01-09-2010 05:06 PM
I am trying to purchase a home within the next 6months. Just recently, I applied for a secured card, got it in the mail, and have logged on to myfico scorewatch to see if I have a score increase for 2 weeks now ( I know a little obsessive). Current scores EQ 568 Tran 606 EX 590 (pulled from mortgage company). Credit report from mortgage company comments states "lack of revolving accounts". CC with New Millenium bank for $300, first statement has not been sent as of yet, however online balance is $59 for annual fee. Broker says I need a 620 credit score to qualify. MY GOD, I ONLY NEED 30 POINTS!!!!!
How should I go about paying the $59. Should I wait until I get my statement or pay now? I have the funds to pay today. Is it possible to get the 30 points I need? Also, NMB allows you to deposit money into your secured account to increase the credit limit. Should I increase now or wait 6 months? Thanks for any advise.....
FYI, 3 baddies, one PIF with PFD, one PIF and the other I am still working on.
01-09-2010 08:25 PM
01-10-2010 07:45 AM
To tweak to the highest points possible members have found that the magic number is to have 1-9% revolve on your utilization. So pay it down to somewhere between $1-$30 and let that report. I would pay it now and just let it sit and wait until it updates on your report. As for getting 30 points that is impossible to predict but that is alot of points.
When DH opened his first card, a bank card, he gained 29 points, going from 651 to 680. He was carrying a $27 balance on a $500 CL card when it reported. I would report LESS than $27 (9% of your $300 CL) and I would even shoot for about 3%. YMMV.
I'm not sure where you're checking your reports daily. If you pull a CCT report, look at the inquiry page and see what the code is for your New Millenium Bank account.
What were the four comments you received from each of the CRA's on your mortgage pull? ("lack of revolving accounts" would be one of four comments). Perhaps there's some additional work you can do for a few points.
Best of luck!
01-10-2010 08:08 AM
Thanks for your reply,
Experian/Fair Isaac 606
40 Derogatory public record or collection filed (I have no public record)
33 Proportion of loan balances to loan amont is too high (have 2 student loan, pays as agrees opened 8/05, total bal. 45k)
20 Time since derogratory public record of collection is too high (was a full time student (nursing) 2 collection accounts from 8/09
16 Lack of recent revolving acct information
08 too many inquires last 12 months
same as above except: 015 lack of recent bank revolving information
Does not mention lack of revolving account
otherwise, same as above
When I spoke with the mortgage broker they referred me to their "home buyer's club" which I was hooked up with a credit expert. We went through each account reported on my credit report, we found the ones that were incorrect and send disputes to CRA. Was told to pay off the 2 most recent baddies, was also told it would increase my credit score to get a secured card. According to the credit repaid guy, paying the 2 baddies will help the score, I am sending a PFD tomorrow. Still waiting on the disputes to complete, sent the letter out on Dec. 20, 09.
Before going to nursing school my husband and I always paid our bills ontime. December of 08, his company reduced hours, so income went from 65k to 30k instantly. We lived off our saving, for I still had one year to complete my program. In April, the bills were overwhelming for one person to keep up with. I continued my pursuit of graduating from nursing school, landed my first gig and currently making 48k yearly. The only debt I have is my $280 student loans......
Just felt the need to vent for a minute ;-). thank you for any advise you can give.
01-10-2010 10:58 AM
The major negative influence on your FICO scores will remain even after the baddies are paid. A CO is still a CO after payment, albeit a paid CO. This may not be the best time for you to pursue a mortgage. Fix credit first - app new credit later.
01-10-2010 10:01 PM
Thank you, for your advise. We currently own our home now and seriously need more space (husband, two teenagers and a six year old, all living in a 1100 sq ft home,lol, now can you understand my great desire for wanting to move to a bigger home ASAP, ;-) and just recently had a down fall, which allowed the 3 collection account to be sent to my credit report. I have 3 baddies that are recent and need to be paid. I spoke with AT&T and the rep stated they will remove debt if account is paid in full. I have written them a letter and will send the letter to AT&T requesting for a PFD certified mail in the morning. The other CA has already agreed to remove the other debt, just waiting on the PFD letter from the company. Therefore, I have the possibility of having two recent CA removed from my credit report. In the process of sending the third CA a PFD, but I don't think they will budge. So hopefully, and I truly mean HOPEFULLY, we can have these 2 recent items removed, clean the credit, and purchase a larger home.
If the recent collections are deleted, do you think the score will increase. Thank you.....
01-10-2010 11:28 PM
You are going to need a 620 middle and maybe a few thousand in the bank and 2 years same line of work.
Wait until you have more than a 620 and then see if they [mortgage banker/broker] can run you through the FHA approval system and get an approval.
Once they do, you are going to need 3.5% down, and you have until April 1st to get your tax credit.
Seller can pay your [up to 3%] closing costs, or you can stack them on top of the financing!
01-10-2010 11:55 PM
RED, thank you for your advise...
Here we go.....
1. Everyday since Dec 15 I have been working on my credit bumps
2. I have been in the medical field for approxiametly 15 years, however decided to go to school to get my BSN, and now currently working on my Master's in nursing
3. I have exactly $7239 in my saving account, money I have put aside from working two jobs that started in Sept.
4. The builder will pay $3000 for closing cost
5. To receive the tax credit I must have a contract signed by April 1st 2010, and actually close by June 30 2010.
What do you think?? Thanks :-P