@courtney091082 wrote: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
Well from my reading I've come to the understanding the new FHA rules state collections only has to be resolved if accumulatively they are $1000 or over, is that not correct?
Starting Score: 615
@dekelley1 wrote:
@courtney091082 wrote: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
Well from my reading I've come to the understanding the new FHA rules state collections only has to be resolved if accumulatively they are $1000 or over, is that not correct?
Sure the amount might be less thank $1000, but the time period is the problem. You must have 12+ mo of clean history for an FHA loan. That's pretty standard, and as far as paying off the collection your best bet is to get a PFD so it is deleted and no longer bringing down your credit score, or pay it off then GW it.
@Anonymous wrote:
@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)
I would choose 4 of those store cards (one of them being the Macy's-big deal that it has the highest limit), make sure they are paid in full, and just close those accounts. There is no need for them. They will hurt you more than help you. Anyone reviewing your report thinking about lending you money will see that 1) You have a bunch of low limit cards, 2) that they have been opened all within the last few years, 3) that you can go run up these cards as soon as you are short on cash. I am sure when you score is calculated that 1 & 2 that I mentioned are figured into the equation.
Next, I would close one of those First Premier cards, then I would cut up the other First Premier card & leave that account open. Then pay off the Merrick & cut up the card. Leave the account open, just dont use it.
Make sure you pay that personal loan on time.
You're score will be golden shortly.
Hello, thanks for the reply
I'm reading what you have to say and it's in stark contrast to the education I've gained on myfico. From what I understand closing my credit card accounts will hurt me even more then asking for a limit increase. Any one else have an opinion on this?
I locked this thread by mistake and I apologize to the OP.
Sometimes after looking at several hundred posts I become more confused than usual. 
You are correct. Don't cut up those cards as they will certainly affect your age of credit. With the info you provided, you will be fine! Good Luck to you!
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@Catacam wrote:You are correct. Don't cut up those cards as they will certainly affect your age of credit. With the info you provided, you will be fine! Good Luck to you!
@Catacam Thanks for the confirmation. What about getting CLI on my CC's? The problem I've ran into over and over again is my limits are too low.. Do you think it would hurt me more then help me if I asked and received CLI on.....4 of my cards?
You can always see about getting CLI's but I would make sure it is a soft pull on credit so you don't lose any points for inquiries. I'm 99.9% sure that your score does not factor in low credit limits, so I'm unsure of why it is telling you that, unless you are using Fako scores, which I believe do factor in your credit limit information, but a lender would not be using a Fako score for your loan. CLI will help with your utilization, especially if your balances are running high!
@Catacam wrote:You can always see about getting CLI's but I would make sure it is a soft pull on credit so you don't lose any points for inquiries. I'm 99.9% sure that your score does not factor in low credit limits, so I'm unsure of why it is telling you that, unless you are using Fako scores, which I believe do factor in your credit limit information, but a lender would not be using a Fako score for your loan. CLI will help with your utilization, especially if your balances are running high!
I know credit limits are not counted in your credit score, but when I do manual reviews or check myfico I'm always being told that my credit limits are too low, or I was denied because I don't have experience with high credit limits. I thought I was doing pretty good on my utilization, it's around 30% now, but it used to be 80%.