Ten Points & Home For Kelly

My fiance and I are preparing to buy a house soon. Our loan officer says he needs to bring his credit score up 10 points.

We will have the money to pay off most if not all his old debts very soon. My question is where to focus our efforts for a 10 point increase.

He has about 4 misc accounts (all charge offs) that amount to about $1200 total and an auto repo that is for $16,000 (the amount owed when it was repo’d about 2 years ago).

We never recived any paper work on the repo telling us when it was sold or for how much. We live in California so the statue of limitaions in 7 years (I believe).

We do plan on settling up what is owed eventually. I am pretty sure we can get the small debts to pay for delete.

Is it possible to get a pay for delete on the auto repo? If not what is our best action.

Thank you for your help!

~Kelly

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Hi Kelly,

I believe California statute of limitations for the auto loan is four years.  Keep in mind, there is a difference between statute of limitations and credit reporting limits.

Pay for delete is what you want, because paying the collection in the absence of a pay for delete may likely reduce your credit score.

The documents that you’ve listed regarding the repo would be a means of challenging the repo should the creditor attempt to obtain a deficiency judgment through the Court.  Incidentally, the UCC 9-210 allows the consumer to request an accounting on a car loan; failure of a creditor to comply with its provisions results in an additional $500 to the consumer. 

And along those lines, I’d look into the FDCPA, FCRA, and California’s statutes for the long haul.  In the short run, one pay for delete should get you ten points right away. 

Thanks for the questions and hope this helps.

Paul

This author is not an attorney and this information should not be considered legal advice.  Please consult an attorney for legal advice.