Scott,

I was wondering about what sorts of ramifications my credit will have on my obtaining a mortgage in the future? Here is the situation: while in college I got myself into credit card debt (about $6,000). After college, I married a debt-free man (no student loans, one credit card, great investments). Over the last 1 1/2 years, we have paid my debt down considerably (currently, I owe about $2,000, each card is at about $500). One of them was charged off, the other 3 were closed by the credit issuer.

Though my credit report is looking better, I would like to know how this will impact our obtaining a mortgage (not in the too near future--I'm 25, he's 27). We feel we'll be ready to purchase a home in the next 7-10 years. I'm very concerned about my credit rating inhibiting him.

Darlene

Darlene,

It's very good that you're asking these questions because there can certainly be an impact on your getting a mortgage. When you apply to get a mortgage, it's going to be in both your names so the bank is going to look at both credit reports.

They're going to see the same information that you mentioned, but they're also going to see that you've taken care to rectify the situation by paying off your debts. I personally believe that by the time you're ready to buy a house, none of that is going to matter at all! That's because it's so far in the future (7-10 years) that no bank is going to care about your college years. Plus, by then it's all going to be removed from your credit report anyway.

Keep up the good work!

Scott