Are my goals unrealistic?

[Anonymous]

I want to purchase a new-ish car in 6-8 months

and purchase my current home in 8-12 months

I sent out 5 PFD letters a couple days ago (maybe that was stupid) old accounts and I only offered 10-25% of total owed. 

I currently have 10 collections and I'm gonna work really hard to get them removed soon. Next year is dedicated to getting a clean CR.

Tell me im not out of my mind with my goals!!

[ddemari]

How old are the 10 collections? A lot of people have sucess with PFD but I never did espeically with the mid land credit collector types. 

my reports had 3 collections from 2008-2009, all three I paid and settled the accounts but could not get a PFD. the midland credit collection updated every month for years and killed my credit scores until it aged off at the 7 year mark, then I saw a huge rise of 50 points on TU and like 20 on EX and EQ. 

If the collections are very recent, then I think you have hopes of getting into maybe the 650's in a year with all of the fico optimization tactics. 

[Anonymous]

There's only one that's very recent and it's because I didn't return cable equipment. So I'll be doing that tomorrow and then hopefully it will come off.

When you say "fico tactics" what do you mean?

[Anonymous]

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@Anonymous wrote:

There's only one that's very recent and it's because I didn't return cable equipment. So I'll be doing that tomorrow and then hopefully it will come off.

When you say "fico tactics" what do you mean?

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He means getting three or more revolving accounts established, and one installment account. Paying in full on the revolving accounts but leaving a small balance on one. Not applying for credit you won't qualify for (to minimize inquiries), and keeping current on all obligations going forward. 

[Anonymous]

Also - note that on the mortgage forum they will recommend that you don't apply/open any new trade line for about 6 months prior to applying for a mortgage.   So you may want to space that auto loan and mortgage app out a bit.  Pay attention in there too if you are going to buy within a year or so - they are really great for keeping up on new rules, and there are several members that are loan officers, that can kinda point you in the right direction.

Get your three cc's started NOW if you can - even secured will work - this way they have time to age up - get as many baddies off your report as you can - and then a month or two prior to getting mortgage - talk to an actual LO.    I contacted one - did NOT do an application or allow her to pull my reports - just told her what was out there and what my approximate Fico 8s were.   They will use actual mortgage scoers - so you'll want to buy those from MyFico when you get closer too.   That way you know where you are at and it's a soft pull - not a hard one.  

She was able to tell me what had to be taken care of FOR SURE in order to qualify for the loan program I wanted to use.   This gave me a really good starting point, without having to actually app and get denied and then starting over with new inquiries on my reports.

[Anonymous]

Thank you, thank you, thank you guys!!!! You are a world of information! Thank you

[BuckiRob]

Underwriting cretiera is pretty tight right now for mortgages unless you are a first time buyer without any current dings...  

I keep hearing that most underwriters are looking for a credit score of 660 or higher for an origination loan.  Given where yours are right now (assuimg those are accurate)  You are being unrealistic.

#2  they DO NOT like to see a lot of recent major purchases with credit.  Were I you... Id  be far more motivated to get the house and THEN get the car

[Anonymous]

Thank you BuckiRob! I am a first time buyer thankfully! but my 1st priority has to be the car for a number of reasons. But, I'm going to wait 6-8 months after purchase of the car to secure a loan. From things I've been reading that seems like a safe bet.