Need Immediate Help!

[Anonymous]

We obtained a pre approval back in late december, no credit pull he had me send over my 3 credit reports from myfico... anyways, my credit was worse then, than it is now. Anyways, my MORTGAGE scores are:

511

562

552

Problem affecting my score:

11 Charge offs from almost 2 years ago, some show a balance, some are 0. 

3 Collections that are 5 years old due to identity theft (sent in police report last week hoping they will remove, midlan refuses to remove despite BBB and CFPB complaints)

1 Unpaid Verizon Collection $1100 but they are lowering the balance to $500 due to discrepancies (I tried to ask for a pay for removal)

My income is $118,000 before my yearly bonus ($31,000 bonus yearly)

I have two years of on time rental payments with my current landlord (rent of $2795)

I have a auto loan that has never been late in 3 years (payment $460)

Then I have $130,000 in student loans in deferrment (I am a doctorate student)

SO, even though my mortgage guy is trying to act like everything is positive, I know my credit still sucks. Some of those charge offs are still reporting monthly. Four of them are synchrony bank, two are capital one, two are pen air federal credit union (credit card). 

What is my best move of action now. I have already disputed everything and removed TONS of stuff, there are two medical collections pending removal, I have the letter from them that they are removing.

Should I pay some of the charge off down? Right now I know it's hurting my utilization. My mortgage guy says not to pay anything off until they would instruct me.... Just hate getting my hopes up if it's entirely NOT going to happen......

I really want my midscore atleast 580.... So about 30 more points needed at a minimum.

(little more background, we live in California but moving to Missouri in June) The loan will only be in my name with my income stated above. 

[frugalQ]

I recommend having a direct and upfront convo with you LO. Ask him to cut the BS and be real with you about the possibilities.

I would not pay anything without the LO approval or unless I plan to put the whole process on hold until I can get my scores up.

Good luck to you

[Anonymous]

I have told him, he said he does FHA loans down to 500 credit scores. I google and read reviews and this company has nothing but A+ with the BBB and great reviews. Maybe he's telling the truth.... Company is American Home Lending LLC and the broker I am talking to is Mario Hart he is the owner.

[Anonymous]

at $118k Income, you should be able to pay off those baddies and also lower utlization in one Months Pay and that will boost your credit Higher. FHA is abit forgiving in regards to credit.

[ktl72455]

I had 2 cap 1 charge off's that reported monthly as well. They reported the Credit limit as well as the balance and it was hurting my UTL with also hurt my scores. I paid them off and my scores came up. And it looks better on your part they are paid off. So look to see if the credit limit and balance are being updated monthly. If they are, thats holding your score back a little.

Look at your DOFD and see if any are due to fall off your credit report in the next 3-6months. If they are you can ask TU and EX for a exarly exclusion. EQ is maybe 2 mo early.

[Anonymous]

So here are my current charge offs, if anyone has any recommendations on what would help to increase my score the best, PLEASE provide input!

Carmel Financial original contract amount $1800, they have a balance now on my report for $5614. It states charge off, but they are updating it monthly, so it says I have been 90+ days late every single month for the past 5-6 years. This one is out of SOL, but not quiet out of credit reporting yet, I think it falls off at the end of this year.

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Barclay card, shows balance of $2841, charged off, shows 12 times 90 days late as of February 2015, DOFD 7/2014, I was trying to recover the card but they only gave me 3 months of $30 payments but then increased to over $400)

Capital One, shows balance of $344, charged off, shows 18 times 90+ late as of March 2015, DOFD 8/2013

Capital One, shows balance of $931, charged off, shows 18 times 90+ late as of March 2015, DOFD 8/2013

Credit First, shows balance of $1787, charged off, shows, DOFD 08/2013

Syncb / Lowes, shows balance of $891, charged off, shows13 times 90+ as of Jan 2015 DOFD 9/2013

Syncb / Amazon PLCC, shows balance of 0, DOFD 9/2013

Synb / Walmart, shows balance of 0, DOFD 9/2013 (shows no payment history)

Sync / Paypal, shows balance of 0, DOFD 10/2013

Pen Air Federal Credit Union, shows balance of $517, charged off DOFD, 1/2014 (shows 12 times 90+ late as of Feb 2015)

Pen Air Federal Credit Union, shows balance of $2249, charged off DOFD 12/2013 (shows 12 times 90+ late as of Jan 2015)

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(Still pending two medical collections to be removed, I have the letter from them for removal, it just hasn't been removed so hopefully score will go up more once they are gone)

Then Collection from Midland Funding for the walmart account, $980, date assigned Sep, 2014

Anyways, I can be in a position to pay for a paid in full etc, whatever will help my score increase, or should I just wait and see what mortgage guy tells me to do? He saw all these accounts back in December along with a million others (that I had removed) and gave me a pre approval... I'm just scared to death when I go to do the official application at the begining of next month I'll get a big fat NO.

Current MORTGAGE scores:

Experian (as of 3/13) 552

Equifax (as of 3/16) 530 - Just went up from 511

Transunion (as of 3/13) 562

I really need to get that middle score to atleast 580 as soon as possible!!!!!!

Here is my GOOD other info:

Pen Air Federal  Credit Union Auto Loan: Original Amount $25,324, current balance $17,748, date opened 11/2011, never been late

Capital Bank: secured $200 card, date opened 2/2015, never late, keeping it under 3% utilization

Consolidated Student Loans: $140,000, never been late, in deferrment (don't ask, I'm a doctorate student, that's where the money went)

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When I do a score simulator it tells me to pay down $7,392 of my debt (I am assuming it's talking about the charge offs) then my score will raise by 100 points.

I just don't want to pay something and it lowers my score, do not need that.

[ktl72455]

the charge offs are still pretty fresh and unless the balance keeps going up each month, paying it off wont help your score. The reporting 90+ days late will happen for the full 7 yrs.  That type of updateing isnt hurting your score. The number of charge off's is.

Pay your CC balance down ALOT will help some.

And I have seen it mentioned theres a difference between a Broker  and a Lender. Maybe some one can chime in on that as well.

[Anonymous]

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@ktl72455 wrote:

the charge offs are still pretty fresh and unless the balance keeps going up each month, paying it off wont help your score. The reporting 90+ days late will happen for the full 7 yrs.  That type of updateing isnt hurting your score. The number of charge off's is.

Pay your CC balance down ALOT will help some.

And I have seen it mentioned theres a difference between a Broker  and a Lender. Maybe some one can chime in on that as well.

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The only open charge card I have only has a $3 balance, so what should I do?

[ktl72455]

Are any of the charge off balances increasing each month beyond what the original credit limit was for? I know with mine capital one kept adding 5.00 a month to my balance. 

If you have nothing to pay down ( CC) I'm not sure there is much you can do, hopefully some one can chime in if they see something.

[Anonymous]

I don't believe any of them have balances that are increasing other than that stupid Carmel Financial, I am in disputes right now with the BBB regarding them. They charged this account off years ago, but continue adding tons of interest and fees to the account to where it has tripled in the amount. I have never received a monthly statement from them either, so they are violating the laws... Waiting to hear the most recent update from BBB regarding this, they tried writing back once saying "we are still allowed to report this to the credit bureau if she would like to make a payment please contact us". I guess they think I'm stupid, so I responded how they are violating the laws by charging the interest etc when it is charged off.

I may copy that post over to the rebuilding page to see if they have any input on that....