.  At the current time, I don't know if there is any way for a consumer to get a copy of a report that extends past the 10 year history.  Also, keep in mind that these restrictions are only for the Credit Reporting Agencies.  If you flubbed up your credit with a creditor over 10 years ago, your report may be clean, but the creditor doesn't have to forget or forgive and can legally hold your previous credit activity against you.

New site has less visibility of accounts that old one did. How is this an improvement?

Jan 23, 2015
Change is always hard...
Helpful to 7 out of 7 people

I agree, the new site design, while adding the Equifax report and score, does seem a bit harder to navigate.  The old format for summarizing your accounts was much more straight forward.  That said, it does still work with one exception.  I have a mortgage that Credit Karma doesn't have the ability to link the account.  In the old format, even though the online account conneciton wasn't there, the mortgage still showed up under the Loans area so I could see my whole financial picture.  Unfortunately, now that account only shows up in the pages of the credit reports.  That's a step backwards and hopefully they'll fix it.

Has anyone tried FICO indentity ultimate?

Dec 31, 2014
MyFICO: Buyer Beware
Helpful to 7 out of 7 people

I subscribed to services from MyFICO for over 10 years on their FICO Quarterly Monitoring with Identity Theft Protection.  The service gave me nothing but a false sense of security.  Their services failed miserably when over a 3 month period my credit profile was hit with 9 hard inquiries, 3 mortgages, and a car loan.  Their weekly monitoring e-mails continued to say that everything was clear with no changes to my credit.  When I called to complain about the failure of the service, I got no help and no resolution.

Search the net for reviews of MyFICO and I bet you'll think twice about paying for their services.

For the record, Credit Karma has always alerted me to any changes in my credit and while they don't provide Identity Theft Protection, you can buy it from a lot of places.

Good luck and buyer beware!

Why would an old paid off collection account, with a balance of $0, show as "open"?

Sep 10, 2014
Was the account closed?
Helpful to 7 out of 7 people

The account could still be open with the creditor or the creditor may just be lazy about updating the credit bureaus.  The upside is that with the negative being that old, it is having relatively little impact on your score and is adding to your average age of accounts, which helps your credit score.  Once the negatives fall off at the 7 year point, it will just be an account in good standing which also helps you.

At this point I don't think I'd touch it (such as disputing it with the credit bureau or contacting the creditor).  Leave it alone and let it die off of it's own accord.  You may want to pull all 3 of your major reports to see if it is showing up in the same way with all of the bureaus.  If you are relying on info from CK's TransUnion pull, it may just be an error on the TU report.

my score is about 580....what will be needed for approval?

Jan 20, 2015
Focus on your credit score...
Helpful to 35 out of 41 people

Generally speaking, mortgage lenders will require a minimum FICO score of 620 to be considered for a loan.  Keep in mind that that you will have 3 different FICO scores, one from each of the major reporting bureaus (TransUnion, Experian, and Equifax).  The lender likely uses only one of them to pull your score. 

Credit Karma does not provide you with a FICO score, they provide you with a TransUnion calculated score (along with Vantage and insurance scores).  The score provided by Credit Karma is a good barometer of how healthy your credit is, but that score will not match the FICO scoring.  As a rule of thumb, I have found that the Credit Karma scoring is a little bit more optimistic compared to FICO scores.

I would start by paying for an actual FICO score so you know where you stand.  Then you can start shopping around for a Mortgage Broker that will talk to you about your specific situation and let you know what possibilities are out there.    Be very wary of any company who wants money up front to review your credit and give you an assessment of whether or not you can qualify for a loan.  Run away from anyone that want thousands in advance and promise that they can finance anyone.  Be prepared that with a score under 620, if you qualify, you'll be facing much higer rates than the ones you see advertised on TV and in the paper.

Your best bet is to wait for a while and work on improving your credit score and saving more for the down payment.  Once you can pull a 620 FICO score, you will have a lot of lenders to choose from with more favorable rates.

Good luck!

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