Previously declined for loan, when to try again?

[jtbrush]

Then - declined with a credit score of 626. At the time there were 4 previous bills in collections (about 2000-3000 dollars in debts), credit cards were near max, and only on the job for around 6 months. (Military and had just returned from Iraq within the year) 

Now - Paid off all bills in collections, been on the job for over a year, still in military but reserves, credit cards are still close to max (How much should they be paid down to percentage wise  - How much will this change credit score?)

 Will the credit score have changed much with the adjustments that have been done already? 

What are the chances of getting a home loan for $100,000 - $150,0000 (In Ohio if that matters) with a decent APR with a credit score of 626-640 with a gross income of $50,000 a year with no car payment or any other large deductions from pay?

[BrianB_The_Loan_Professor]

If you got rid of the collections you should be fine

the time on job helps too - 

I dont see anything there that would stop a loan from going through now?

Worst case you apply and get denied you will find out what your scores did and see what else you need to do to be eligible

I honestly think you will be fine though

B

[CAnNY]

For optimum score you should have all cards report a balance of $0 except for one. Have the one card report 9-10% of its credit limit. If this is not possible for whatever reason then get them definitely below 50%, or below 30% if possible. 

It would be in your best interest to try and get the collections deleted. It might serve to be a great score booster. Since you already paid them your chances may be slim depending on what type of coll. Go to the rebuild section and see what you find to assist you. 

BEST OF LUCK!

[ezdriver]

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@CAnNY wrote:

For optimum score you should have all cards report a balance of $0 except for one. Have the one card report 9-10% of its credit limit. If this is not possible for whatever reason then get them definitely below 50%, or below 30% if possible. 

It would be in your best interest to try and get the collections deleted. It might serve to be a great score booster. Since you already paid them your chances may be slim depending on what type of coll. Go to the rebuild section and see what you find to assist you. 

BEST OF LUCK!

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Because credit scores are a point-in-time metric, reducing the utilization as much as possibe before the lender pulls your credit again would definitely help. That and taking care of those collections should set you up for mortgage approval the next time you try. I'd recommend that you let 30-60 days of time go by before having your credit pulled again.

Please come back and let us know how things are shaing out for you.