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Apping on Monday UpDAtEd

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foofighter74
Established Contributor

Re: Apping on Monday


@Kathy4NU wrote:

Just received my Scorewatch notification for the inquiry for the mortgage credit app.  Didn't lower my score! YEA!!!!

 


Well, that's because they dont' count against your score at the time the inquiry is generated.  The hit comes after 30 days pass.  The total amount of points you'll lose depends on how many other recent inquiries you have outside that 30 day window.

Message 11 of 15
foofighter74
Established Contributor

Re: Apping on Monday


@breedo wrote:

Kathy, a question. What does it mean when you say you opted out and what's the reason/benefit of doing so? I am planning on applying for a mortgage in a couple of months, should I opt-out now, and are there any negatives to doing so?

 

Good luck with your mortgage!


You can go to optoutprescreen.com....what opting out does is it prevents you from being prescreened for credit and insurance offers.  These only put soft pulls on your credit report, so no issue there - BUT, because some information in your credit file is available for companies to view, including collection agencies, there's always a chance that when you apply for a mortgage or card loan, credit card, whatever, a collectoin could show up on your credit report.

Collection agencies see you apply for a loan, they know you're going to want to take care of it to get the loan you want...so bam, you have a collection pop up just after you apply for a loan. 

 

If you opt out early enough, you greatly increase the chances that that won't happen.  It's a great idea to take care of it now.

 

Your credit score and report will remain unchanged by opting out.  The only negative is that you won't received the prescreened CC offers and such.  For most though, that's a positive. lol

Message 12 of 15

Re: Apping on Monday UpDAtEd

hi, how did you get 32 collections accounts and 5 pr deleted from your credit report? help

Message 13 of 15
CreditJim
Established Contributor

Re: Apping on Monday

Thanks for explaining that FooFighter. I've just opted out. I won't be missing out on anything, I have the cards I want and was fed up of getting junk mail inviting me to apply for credit cards with toy limits when I already have cards with $5k limits. Plus there is one old collection I had removed last year that could potentially pop back up when I apply for a mortgage so hopefully this will help. Thanks again.

Quicksilver 51k | Discover It $45k | Bonvoy Business $38k | Lowe's $35k | Costco $33.5k | SWACU $30k | Ink Preferred $28k | USAA Rewards $25k | Ink Cash $22.5k | Ink Preferred $22k | Amex Blue Business Plus $17k | Freedom Flex $16k | Freedom $14k | CSR $10k | Amazon Store $10k | Amazon Business $3k | REI $3k
Message 14 of 15
Kathy4NU
Frequent Contributor

Re: Apping on Monday

Credit Union called!!!

 

We are officially preapproved!!!

 

Terms are going to be a little different.  We are going conventional and doing two loans 80/15 with 5% down at 4% interest.  This way we avoid PMI.  The credit union is writing the loan and keeping it in house.  Should be easier to fly through??????   He alrady gave me 14 conditions.  Nothing I wasn't expecting; copies of ss cards, drivers licences and stuff like that.   Everything I can gather up in one evening.  He is ordering the appraisal on Thursday and it will take 2 weeks to get back.  He said he is going to tell me it will take 45 days so that I won't be disappointed if he can't get it done in 30 days.  Whewww.  At least he understands my need to know everything that is going on.  Being a college professor and researcher has it's draw backs!

 

The biggest reason we are having to go the above route is because I do not have 12 cancelled rent checks.  I make the mortgage payment on the house currently as it is in my parents name and I have always made the payments.  After making 12 monthly mortgage payments on the new loan than we can refinance into possible lower interest (depending on the rates in 12 months).  We are thinking the appraisal will come back at $165,000 and we will have the laon at $95,000.  I guess there is some funky laws about buying homes from relatives and making sure you are not kiting money.

 

 

How I got all that negative stuff removed?  I took it seriously and let the creditors know that.  I am a cancer survivor and 95% of the negative stuff was a direct result of the cancer (medical bills).  The other 5% was indirectly related to the cancer ie; I was broke and couldn't pay stuff.  Important to note that none were credit cards and I was not dealing with any 20, 60, 90 day stuff.  Even my student loans were so screwed up that the DOE decided it was best to delete everything than try to figure it out.    I figured out all my debts and put them in order by lowest to highest.   I also grouped them together by collection agency.  The collection agency I owed the least amount to got my first call.  I made sure I had enough to fully pay them. No payment plans from me.  Cash talks.  I started out telling them that I was prepared to pay 50% of the bill if they would delete.  Some countered offered and others wanted the full 100%.  If they refused to delete I told them I had other creditors that would like my money.  I told them how many people I owed and that they were free to pull my credit report and verify that.  I told them I would move them to the bottom of my list and would call them back after I dealt with the people who were willing to delete first.  Almost everyone agreed to settle for around 50% and delete.  Those that refused usually called me up a few days later (yes, they soft pulled me) and was willing to delete.  If they checked everything out they could figure out that they would not be succesful in collection on a judgment if they got one and that it would take a few years for me to get to them again.  My largest one was for $45,000 and I settled that one for $900.  I did have to submit lots of paperwork to show my income etc. and they did a charity write off on it.   I think when other creditors saw that amount they knew the wait was going to be long.  The last stubburn one I took to court and asked a judge to tell them to back off and clean my name.  I had all my documentation.  In the end the CA attorney volunteered to withdraw all information from credit reports etc.  However, 2 still remain on EX but show paid.  I think I am stuck with them until 2017.




June '12: EQ 553 TU 0 EX 545
April '13 Lender Pull EQ 731, EX 692, TU 722 - all FICO

Closed on home May 22, 2013 at 2:00pm!!!
CU Visa $1000, VS $350, Chase Freedom $1000, Discover IT $2500, Home Depot: $2700, Menards $3000, NFM $3500
What's been deleted: 32 collections, 5 PR, 2 tax liens, defaulted student loans
Message 15 of 15
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