Expert: Brian Beardsley - 8/11/2009

Question
I am recently married but have poor credit from a previous divorce.  I had 2 judgements from credit cards, one of which I paid in early 2009.  The other because it is a significant amount I will need to either save to make an offer or pay over time.  We are currently renting and we have been paying rent,car loan and everything else on time.  We are anxious to buy a home.  Will I need to completely satisfy this judgement before a lending company will consider us or would an established payment plan and history of consistent timely payments (say 6 months or a year) allow us to be considered for a mortgage loan

Answer
Thanks for your question - An established payment plan over a 12 month period would be helpful - Be sure to keep any copies of correspondence from the creditor, as well as copies of cancelled checks from your checking account (do not pay with money orders - the lender will want to see it coming directly out of your account)  It would also be helpful if the creditor would update your credit profile on the 3 agencies, to reflect "payment agreement / paid as agreed", as this would increase your credit score

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