Collection- Credit report

[Anonymous]

I am just out of college. So I do not have a long credit history. However, I do have student loans, auto loan and personal loan. Also, a maurices card and I am an authorized signer on another credit card. None of these have ever been late, I always pay everything on time if not early. Currently my lowest credit score is 620. The reason for this is when I was 19 I had to go to the hospital and so the medical bill was technically in my name, however I have never seen the bill simply because my parents were paying the medical bill, as do most parents for any 19 year old college student. Now that I am 20 (still young I know) My fiance and I are looking to buy a house, his credit is 744 so his isn't a problem but mine is a hindrance on this purchase. I saved up and paid the entire balance off the collection, and they did in fact send me a signed fax saying that they requested for removal from my credit report. That was around OCT 15. They said they report every month so that it should not be on my credit report come November, at the latest December. I'm wondering if this will improve my credit report tremendously seeing as it is the only derogatory thing on my credit report, if it gets removed at all that is. If it doesn't get removed what would be my next steps after this? Seeing as it would be stuck with me until I'm at least 26, and I don't think that I can wait that long to get a house. We are preapproved for a loan, but because of my credit we have to put 20% down, which we just plain can't afford. We can however afford 3.5- 5% down If anyone could provide insight that would be so much help! I'll greatly appreciate any information one could offer! Thanks! ..

[Anonymous]

To clearify, I guess I'm wondering if it actually gets removed, how much will it affect my credit? I need it to be at least a 640 to get an FHA loan that allows for that low of a payment.

[llecs]

The score impact when removing a baddie depends on several scenarios like the age of the baddie, the type of baddie, age of the baddie, dates listed on the baddie, your scoring bucket, whether or not the collection is listed as the top one or two issues in the negative scoring codes, how many other baddies are reporting, etc. I've lost as much as 100 points with a new collection reporting on a clean report, with just as many returned when it fell off. It can be a major score dinger. Not saying you'd hit 100, but double digits are real.

[guydiver]

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@Anonymous wrote:

I am just out of college. So I do not have a long credit history. However, I do have student loans, auto loan and personal loan. Also, a maurices card and I am an authorized signer on another credit card. None of these have ever been late, I always pay everything on time if not early. Currently my lowest credit score is 620. The reason for this is when I was 19 I had to go to the hospital and so the medical bill was technically in my name, however I have never seen the bill simply because my parents were paying the medical bill, as do most parents for any 19 year old college student. Now that I am 20 (still young I know) My fiance and I are looking to buy a house, his credit is 744 so his isn't a problem but mine is a hindrance on this purchase. I saved up and paid the entire balance off the collection, and they did in fact send me a signed fax saying that they requested for removal from my credit report. That was around OCT 15. They said they report every month so that it should not be on my credit report come November, at the latest December. I'm wondering if this will improve my credit report tremendously seeing as it is the only derogatory thing on my credit report, if it gets removed at all that is. If it doesn't get removed what would be my next steps after this? Seeing as it would be stuck with me until I'm at least 26, and I don't think that I can wait that long to get a house. We are preapproved for a loan, but because of my credit we have to put 20% down, which we just plain can't afford. We can however afford 3.5- 5% down If anyone could provide insight that would be so much help! I'll greatly appreciate any information one could offer! Thanks! ..

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If the collection is the only negative you have on your reports, then I believe you would realize a substantial score increase if it is removed.  As you state the rest of your report is clean with positive payment history, I would bet that you would easily get the 20 points you need.  Remember that mortgages will most probably use the lowest middle score(EQ,TU,EX) of the joint applicants to determine your loan conditions.  Good luck.

[Anonymous]

that is my lowest middle score...my otger ones i believe are 623 & 639... but thank u so much for your help

[guydiver]

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@Anonymous wrote:
that is my lowest middle score...my otger ones i believe are 623 & 639... but thank u so much for your help

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Where did you get your scores? If you have all three they are most likely FAKO scores and may or may not be anywhere close to your real Fico scores. You can purchase your Equifax Fico score from this site.  The TU score used for most mortgages is the 04 version not available here.  You cannot get your EX score except under a few circumstances.  Your mortgage will usually pull a Tri-merge Fico.

[Anonymous]

my mortgage specialist pulled them and showed them to me...so i know i have the right scores.

[guydiver]

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@Anonymous wrote:
my mortgage specialist pulled them and showed them to me...so i know i have the right scores.

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Awesome, now you really know where you stand.  Work  on getting that baddie off of there and you should be good to go.

[guydiver]

Another thing to look at .  Since your scores are close, you can do some things to tweek your scores.  Make sure your total revolving utilization is between 1% and 9%, no more, no less.  Also, if you have more than one credit card on your reports, try to have only one of those cards report a balance at the time you are needing your Fico's to max. out.  All cards reporting a $0 balance won't maximize your scores.