@Crashem wrote:
@Ewoky wrote:
The scores in my scenario are FAKOs pulled from each 3 bureaus individually - lender pulled is very similar. I am trying to get up to 640 to apply for a USDA Rural Development mortgage loan. The lender suggested that I get a major CC and put a small balance on it, like under 10% --- pay for a couple months and watch the score jump. I'm hoping to buy a home before the end of the year. I have two small collection accounts remaining on my reports, both of which I have sent a PFD letter (one accepted and paid, so should be falling off soon). I have no other open trade lines. Several old closed accounts, some paid in full and on time, a couple derogatory. Just trying to figure out how to maximize my score increase.
Read my post from earlier. You need to get 2-3 revolving accounts going. Your score should go up even with the inquiry and new account hit. But I would be relying on myfico vs some FAKO to get a real sense on what is going on. You need to avoid taking an inquiry and not getting approved. Also, if you go for multiple accounts, try to spread the inquiries to different credit reports to minimize any inquiry hit. If you current scores are accurate, my guess with 2-3 cards and a few months will get you above 640 easily.
Do you have cash for secured credit card? That will let you avoid taking inquiry and getting rejected.
As for your negatives, how old is the remaining derogatory? And on the accounts that remain with both positive/negative history, how long ago were the last few late payments and were they 30, 60, 90's?
I can put up some cash for a secured card if necessary. Also, all the derogs are from many years ago, and all paid in full. One was a student loan that defaulted, but has been paid in full. All long ago. With two to three new accounts, won't it kill my AAoA?
And I do thank you so much for your help.
@Ewoky wrote:I can put up some cash for a secured card if necessary. Also, all the derogs are from many years ago, and all paid in full. One was a student loan that defaulted, but has been paid in full. All long ago. With two to three new accounts, won't it kill my AAoA?
And I do thank you so much for your help.
Yes your AAoA will be destroyed. You didn't happen to have an AMEX before did you?
LIMITS IN CARD DESCRIPTIONS
Wow it cut off my post. GRRR..
Don't worry about AAoA hit. Your FICO score should be higher with 2 accounts even with AAoA and inquiry hit. Think of it this way. Amount Owed is 30% of FICO score of which revolving util is big part. AAoA is big part of Length of History which is only 15%. New accounts/inquiries make up 10% but you recover most of your points in 3-6 months.
Can you answer following questions?
1) How much can you come up with for all secured cards? Assume you will need to keep money in for 6 months after mortgage
2) Can you get me real FICO score and what date that is from (and any significant changes since you got score)? If you are going to buy score here, then avoid the TU score.
3) Give me general credit profile such as AAoA, oldest account history, types of accounts and amounts, any negatives, etc. Also, tell me any significant differences between credit reports (ie EXP, EQU, TU).
BTW, please don't include any sensitive info in response
@Ewoky wrote:
I would not advise tying up money in secured cards. I would use any and all money I had laying around and bring that to closing/down payment.
You have had sucess the PFDs. I would expect that if the others will PFD (and also it would be nice to see if the other drogs can be GW'd), that your scores will go up to 640ish.
I don't know anything about USDA and their requirements for closing/down payment, but we are talking about 4 months before years end. So, I again repeat, I would not tie money up into secured cards.
I would focus on PFDs, GWing, and other routes.
Also, I would like to mention that if your accounts haven't been updated in 6 months, you most likely will not be able to purchase a FICO from this site.
I forgot. Many lenders (including FHA I believe) require no outstanding debts on credit report. You need to check with your lender. Basically, you can't have any unpaid collection accounts. I wouldn't tell your PFD guys that quite yet.
@Crashem wrote:
@Ewoky wrote:
Read my post from earlier. You need to get 2-3 revolving accounts going. Your score should go up even with the inquiry and new account hit. But I would be relying on myfico vs some FAKO to get a real sense on what is going on. You need to avoid taking an inquiry and not getting approved. Also, if you go for multiple accounts, try to spread the inquiries to different credit reports to minimize any inquiry hit. If you current scores are accurate, my guess with 2-3 cards and a few months will get you above 640 easily.
Do you have cash for secured credit card? That will let you avoid taking inquiry and getting rejected.
As for your negatives, how old is the remaining derogatory? And on the accounts that remain with both positive/negative history, how long ago were the last few late payments and were they 30, 60, 90's?
I disagree with this statement. If OP were to get a CC, and assuming approval rate with EXP's score, I would advise OP to take inquires on the CR with the lowest score.
The goal of the OP is to get a mortgage. NOT a CC.
So if the scores are: EQ at 646, EXP 610, TU 634. And inquires on EXP drop EXP's score, then it would not matter with a tri-merge pull with the lender taking the MIDDLE score.
Again, admittedly I do not know how USDA works and if they take Middle score or not. But OP's goal is to get a mortgage inside of 4 months. FAKO/FICO notwithstanding, OP should focus on PFD, GWing, etc. And if OP were to get a CC to help boost scores, I would advise OP to try to take inquires on EXP -- assuming approval.
ccnewcc,
Good point. You are 100% correct if they use the middle score method. But incorrect if they don't. His EXP is so low that he may also fall below minimum on all credit scores that a lot of lenders like to see. Typically middle score is used to determine rates as opposed to approvals. I believe FHA loans have less issues with rates as guaranteed by government.
@Crashem wrote:
@Ewoky wrote:
Read my post from earlier. You need to get 2-3 revolving accounts going. Your score should go up even with the inquiry and new account hit. But I would be relying on myfico vs some FAKO to get a real sense on what is going on. You need to avoid taking an inquiry and not getting approved. Also, if you go for multiple accounts, try to spread the inquiries to different credit reports to minimize any inquiry hit. If you current scores are accurate, my guess with 2-3 cards and a few months will get you above 640 easily.
Do you have cash for secured credit card? That will let you avoid taking inquiry and getting rejected.
As for your negatives, how old is the remaining derogatory? And on the accounts that remain with both positive/negative history, how long ago were the last few late payments and were they 30, 60, 90's?
I wouldn't pay for myfico esp if the fakos are close to what your lender is pulling. What many people don't understand is that every CS is a fako, unless your lender uses that specific score. I've had CCs send me my experian CS and it was completely different than myfico. What matters is cleaning up your Credit report. If you do that the scores will follow.
