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I did post in a different section but this is more of a home loan question, so I wanted to see what people here had to say.
I'm trying to decide my best course of action. I want to buy a house by the end of the year but want to have a credit score of 700. Currently EX - 620 (fako) EQ - 658 (Fico) TU - 630 (fico). I posted a summary of my credit below. I know the collection is a big issue, but that will be there for the next 7yrs. (GW didn't work) However, I read some CA won't validate an account with a $0 balance. So maybe a dispute after the fact will work, is this true?
myfico keeps telling my credit limits are too low and it's hurting my score. My dilemma is if I ask for increases it will hurt my score (4 inquiries this year) But if I get the increases will I gain a net increase? From what you see below, what do you expect my best next action should be?
Store Cards:
Macy's - bal -.77 limit $1500 was $100 (just raised last month not reported) 3yrs old (one 2yr old 30day late just removed, not reported yet)
Chevron - bal $63 limit $300 4 yrs old
Fingerhut - bal $360 limit $1400 (not reported yet) 4yrs old
Gettington - bal$119 limit $500 3mo. old
Walmart - bal $0 limit $300 4yrs old
Major CC:
First premier - bal $30 limit $425 5yrs old ( one 4yr old 30 day late)
first premier - bal $0 limit $475 5yrs old ( one 4yr old 30 day late)
HSBC - bal $35 limit $475 ( just received a limit increase ) 3yrs old
Merrick Bank - bal $400 limit $650 6mo old ( paying $200 on this before next reporting)
Loans:
20k in deferred student loans
$6k car loan (paid off 2yrs ago)
$2500 personal loan 6mo old (paid to $1800)
Collection:
One collection on all 3 CR $575 6mo old ( just paid $260, not reported yet)
@dekelley1 wrote:I'm trying to decide my best course of action. I want to buy a house by the end of the year but want to have a credit score of 700. Currently EX - 620 (fako) EQ - 658 (Fico) TU - 630 (fico). I posted a summary of my credit below. I know the collection is a big issue, but that will be there for the next 7yrs. (GW didn't work) However, I read some CA won't validate an account with a $0 balance. So maybe a dispute after the fact will work, is this true?
myfico keeps telling my credit limits are too low and it's hurting my score. My dilemma is if I ask for increases it will hurt my score (4 inquiries this year) But if I get the increases will I gain a net increase? From what you see below, what do you expect my best next action should be?
Store Cards:
Macy's - bal -.77 limit $1500 was $100 (just raised last month not reported) 3yrs old (one 2yr old 30day late just removed, not reported yet)
Chevron - bal $63 limit $300 4 yrs old
Fingerhut - bal $360 limit $1400 (not reported yet) 4yrs old
Gettington - bal$119 limit $500 3mo. old
Walmart - bal $0 limit $300 4yrs old
Major CC:
First premier - bal $30 limit $425 5yrs old ( one 4yr old 30 day late)
first premier - bal $0 limit $475 5yrs old ( one 4yr old 30 day late)
HSBC - bal $35 limit $475 ( just received a limit increase ) 3yrs old
Merrick Bank - bal $400 limit $650 6mo old ( paying $200 on this before next reporting)
Loans:
20k in deferred student loans
$6k car loan (paid off 2yrs ago)
$2500 personal loan 6mo old (paid to $1800)
Collection:
One collection on all 3 CR $575 6mo old ( just paid $260, not reported yet)
May I ask why you are looking for a 700 score? Are you planning on going conventional or FHA?
Well, the collection is new. That really hurts. To top is off, paying it to 0 will not help your score. You need to send a GW letter to try to have that removed. What collection company is it through?
Your UTIL isn't bad at all, but its not really great either. I would work on getting all of the cards to reports at 0, and one to report between 1-9 percent util. You will see a point increase there.
Essentially, that is all you can really do to raise your score. Paying on installment loans doesn't yield point increases, only decreases if you default.
-scott
Thanks for the response, It's through Columbia Recovery Group. What about the old 30day lates, do you think they would help my score if removed or are they too old?
Oh, and I'm waiting to get a 700 for better rates.
Anyone have advise for me?
Well if you are interested in increasing your credit limits I would call the cards ask if they do a soft pull or a hard pull to get the increase. Most places do a soft pull if you are already an established card holder. I did that and was able to get my cli with just soft pulls.
As far as gw'ing you just have to keep at that. Send a letter a week if you have too. Eventually the creditor will get sick of hearing from you and remove it.
@dekelley1 wrote:Oh, and I'm waiting to get a 700 for better rates.
Well, that is why I was asking if you were planning on going FHA. I went FHA and I found after working to get my score over 700, that if you qualify for lending on an FHA loan the interest rates do not change with your score.
-scott
@rckstrscott wrote:
@dekelley1 wrote:Oh, and I'm waiting to get a 700 for better rates.
Well, that is why I was asking if you were planning on going FHA. I went FHA and I found after working to get my score over 700, that if you qualify for lending on an FHA loan the interest rates do not change with your score.
-scott
Really?? I didn't realize that. Yes I am going for a FHA loan. So that means I only need to have my middle score at a 650?
@dekelley1 wrote:
@rckstrscott wrote:
@dekelley1 wrote:Oh, and I'm waiting to get a 700 for better rates.
Well, that is why I was asking if you were planning on going FHA. I went FHA and I found after working to get my score over 700, that if you qualify for lending on an FHA loan the interest rates do not change with your score.
-scott
Really?? I didn't realize that. Yes I am going for a FHA loan. So that means I only need to have my middle score at a 650?
You can qualify for FHA techincally with an 580, but most lenders want 640 or better. My mid-score was 686 and my FHA locked rate was 3.615%
-scott
I totally agree get your credit cards paid off and let one card report 1-9%, in addition I think you will have to have 12+ mo with no lates, so you might have to let that new collection age 6 more months in order to qualify for FHA. I think mid score of 650 will be just fine too