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Any Hope?

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Jmc70
Valued Member

Any Hope?

I applied for a mortgage over the weekend thinking that my recent debt payoffs would report to the three credit bureaus before my credit was pulled for the mortgage.  I was wrong.  I just paid $18,000 in student loans off as well as my credit card of $756 (credit limit of $800).  When they pulled my credit, they stated my mid-credit score was a 588- I applied for an FHA loan. 

 

What can i do?  Is there any shot of getting approved for any mortgage out there?

 

Any help would be appreciated - kinda stressed out here.

Message 1 of 4
3 REPLIES 3
demo18c
Contributor

Re: Any Hope?

Try to pull your credit your credit before having a lender do it so you are not surprised. Wait for everything to post and try again.

Message Edited by demo18c on 01-20-2010 05:37 PM

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Message 2 of 4
Anonymous
Not applicable

Re: Any Hope?

paying off your student loan will be great for DTI but may actually hurt your FICO.  It changes your product mix and active accounts.  It may have little to no impact or may drop your score a few points.  Paying off a loan generally does not increase your score though. How much a bump you get from the CC being paid down will depend on several factors...how much other revolving debt/and the limits on those cards, you not using it, and your overall credit file.  You should see a small increase for that specific accoutn getting paid down.  If you had overall high utilization across the board, you will see a fairly decent jump if it is now all paid off.

 

For example, if you have 10K in available credit and the only balance showing was the 795, you were already under 10% utilization and though you will see a small increase for paying that card down, there will not be a huge jump.  But, it that 800 card awas your only card, then you went from 95% utilization to 0% and you could see a reall nice jump.

Message 3 of 4
Lel
Moderator Emeritus

Re: Any Hope?

I recommend pulling your credit reports to look for any negative factors that could be contributing to your low scores.
Message 4 of 4
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