Reply
Contributor
maygirl
Posts: 87
Registered: ‎04-24-2012
0

Clarification on 12 mth rule??

 I have been using these boards religiously to improve my credit and finally got to a 611 midscore! I literally almost cried in the mortgage office... Anyway he doesn't go under 620, and the simulator didn't know anything that would give me points except paying $5000 to my student loans, but that would only give me 6 points. None of the remaining negatives will delete ANYTHING, so I think my score is kinda "stuck" for the time being.

That being said I know people have gone down to a 580, so here is the real point.

 

Midland Credit "bought" a debt from 2009 in Feb 2012, will I have to wait until March of 2013 to even be eligible for an FHA loan???? THe mortgage guy didn't seem worried about it if I got above a 620, but he also mentioned a 640. I know I should have asked but I already looked crazy for loving a 611!!! lol Plus I knew someone on here would be able to answer!!

Valued Contributor
rckstrscott
Posts: 2,660
Registered: ‎04-25-2011
0

Re: Clarification on 12 mth rule??


maygirl wrote:

 I have been using these boards religiously to improve my credit and finally got to a 611 midscore! I literally almost cried in the mortgage office... Anyway he doesn't go under 620, and the simulator didn't know anything that would give me points except paying $5000 to my student loans, but that would only give me 6 points. None of the remaining negatives will delete ANYTHING, so I think my score is kinda "stuck" for the time being.

That being said I know people have gone down to a 580, so here is the real point.

 

Midland Credit "bought" a debt from 2009 in Feb 2012, will I have to wait until March of 2013 to even be eligible for an FHA loan???? THe mortgage guy didn't seem worried about it if I got above a 620, but he also mentioned a 640. I know I should have asked but I already looked crazy for loving a 611!!! lol Plus I knew someone on here would be able to answer!!


I don't know, I am guessing its a per-lender rule more than FHA, but when LVNV put an old debt, but a NEW collections on my file in Feb 2012 it killed my mortgage until Feb 2013... I had to get it removed...

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 09/14: TU: 784 | EQ: 752 | EX: 784
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession


Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $13900, Citi/Home Depot $8500, Capital One Cash Rewards $3500, BOA $7500 Total Utilization: 3%. AAoA: 2yr, 9mth. INQS: 1 TU, 1 EQ, 3 EX
Established Contributor
thankfulheart
Posts: 619
Registered: ‎09-26-2011
0

Re: Clarification on 12 mth rule??

I'm not sure I'd buy that paying $5K on student loans will help your score all that much.  Do you have any CCs? If not, get some. If so, what are your balances?

 

As far as the 12mo thing goes, the UW guidelines I have read from FHA and USDA clearly state no lates or collections in the last 12 months which was what I was also told by my LO.

 

IMHO, I would apply for some (secured, if necessary) cards and keep the balances low to build credit, do NOT apply for anything new after this month, and let it all stew.  Baddies will get older, good stuff will season, and your score will slowly climb. Use the time to keep GWing like mad (and make sure you have opted out!)

 

I've said it many times, I wish I had known I would need a year to prepare to apply for a mortgage.

Starting Score: 10/1/2011 EQ 568 TU 593
Current Score: EQ 664 TU 700 EX 701 (FAKO)

Contributor
vlaw1084
Posts: 85
Registered: ‎04-09-2012
0

Re: Clarification on 12 mth rule??

Has anyone tried credit repair?  I know a good friend of mine that did who had an old debt put on LNLV funding and got it DELETED from all 3 bureaus because it was classified as a " re-aged" debt.  YOU don't have wait 12 months if you don't want to, just find someone who deals with re-aged debts. The stats I'm sure expired on that debt anyway and was sold to them.  ALSO.....remember to opt-out of solicitation (  this alone will give you about 10-15 points! ) , that way old collectors will not be able to tell what you are doing like trying to go for a mortgage.

 

On the Credit score issue, If you open up a cc tradline your score will go up.  There are companies that do this without doing a credit check, but you will reap the benefits of having them report to all 3 bureaus within a few months, thus raising your score to the level you need it to be.  So my advice......DONT GIVE UP, fight if you really want this!

Valued Contributor
rckstrscott
Posts: 2,660
Registered: ‎04-25-2011
0

Re: Clarification on 12 mth rule??

[ Edited ]

vlaw1084 wrote:

Has anyone tried credit repair?  I know a good friend of mine that did who had an old debt put on LNLV funding and got it DELETED from all 3 bureaus because it was classified as a " re-aged" debt.  YOU don't have wait 12 months if you don't want to, just find someone who deals with re-aged debts. The stats I'm sure expired on that debt anyway and was sold to them.  ALSO.....remember to opt-out of solicitation (  this alone will give you about 10-15 points! ) , that way old collectors will not be able to tell what you are doing like trying to go for a mortgage.

 

On the Credit score issue, If you open up a cc tradline your score will go up.  There are companies that do this without doing a credit check, but you will reap the benefits of having them report to all 3 bureaus within a few months, thus raising your score to the level you need it to be.  So my advice......DONT GIVE UP, fight if you really want this!


Your good friend, with their old LVNV account that was deleted has no bearing at all on the OPs scenerio..  Its apple and oranges. This isn't a JDB, old debt from what it looks like on the original post.


The debt is from 2009 -- The collection is newly reporting in 2012 -- This is not a 'reaged' debt, nor is it likely past SOL in almost every single state at this stage.

