Score bump for FHA

[Anonymous]

My mid score was 607. I paid down two credit cards, one from 98% ($5400 of $5500) to 80% ($4400 of $5500) and one from 96% ($4800 of $5000) to 76% ($3800 of $5000).

Will this have any hope of getting me to the 620 mark? Or should I dip into savings more, which I really don't want to do.

Also, getting put on a trusted persons card with a long history and low balance, will that help me as well?

Any other advice is appreciated.

Message Edited by joefarmington on 03-12-2009 09:42 AM

[Anonymous]

You probably need to get them down closer to or under 50% to make any big difference.  Plus, an UW may be leary of a first time homebuyer with 80-90% utilization on credit cards.

[john398]

I think he is saying that he paid 5400 of the 5500 bill etc, if thats the case he should be in good shape...

[Anonymous]

No, I think he was right with the 80% utilization - I took it to mean he paid it down to 4400 on his 5500 limit.

But in either case, would be this an issue with the UW if he had enough income that his DTI wasn't above 40%?

[john398]

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@Anonymous wrote:

No, I think he was right with the 80% utilization - I took it to mean he paid it down to 4400 on his 5500 limit.

But in either case, would be this an issue with the UW if he had enough income that his DTI wasn't above 40%?

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Well if his score is not 620 than probably won't make it that far for FHA

[Donna1966]

Joe,

It's possible.  Everyone's file is different. 

I can do almost similiar things to my and DH's credit, and one of our will always go up way more than the others will.  So no one can really tell you.

Also, I don't think that "piggybacking" is allowed anymore.  Someone can correct me if I'm wrong, but last I heard that stopped last year.

[Anonymous]

Authorized user credit cards are still included in your scoring.  Just make sure you do it with close family with positive credit history.  Also, note that there are certain cards that do not report authorized users.

[chartley3]

I just spoke with a rep from Quicken Loans the best way to get to the 620 mid score. Best way is to pay down all credit cards to have around 40% utility showing and wait about 30-60 days to app. Unless you have a some newer baddies you can PFD, the only thing you can do is pay down your balances and time.

[WannaHouse]

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@Donna1966 wrote:

Joe,

It's possible.  Everyone's file is different. 

I can do almost similiar things to my and DH's credit, and one of our will always go up way more than the others will.  So no one can really tell you.

Also, I don't think that "piggybacking" is allowed anymore.  Someone can correct me if I'm wrong, but last I heard that stopped last year.

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This depends on the Fico version being used is my understanding. I know it still works, because I have done it with my DH. Added him to 2 of my cards and it shot him up 50 points.

Now as far as choosing a person. The MOST important is long history, low usage, and high limits.

An example would be your mom has a Discovery card. She opened it in 1979 and has a 50K limit. She has 400.00 on it. She has never been late, or not late in the last 2-3 years. (I WANT this card!!!  LOL) 

This would be a perfect card to be an AU on.

[DallasLoanGuy]

Joe,

Getting added to another card may or may not help. The piggybacking deal stil works. They were going to stop it.. but too many legitimate piggybacks would be negatively affected. Me included. I am an authorized user on one of my wife's cards. We share the responsibility for the bills.... why should I get dinged?

 As far as the score goes, some loan officers can run you thru a fico score simulator and tell you EXACTLY what effect the payments will make.

I suggest you use that resource and not guess. Keeping the extra money in savings may be best.