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Good Afternoon,
<br>I have been working at building my credit back up for quite some time and have had some success. I was approved through my Credit Union for a Jumbo mortgage at 95% but now told me they cannot find anyone to write the mortage insurance under 700. <br>My middle score is stuck at around 675 and needs to be at 700 for the mortage insurance. At every turn I get another road block. <br>The bad: BK in 11/2004, 2 x30 days late car loan 2009, paid judgement 2009, paid collection 2012 that happened because I had a major health event, but paid it as soon as I found out about it and they are stubborn about deleting it. <br>The good: 5 years on the job, $150k+ inc, auto lease, bank credit cards, some store cards no payments or negative events since that paid 1 collection in 2012. How can I get my score up 20 - 30 points to get mortgae insurance. I have been cautious not to apply for higher credit limits and get a hard pull, should I try for higher limits? Would it be advantageous to pay everything to zero, I do every month anyway but do it after the statement is printed. <br> I'm sorry for the rant but my head is swimming I have this carrot dangling in front of me to get the house of my dreams but I have this last roadblock. Any help from mortgage pros would be greatly appreciated.
Believe it or not, it just might be as simple as paying off every credit card balance to zero except for one credit card balance and have it report less than 10% of your credit line. Utilization is a huge componet of the scoring formula. Does your LO have access to a score simulator?
What are your card limits and balances? It is very important that the credit card balance report as zero. It will make a large difference in your score. All should report zero but one should have an extremely low balance. This will optimize your score
Just my example I guess it could vary depending on other factors but if you have the extra cash I would pay down your credit cards to lower you utilization ratio.
I paid my cards down, I only have 2, one down to $0 and the other with a $100 balance and awaited the balances to update (this can be the tricky part as when you are pressed for time in escrow they usually update 2 days after the billing cycle closing date).
Experian was quicker to update and TU and EQ were lagging in my case and took about 15 days after the billing cycle close date to reflect on my FICO. My scores jumped significantly as the simulator predicted.
TU From 688 to 722
EQ From 678 to 699
EX From 667 to 695
I wish you luck and hope it all works out!