 

Opting out does nothing for scoring, at all.  And any collection company that has permissable purpose can still check your credit with soft OR hard pulls, at any point, even after opting out.

 

Opening up another trade line doesn't always bring up your score, in fact, it usually results in point loss at the start due to your AAoA going down, and your inquiry. And very few, if any, companies will open up reporting trade lines without doing at the MINIMUM a soft pull, but in most situations, a hard pull.

 

Basically, everything you said is completely opposite of conventional thinking about FICO scoring,,,

 

Clearly, the OP needs to take steps to have this removed.. Midland is hit or miss on whether they will work with you..

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 09/14: TU: 784 | EQ: 752 | EX: 784
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession


Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $13900, Citi/Home Depot $8500, Capital One Cash Rewards $3500, BOA $7500 Total Utilization: 3%. AAoA: 2yr, 9mth. INQS: 1 TU, 1 EQ, 3 EX
New Member
GVDenny
Posts: 1
Registered: ‎06-28-2012
0

Re: Clarification on 12 mth rule??

[ Edited ]

There are absolutely lenders that will do an FHA mortgage with a 611 score. FHA guidelines allow for a 500 - 579 score with 10% down and a 580 score and up with 3.5% down. The under 580 version is harder to find but the 3.5% 580 and up version should be readily available from a mortgage broker who has multiple sources. Please note that credit score alone is not the determining factor so your complete income, asset and employement history will also need to be evaluated. 

Contributor
vlaw1084
Posts: 85
Registered: ‎04-09-2012
0

Re: Clarification on 12 mth rule??

I would have to disagree on the opt out and credit boost with opening a tradeline.  Why?  because it worked for me :smileyhappy:  I got a 30 point boost just by opening up a 1k tradeline and it reported the next month to all 3 bureaus.  The opt -out option may be a hit or miss with some folks, but again it worked for me. Have you tried it or know anyone that has?  I agree on the debt issue though, if the stats have not expired then the debt cannot be re-aged, but there has to be solution to this issue can anyone chime in?

New Contributor
mrordinary
Posts: 72
Registered: ‎03-11-2012
0

Re: Clarification on 12 mth rule??

To the OP, if you search the boards for FHA under 620 you will find some recent (last 6-8 months) successes from members of myfico who have closed all across the country with less than 620 scores... I'd recommend trying a PFD on that recent collection though. It's much harder to "ignore" recent derogs with lower than 620, usually 640 scores.

Starting Score: 620
Current Score: 649EQ/640EX/642TU
Goal Score: 700


Take the FICO Fitness Challenge
Valued Contributor
rckstrscott
Posts: 2,660
Registered: ‎04-25-2011
0

Re: Clarification on 12 mth rule??

[ Edited ]

vlaw1084 wrote:

I would have to disagree on the opt out and credit boost with opening a tradeline.  Why?  because it worked for me :smileyhappy:  I got a 30 point boost just by opening up a 1k tradeline and it reported the next month to all 3 bureaus.  The opt -out option may be a hit or miss with some folks, but again it worked for me. Have you tried it or know anyone that has?  I agree on the debt issue though, if the stats have not expired then the debt cannot be re-aged, but there has to be solution to this issue can anyone chime in?


Opening a trade line can give people boosts, or it can take points away. It depends on what you credit file or make up has. It worked for you, which is awesome, but it isn't cut and dry. If it changes your AAoA drastically, or what have you, it will impact negatively.. I

 

There is no way opted out does anything for FICO scoring, it is not factored in any possible way. The point gain you saw had to be explained by some other FICO scoring factor being manipulated in some fashion. I have opted out, opted in, opted out again. No changes, no movement. I opted out when I applied for my mortgage, opted back in later, and then decided I didn't want the preapprovals.

 

I agree with the above. Attemp a PFD with Midland. You likely will not be able to finance with that recent of a derog on your file. I would attempt a PFD, unless there is something eggregious about the collection account. Did they send you a dunning notification before placing it on your credit file? There is legal precedent indicating placing an account on a credit file is considered collection activity, therefor requires a dunning.

 

If you didn't get a dunning, I would file a complaint against Midland with the BBB and FTC, see if you can grease a deletion that way.

 

-scott

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 09/14: TU: 784 | EQ: 752 | EX: 784
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession


Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $13900, Citi/Home Depot $8500, Capital One Cash Rewards $3500, BOA $7500 Total Utilization: 3%. AAoA: 2yr, 9mth. INQS: 1 TU, 1 EQ, 3 EX
Contributor
maygirl
Posts: 87
Registered: ‎04-24-2012
0

Re: Clarification on 12 mth rule??

Thanks for the advice/info. I have enough open active tradelines, and was told to not apply for anymore credit. My accounts are paid down to under 9% and he said do not pay them off all the way. The student loan was only giving me 6points on the simulator, which still puts me under 620. My mortgage guy gave me a credit repair company to contact and I was hesitant to call them since I used these boards and got my mid-score from a 507 April 4th, 2012 to a 611, but perhaps I have done everything I can do! I am afraid to upset Midland since the debt still is in the SOL Aug 2013. I do not recall receiving a dunning notice, but I also thought my credit was completly ruined so I threw a lot of things I received away.

I guess waiting another 6mths or so won't be the end of the world if I know there is an end in sight!


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}