Please read I'm desperate for opinions. We close aug 7th!

[Anonymous]

We have been working really hard at repairing my husbands credit. I was sick with cancer and he dropped into the 400's. We are now doing much better and just got approved for a large mortgage in Feb. Here is my problem. We are building and they need to do an updated credit report, I always use My Fico and run it first. Our "mortgage" score was a 644 in Feb but when I ran it yesturday it was down to a 596 which means no mortage for us. It happened because a collections from years ago just popped up on his report last month. I have paid it and they agreed in writting to delete it. I know they will because they have deleted all the other ones. Will this put his score back to where it was? We have 3 credit cards with no balances and a store card with no balance. Our current two mortgages and only one car payment as we paid off one car in Dec. Also, transunion seems to have not removed any of the collections account from this collection company as they were told to do, so I got a letter from the collections company telling them they should have been removed and sent it to transunion certified mail. I know they now have 30 to 45 days to remove them all. We at least need to get his score back to a 620 on the mortgage score. Can you give me you opinion on this? Our Score 8 ficos are 670 660 644?.these dropped a lot as well. Lender thinks it will be ok and won't pull it until this time next month. But I am freaking out!!

[dursty87]

Sorry to hear about the collection popping up. Good news is that the CA agreed to PFD which is great! It may take the CRA's up to 30 days(plus mailing time) to remove but you shouldn't have any problems if you have it in writing.

Also, having no balances on any of your cards is not good for scoring purposes - you get dinged for 0% utilization. For scoring purposes, you should let 1 card report a small balance (anywhere between 1-9% on that one card, 5% works best for me but YMMV) and keep the others at 0.

Good luck! Please keep us updated.

ETA - with the collections being removed your scores should be where they were prior to the collection popping up. 

[Anonymous]

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@Anonymous wrote:

We have been working really hard at repairing my husbands credit. I was sick with cancer and he dropped into the 400's. We are now doing much better and just got approved for a large mortgage in Feb. Here is my problem. We are building and they need to do an updated credit report, I always use My Fico and run it first. Our "mortgage" score was a 644 in Feb but when I ran it yesturday it was down to a 596 which means no mortage for us. It happened because a collections from years ago just popped up on his report last month. I have paid it and they agreed in writting to delete it. I know they will because they have deleted all the other ones. Will this put his score back to where it was? We have 3 credit cards with no balances and a store card with no balance. Our current two mortgages and only one car payment as we paid off one car in Dec. Also, transunion seems to have not removed any of the collections account from this collection company as they were told to do, so I got a letter from the collections company telling them they should have been removed and sent it to transunion certified mail. I know they now have 30 to 45 days to remove them all. We at least need to get his score back to a 620 on the mortgage score. Can you give me you opinion on this? Our Score 8 ficos are 670 660 644?.these dropped a lot as well. Lender thinks it will be ok and won't pull it until this time next month. But I am freaking out!!

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From my experience, yes, his score should rebound once the collection disappears. I lost 104 points when Bank of America reported a CO to the CRAs. While it took several phone calls and a complaint to the CFPB, BoA conceded that the CO was erroneously reported to my account and requested the CRAs delete it. Once that happened, the CO disappeared from my reports within a matter of days and my score jumped right back up to where it was before. It didn't take the CRAs 30-45 days to remove it, either. It was less than a week from the time BoA requested the delete that it dropped off all 3 of my credit reports.

I know you got a letter from the CA saying the collections should have been removed, but the CA needs to report that to the CRAs directly. Once they do that the TLs should be removed pretty quickly.

[Anonymous]

In my experience, TU is pretty quick with removing things when they have been disputed. We had 2 things that we disputed directly to TU and they deleted them within a matter of days. I started with trying to get the CA to remove it and they were dragging their feet so I ended up just disputing it with TU. Hopefully the letter will be enough for them to remove it, but they may require you to open a dispute. Even if that's the case, like I said, they removed it within a matter of days. Good luck and don't stress too much! Your score will jump back up once it's gone. 

[Anonymous]

Try a Rapid Rescore. We would see them all the time in situations like yours. Google for it, I am hesitant to recommend a specific provider as I haven't personally done one, but this will solve the issue quickly... For a fee.

[redbeard]

Rapid rescore won't work in this case, or at least I don't think it will. It is great when you need a balance to update, which in turn will update a credit score.

Not sure they can help with making a reported charge off disappear though. Probably help with making it show paid if that was the situation, but I doubt they can expedite a removal.

To the OP: You will likely get at least 10-15 points, probably more, by letting a small balance report on 1 card. This might solve the problem.

Also, if it is only reporting on TU, but the other 2 have sufficient scores, you should be okay. Mortgages usually use your mid score, so one score below 620 won't be the end of the world.

Dan

[Anonymous]

The 596 is his middle score now that the new collections showed up on his CR. It was 644 before that. They are removing it but I really need opinions on if it will go back to what it was before that or at least a 620 so I can still have my mortgage. We are cutting it really close as this is a build to buy situation and if we dont get this loan we lose the 30,000 dollars we put down in cash for them to start the build.