Bad Credit Rating

[missy_antha 0]

My fiance (He's the american citizen) had awful credit. About 4 different credit cards that he had maxed and had then just been paying the minimum payment. This had affected his credit rating so much that no one would give him credit.

18 months ago I lent him the money to pay back his debts approx $6000 so not a huge amount.

My credit in the UK is fantastic, I am a bank managers wet dream, however my fiancee and I decided that as he then got his dream job earlier this year, that I should move to the USA.

My question is that since he paid back those debts and has now been earning a good wage since April of this year why is his credit score still the same?

When I move over in January I would like us to buy a house but I'm worried whether we will be denied a mortgage. as I will have no Credit History and his is still rubbish. We have also been told that even if you pay all of your debts off they still effect your credit rating for the next 10 years!!!

His mother died a few months ago so he has $50,000 coming from her any day now, plus I own my house in London outright which is worth approx $550,000. I am going to rent that out which will give me a monthly income and sell it in a couple of years if we decide to stay in the USA. So we are quite well off but it seems that this low credit score will really effect our future plans.

Can anyone tell me if these bad debts will stay with him for 10 years and also perhaps recommend someone or somewhere that he can go and speak to, to try to sort his credit score out.

Any help that anyone can offer with this problem will be hugely appreciated.

[Mags 112]

I don't know about the USA but I know that bad credit stays on your rating in the UK for 6 years (regardless of good employment etc). So ten years for the USA doesn't sound too unrealistic.

Hope you get something sorted out.

(P.S. If you sold your house in the UK you could buy a house outright in the USA and therefore not have to worry about a mortgage... )

Edited November 23, 2006 by mags

[PlatyPius 5]

I don't know about the USA but I know that bad credit stays on your rating in the UK for 6 years (regardless of good employment etc). So ten years for the USA doesn't sound too unrealistic.

Hope you get something sorted out.

(P.S. If you sold your house in the UK you could buy a house outright in the USA and therefore not have to worry about a mortgage... )

"A" house? She could buy my entire block, the one north of it, and probably the one west of it, too.

lol

[Mags 112]

I don't know about the USA but I know that bad credit stays on your rating in the UK for 6 years (regardless of good employment etc). So ten years for the USA doesn't sound too unrealistic.

Hope you get something sorted out.

(P.S. If you sold your house in the UK you could buy a house outright in the USA and therefore not have to worry about a mortgage... )

"A" house? She could buy my entire block, the one north of it, and probably the one west of it, too.

lol

Well, all the houses but yours...cos you already own it outright anyhow.

[missy_antha 0]

I will probably do that in a couple of years when I know that I definitely want to stay in the States, but if I wanted to go back to the UK it would be impossible to get back on the housing ladder in London.

This way it's like my insurance policy and makes the big move not so scarey knowing we could come back if I hated it. Also it gives me an income each month even when I'm not working.

Do you think most men are much worse with money than women?

[payxibka 10,047]

My fiance (He's the american citizen) had awful credit. About 4 different credit cards that he had maxed and had then just been paying the minimum payment. This had affected his credit rating so much that no one would give him credit.

18 months ago I lent him the money to pay back his debts approx $6000 so not a huge amount.

My credit in the UK is fantastic, I am a bank managers wet dream, however my fiancee and I decided that as he then got his dream job earlier this year, that I should move to the USA.

My question is that since he paid back those debts and has now been earning a good wage since April of this year why is his credit score still the same?

When I move over in January I would like us to buy a house but I'm worried whether we will be denied a mortgage. as I will have no Credit History and his is still rubbish. We have also been told that even if you pay all of your debts off they still effect your credit rating for the next 10 years!!!

His mother died a few months ago so he has $50,000 coming from her any day now, plus I own my house in London outright which is worth approx $550,000. I am going to rent that out which will give me a monthly income and sell it in a couple of years if we decide to stay in the USA. So we are quite well off but it seems that this low credit score will really effect our future plans.

Can anyone tell me if these bad debts will stay with him for 10 years and also perhaps recommend someone or somewhere that he can go and speak to, to try to sort his credit score out.

Any help that anyone can offer with this problem will be hugely appreciated.

I don't know if 10 years is the right answer but it does linger on the report for a very long time.

There are all kinds of mortgage programs available for people in all sorts of situations. For example, if you put significant cash down payment then you may not even have to go through the qualification process. If you want larger lender participation on the property and based on the credit rating you do not qualify for a prime loan, there are many sub-prime lenders out there. The difference will be the interest rate you will be charged.

So will you be able to purchase a house? Most likely but it depends on at what cost. A good mortgage broker can explain to you all the options you have available. It would be best to locate one before you start shopping so you know exactly what your options are.

