Question by miserable: Why cant a person with poor credit (580-600) obtain a loan even with a cosigner with great credit?
I have good and I have a few bad on my credit. Negative debt is less than 00. I have a car in my name paid on time always. I cannot obtain a mortgage, a consolidation, or a personal loan even with a cosigner. They all say both people have to have good credit. WTH is a cosigner for then? I need to refinance my land contract and cannot because of this. I thought well if I consolidate my car and use a little extra I could pay on the couple medical bills on my credit. NOPE<<
My negatives are a cable company that I currently have services with! I paid the amount before the date it says on my credit to get the cable services back. TimeWarner would not allow me to have services if I didnt. The other are small medical bills that everyone has told me not to pay because they are about to fall off. I didnt even get bills for those medical bills!
Your not understanding! I pay my bills. Ihave a car loan never been late ever and have had it in three years! A credit card never been late since I have had it for a year. A line of credit paid all the time on time. I have a few medical bills and two things that should not be on there that I am disputing? So why would I not get a cosigner!!! i pay my bills!
Best answer:
Answer by Wari Lee
why would a bank lend you money and why on earth would anyone want to cosign with you….
you should be ashamed for even asking someone to cosign….fix it yourself…
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Banks have really tightened their lending standards recently. Try a smaller bank or a credit union.
It’s up to the lender. A willing cosigner does not guarantee loan approval. Your INCOME could also be a factor.
Cosigners are best paired with people who are just starting out and have no credit at all. Someone who has established that they don’t pay is not a good risk. Would you want to lend me money if I paid back some people and didn’t bother to pay back others? If your medical bills are “about to fall off” then they’ve been ignored for a long time. And it doesn’t matter if you “didn’t even get bills”. You knew you owed the money…..or at the very least, you know you owe it now.
If you have a car loan that you have paid on time for 3 years, your credit/score should be better than 600, especially if those medical bills are close to the 7 year mark.
Also, if you paid the cable bill to get your service back, the cable bill wouldn’t be showing on your credit report. Cable companies don’t report to the credit bureaus. If you default on the bill, they sell the debt to a collection agency who reports the debt to the credit bureaus.
Have you actually pulled your credit report to see what shows (AnnualCreditReport.com)? I think you may have more negatives than you think.
In any case, you would need at least 620 FICO for an FHA mortgage and 720 for a conventional mortgage. There are many other considerations besides your score. First, mortgage companies will require that all negatives on your credit report be resolved before approval of a mortgage. There are also other factors: stable work history, salary, debt to income ratio, other assets, etc.
It is also a very bad idea to roll your car loan into your mortgage. Since you have a land contract, you might run into problems with the appraised value of the property being less than the loan amount you want. You can only get a mortgage for 80% of the appraised value.