Hello all. I just ran across this forum while doing some research about my credit score. I last had it checked when I bought my current home and it was a 710-730 at that time. I was just about to buy a vacation lake house and ran a 3 bureau report on 1-21-2008. It showed me a FICO of Exp. 608 ... Equifax of 648 ... and TU of 648. Experian has one late medical payment of $326 that has been paid and EQ and TU both show that as paid. I knew I had missed some medical payments and a couple credit cards that had been late.... but I had no idea it would be this bad.
So I go to the bank realizing my score has dropped a lot from my last known score; but the loan officer looks over my print out from online and says we should be fine ... it's good as long as it's over 620. She (National City) runs my credit report through their 'CSC Mortgage Service" company 1-25-08. I go back to see her the following Monday on the 28th and I get the news ... my FICO is 598 / 613 / 613 according to them. My first thought is how the heck could it drop that much that fast. There were no new inquiries, lates, or anything else that has posted in the past few days.
Any clue why an online report would be so much different than the one they ran (they also did a tri-merge)?
Next question is how can I fix this quickly (in less than a week or two so I don't lose this house)? My biggest issue is I have very high balances on 2 of the credit cards I use for work related travel. They are my own personal cards and I expense everything. One has a balance of $13,833 ($15K limit) ... the other has a $4,766 balance on a $5K limit. I also have one smaller one that has a $2,684 balance on a $11,820 limit).
Would paying down some of these credit cards with a big chunk and asking the bank to do a rescore raise my FICO enough to get over the dreaded 620? I don't enough cash to do the house closing costs, down payment and pay off the cards completely. I have about $5,000 in extra cash I can use to pay them down today and still cover the new home costs.
Would I be best to try to pay down the 2 smaller ones to about 10%. So, pay down the $4,776 balance about $4,000 ... and then maybe put the other $1,000 towards the card that has $2,684 on it? Or would it be better to put most on the largest card debt of $13,833 ... or even split it between the two that are almost maxed out?
I have been reading on here for hours and am much more informed now ... but still confused what I should do to get this up quickly. My wife will be so upset if we lose this house. I plan to try and dispute a few things that aren't accurate (a few are paid and saying by one of the bureaus that they aren't, or things are saying open that aren't, etc.). How long does it take to clear on my report if I pay down a card ... or dispute an item?
Should I try a rapid rescore service.... or do I ask my bank if they will use that service?
I'm looking for any advice I can get. I only need a little boost to get over 620 and then I don't have to pay such a high PMI and my rate improves.
Help!