[PlatyPius 5]

7 years, if I'm not mistaken.

That's how long it takes for a bankruptcy to go away; used to be 7 years, anyway....may have changed recently.

[Saddle Bronc 124]

7 years, if I'm not mistaken.

That's how long it takes for a bankruptcy to go away; used to be 7 years, anyway....may have changed recently.

7 years is correct, unless a credit-repairer is used (shorter, but oft costlier).

[missy_antha 0]

He has been told that he may as well have not paid it off as it doesn't make any difference.

If you are saying that a bankruptcy takes 7 years before it goes away, doesn't it seem very unfair that if you make the effort, clear your debts and thus owe no one, you are still classed in the same bracket as a bankrupt who may owe thousands in unpaid debts which will never be repaid?

So he might as well have not paid any of that off. Used the $6000 to get himself some secured credit cards and just started rebuilding his credit up that way?

This seems crazy that there appears to be no benefit what so ever for actually paying it all off!

[PlatyPius 5]

There IS no benefit to actually paying it all off. It all drops off eventually anyway.

[edsperfect 25]

He has been told that he may as well have not paid it off as it doesn't make any difference.

If you are saying that a bankruptcy takes 7 years before it goes away, doesn't it seem very unfair that if you make the effort, clear your debts and thus owe no one, you are still classed in the same bracket as a bankrupt who may owe thousands in unpaid debts which will never be repaid?

So he might as well have not paid any of that off. Used the $6000 to get himself some secured credit cards and just started rebuilding his credit up that way?

This seems crazy that there appears to be no benefit what so ever for actually paying it all off!

I think your problem is more serious than you think. A person who lets his credit get out of hand and can not resist the urge to buy on the credit card is going to have financial problems all his life. His problems will become your problems when you marry him and you will never be out of debt. The purcahses will just get more frequent and larger to make use of your credit.

You don't want to hear this from me or anyone else. You are making a bad choice for a man. I know, you will change him, he will change, etc., etc., etc. He will not and you won't listen to me but that is my business and i know what i am talking about.

HAPPY THANKSGIVING

[Mags 112]

Missy is asking about credit checks, not a character assasination of her fiance...which is uncalled for btw.

[PlatyPius 5]

Because heaven knows that people don't EVER get into situations where money is tight and credit cards are sometimes needed to pay bills, buy food, etc...... Must just be that he's a free-spender and will pillage your nest egg.

I really hate morons.

[missy_antha 0]

A little harsh Ed, but reading some of the horror stories on here and how some people are taken for a ride I can see where you are coming from.

He lost his job a few years ago and got himself into debt, it can happen to anyone. However he's the one who will have to support me not the other way around, as I won't be able to work when I first arrive. He doesn't even have a credit card now.

Also he is the one who has just inherited $50,000 not me!

[jamrok 0]

My fiance (He's the american citizen) had awful credit. About 4 different credit cards that he had maxed and had then just been paying the minimum payment. This had affected his credit rating so much that no one would give him credit.

18 months ago I lent him the money to pay back his debts approx $6000 so not a huge amount.

My credit in the UK is fantastic, I am a bank managers wet dream, however my fiancee and I decided that as he then got his dream job earlier this year, that I should move to the USA.

My question is that since he paid back those debts and has now been earning a good wage since April of this year why is his credit score still the same?

When I move over in January I would like us to buy a house but I'm worried whether we will be denied a mortgage. as I will have no Credit History and his is still rubbish. We have also been told that even if you pay all of your debts off they still effect your credit rating for the next 10 years!!!

His mother died a few months ago so he has $50,000 coming from her any day now, plus I own my house in London outright which is worth approx $550,000. I am going to rent that out which will give me a monthly income and sell it in a couple of years if we decide to stay in the USA. So we are quite well off but it seems that this low credit score will really effect our future plans.

Can anyone tell me if these bad debts will stay with him for 10 years and also perhaps recommend someone or somewhere that he can go and speak to, to try to sort his credit score out.

Any help that anyone can offer with this problem will be hugely appreciated.

I am a loan Officer with a National Bank. First of all, many things affects one's credit rating: revolving debt(credit cards) is responsible for 40% of a person's credit rating.....maxed out cards...very bad....late pays bad. Credit ratings are adjusted monthly and NO he will not stay with bad credit for 10 yrs. He should pay down his revolving debt to 20% or less....that alone will give him a huge boost. Have him make timely payments and I assure you that in 6 months he credit will be fine....assuming that he has no previous bankruptcy, no tax leins, unpaid child support etc. Additionally you are able to buy a house in your name under the "FOREIGN NATIONAL" program...many banks offer that. Some will require from 10% to 30% down...excellent rates to boot.....even with worse case situation you are still good to go. Stop worrying...life is too short