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 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.

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?

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.

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).

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!

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

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

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

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.

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!

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

This is BS. My credit score was below 600 (low enough that I was denied an apartment I applied for) and I had about $10,000 in credit card debt (besides $40K in student loans) and some late/missed payments. After three years of on-time payments and then getting enough money to pay off all the credit cards, and getting a new card that I pay off religiously, my credit score is well above 700. It's still possible I'll have some problems, but I'm not worried because I know my score is on the border between "good" and "excellent" and much better than most people's.

There is no way to "sort your credit score out" except to make on-time payments and dispute anything on your credit report that's wrong. Don't make the mistake I did of using a credit-counseling company unless you really need someone to explain credit to you; otherwise the money you pay them is a total waste that's better spent paying off debt.

Best thing for your fiancee to do

1) Get a copy of his credit report
By law you can get a free credit report annually by the 3 credit report agency
https://www.annualcreditreport.com/cra/index.jsp

2) keep making his payment on time, whether it's phone bill, gas bill, any payment.
At time when you have credit problem it's not good to close the credit card, The best thing to do is to set up a monthly payment plan with the card company and STICK to it, over time it will shows that you are credit worthy.
If there's enough balance on 1 major credit card, you can check if they have a NO FEE balance transfer with a LOWER interest rate , then you can combine your cards into ONE
But BUT DO NOT CANCEL the card that you transfered the funds from,
what it does it keeps that money open to you for usage and it counts on your credit rating, The more you pay and the word is CONSISTENTLY paying all your bills on time, your credit score will start to go UP.

3)AlSO if you have to ge a mortgage, you can sign up with an HFA loan, Housing Federal assistance, based on your income, they have some loans program where you have to attend a financial planning class as part of the loan requirement, but each state is different, the word is patience

Good luck

He paid all of his debts off in May 2005 which was 18 months ago.

So I don't understand how when he got his latest credit score about 3 months ago it was the same as before he paid it all off - it didn't appear to have moved upwards at all.

That's not right is it?

He paid his debts off in May 2005 which was 18 months ago.

What I don't understand is that when he got his latest credit score about 3 montrhs ago it was the same as May last year. It hadn't gone up at all.

That doesn't seem right does it?

Although his score may still be reflected by past debts, if his debts are paid, this will show. And when buying a house this is what they are looking, paid off debts vs debt to income ratio. Now that bad ratings will still apprear for 7 years from the last reported date. He can now that debts are paid, if they are showing so, get with the major three credit bureaus and dispute the files. But the are all kinds of mrtagae lenders there to lend a helping hand, just becareful of hiked-up interest for such assisatnce.

It was harsh i admit that but i did it on purpose because of the horror stories and the fact some people attempt to look at the world through rose colored glasses rather than reality. Not knowing all the facts, some of which you just added, maybe it was too harsh. I just hate to see people take a few that "everything will be all right" when they may have no ability to change the other person. I have been around too long and mayhbe have become a shade cynical because of what i have seen happen to some nice people. Mostly women b ecause sometimes they think with their heart rather than their brain.

As long as you know what you are getting into. GOOD LUCK

I am a loan processor with a Major US Bank. It's true that many things affects one's credit rating. He should pay down his revolving debt to 20% or less, make timely payments and not apply for any NEW credit. Its true that you are able to buy a house in your name and he could be titled on the house with you. We have many foreign borrower programs. If you send a private message to me, I will give you the phone number of a person who is brilliant and very smart. She will help you do what's best for both you & your fiance.

Credit repair companies often help as well.

so you are saying that since i have closed the credit cards and have been making ontime payments to pay it down for the last two years my credit rating is ok? total debt owed now is just over 10g