Mortgage loan- need 20 points

[Anonymous]

Hi 

Right now my middle score is 640 for mortgage and construction is going on. I need to improve another 20-40 points in 3-4 months. Closing going to be on May . So lender will pull again by end of march or april.

Here is my profile

Here is my credit profile

Credit cards

Capital one $9/$1500
capital one $0/$600
capital one $0/$600
capital one $807/$1600 (authorized user)
Chase $0/$1000
BOA $3500/$7000 (Closed account paying every month $140)
BOA $1500/$3000 (Closed account paying every month $55)
BOA $0/$1000 (authorized user)
BOA $179/$2500 (authorized user)
Creditone $22/$450
Credit union card $3533/$8000
JCP $0/$1000
Target $0/$600

Installment Loan

Auto $16500/$17900
Auto $3800/$6200
Personal loan $9200/$10500 (pay off amount $6000)
Personal loan $2600/$3500 ( pay off amount $2000)

Experian
Fico 8 score - 696
Mortgage score -661
Collections - 0
Late payments - 2 accounts (13 months ago)

Equifax

FICO 8 score - 660
Mortgage score - 629
collections - 1 ($217)
Late payments - 2 accounts (13 months ago)

Transunion

FICO 8 score - 677
Mortgage score - 640
collections - 1 ($217)
Late payments - 2 accounts (13 months ago)

I tried to do PFD for collection which didn't work out for me.  What could be the best possible ways to improve my middle score(Transunion) to 660. So that i will get less interest rate compare to 640 mark

Any inputs welcome

[bdhu2001]

. . .BOA $3500/$7000 (Closed account paying every month $140)
BOA $1500/$3000 (Closed account paying every month $55)
BOA $179/$2500 (authorized user)
Creditone $22/$450
Credit union card $3533/$8000

Can you pay off all of the above accounts and make sure they report $0 when they pull your next report?  If the closed accounts aren't collections then it should give you a boost. Even if you're AU only one RV should have a balance and that balance needs to be less than 10% (max under 30%).

[Anonymous]

Hi 

 I don't have that much money to pay all the accounts. I paid $22 credit one card. 

If i reduce closed accounts amount to less than 30% will it help. 

Or paying off $2200 towards one personal loan which i paying about 29.99% interest rate will boost some score. So that it will reduce my DTI ratio as well. I'm paying $150 for that now.

[Anonymous]

Those personal loan balances are likely killing your scores depending on how they are reporting, not personal loans report the same. Depends on the lender.

Keep trying to pfd the collection - go to the rebuilding forum for help. Stay persistent.

Get yourself OFF the AU accounts, you don't need them and the balance reporting is probably hurting your score.

Last, are you going FHA or conventional? I don't think FHA is as sensitive to scores like conventional is.

[cartwrna]

Paying down the personal loan will not help your score much if at all. The big place to get points is paying that credit card utilization down. If you were to have all but one paid off I'm sure you would get the 20+ points you need. Pay off the closed BoA as its killing your utilization, since it no longer has a limit (closed). Pay off the $179 BoA your an authorized user on and have them not charge anymore, or remove yourself from it overall. You shouldn't see any score change due to your amount of other cards, unless it drastically helps your AAoA. If possible pay the AU Capital One card as well and don't let them charge anymore on it (I know easier said than done since not your card, but they are killing your score)!

[cartwrna]

Also, pay your $9 capital one card even, you want a balance on as little cards as possible!!!

[Imperfectfuture]

My goal is to have balance on only three cards.

[cartwrna]

I have a balance on two, one I just paid off thankfully. My score was good with the balance though. Sometimes it's just not financially possible to pay them all off at once, but the closer you get the better!

[bdhu2001]

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@cartwrna wrote:
Paying down the personal loan will not help your score much if at all. The big place to get points is paying that credit card utilization down. If you were to have all but one paid off I'm sure you would get the 20+ points you need. Pay off the closed BoA as its killing your utilization, since it no longer has a limit (closed). Pay off the $179 BoA your an authorized user on and have them not charge anymore, or remove yourself from it overall. You shouldn't see any score change due to your amount of other cards, unless it drastically helps your AAoA. If possible pay the AU Capital One card as well and don't let them charge anymore on it (I know easier said than done since not your card, but they are killing your score)!

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+1.  

Without funds, your best option is time, but your on a short time-frame.  That Cap One AU is also hurting.  If these AU cards aren't giving you massive AAoA, take your name off and pay all your RV to $0.  Then pay as much as you can to get your closed accounts to less than 30%.  I show that you need to pay $1213 on your Credit Union Card to get it to 29%  You'll still have two closed accounts reporting a ballance so until you pay them off, I don't think the $0 reporting ballance will hurt you.

I know it costs money, but in your shoes, I'd pay for the subscription and use the simulators to get a better idea of what will provide biggest bang for buck.  Even if you have to send a letter or e-mail weekly to the CEO, work on getting that collection off.  

[Anonymous]

Are you going FHA? I'm surprised your lender is telling you you need to go higher than 640.