02-16-2013 07:26 PM
I need some advice/input on my current situation. I'm planning on applying for a mortgage in the next couple of months but I'm afraid USDA will not approve me based on my current credit standing. My current FICO score is 623 (EQ)/630 (TU). I have two CA (both are paid) but one is less than 6 months old. I have installment (17%) and revolving (21%) accounts. Total utilization is 19%. I am working to get my utilization down to 9% or less on the revolving accounts. Do you guys think this will help my score? Any ideas on whether or not the recent collection will keep me from being approved?
02-16-2013 10:43 PM
the collection will be dependent upon the lender. if you take your utilization down it will help. Not sure how much though. If you have enough time maybe you can PFD on the collections (also if you have the money). I'm doing a USDA and we're completely ignoring my collections.
02-17-2013 08:36 AM
USDA and FHA loans typically require no lates, collections, etc, within the last 12 months. Your utilization is already fairly low, so I don't think you'll see big score increase by paying the revolving accounts down. The recent collection is what's really lowering your score.
Copyright ©2001-2013 Fair Isaac Corporation.
All rights reserved.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions based on Experian or Equifax data (additional FICO® Score versions based on TransUnion data are not currently available on myFICO.com). Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.