Hi all, I've recently started looking at applying for a USDA loan. In my price range and location this seems to be the best option for me. They except lower than average credit scores and being a credit beginner this is attractive to me. I assumed my credit would be slightly below average but enough to qualify for the measly 620 required for USDA without requiring painstaking underwriting. I fall right at the limit on income in my area so getting the loan started before my pay would increase any further is important to me. So I signed up for credit monitoring at Mint.com ( An app I regurlay use to track spending) and all 3 reports varied wildly from each other.
EXP 712 Eqfx 630 TU 608
So assuming my middle score was above the threshold I began investigating further into mortgage rates and stumbled across FICO scores. Which led me here to myFICO. I decided to pull my FICO just to see the FICO score the lender would use. To which I was declined a score. (Equifax score is not high enough to calculate score.) This left me feeling absolutley sick. I stumbled across the forums and began reading through some of the credit monitoring discussion and many people here use USAA because all 3 reports are pulled every month. What I pulled from there was extrememly discouraging.
EXP 575 EFX 589 TU 575
My credit is very thin in terms of accounts. So I decided to apply for a secured credit card. (BoA) To which I was denied... 30 days yada.... So not wanting to tempt another inquiry I applied for an OpenSky secured that doesn't hit your credit as an inquiry. Approved last week and just funded the account yesterday. $300 CL I plan on using 1-9% utilization method.
My credit report currently contains the following: Honda Finance Auto loan $21K high limit. Originated 9/2005 paid off 11/08. In good standing. No baddies. 3 CA's. 1 $756 CA that I finally this week, sucessfully negotiated a PFD. 1 $88 PIF just this month CA that will drop off 9/14. 1 $50 CA that is PIF yesterday but will remain until 1/16. (3 PFD letters and GW letter led nowhere.) All 3 still report as they have not yet been removed because of new payment. I applied for the secured BoA card mentally thinking it was a slam dunk... I moved in April this year so I have 2 inquiries from utilities and an AMEX credit inquiry that shows up on all 3 reports in different names on all 3, plus the BoA referenced above in the past 12 months.
I realize that 2 CA's coming off will improve my score and the 3rd showing paid should also. Have I damaged myself even more with the extra inquiry and then the new Secured card? In my mind the only way for it to rise was the action that I took not thinking of letting the CA's fall off before applying. What else should I be doing to get where I need to be for loan? Any help or insight is appreciated. This is the first time I have actually needed credit in a long while so I'm kicking myself for waiting this long to get it sorted out.
