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- November 19, 2011 at 12:37 am #378210
My husband and I are trying to get a house in the next 3 months, our mid scores are around 590 and need to be 640 or above. My husband does not have any open lines of credit which won’t help his score and I have a credit card that is $ 350 on a $ 500 balance. Which would be best to raise his and my scores:
A personal loan for $ 350 to pay off my card (which is already closed) OR pay my card to $ 200 or less and keep making payments, then open a card for him and use $ 20 a month, paid off each month?
He had a card that he was using a few years ago … but we closed it, so I guess he is not generating any more scores!
* actually, we do have $ 350 to put towards the card, but that money is actually going towards a conference we are attending, so we have been paying larger amounts towards the card and will pay it in full after June when we return from the conference. It is more important to attend the conference than to get a house before then…but we wanted to start planning in a few months.
– maybe ask before you quip!
My husband has credit, 1 year ago he had no scores register so they told us to get a card, we did and used it then closed it when we were no longer looking for a house-forgetting it would stop generating scores. Since he has no one reporting, his scores are stopped at 699/599/578. I was told he needed a card/line of credit for another 2-3 months so he would again generate scores.
This advice is all different from what my lender suggested, and she said in about 3 months things should be fine (A credit score can change 50-100 points in 3 months depending on MANY circumstances)
I think I’ll just go ask her! Thanks though
The lender was saying that 640 is the min. It is for a FHA loan, but the rate is locked regardless of the score because of the program we are going to use. I agree that waiting 12 months would be great, we are going to be saving money as we go. Right now, we are putting $ 350 a month towards the conference we are attending in June, so it is not that we don’t have the money-it’s that I am not going to worry about paying a card for the sake of a score and be short the $ 300 we needed to get there LOL.
We want to START the process in 3 months or so, not BUY in 3 months. I SIMPLY wanted to know what we should do before them, my hubby get a personal loan, or a credit card. MY card will be paid below $ 200 next month, then zero when we return from the conference.
-And I don’t feel that people should only buy a house if they have $ 300 extra just laying around every month, most people would be stuck renting forever!
* oh, and yes, adding a line of credit starts counting on your score as soon as the month ends and things are reported. My husband’s last credit card changed his score within 2 months…
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