Bad Creidt House Loan

[Anonymous]

Hi, i just got my credit score last week from a house lender, equifax - 600, transunion 607, experian - 637.  I need a median of 620 to get a house load.

I have had about 9 inquires last 2 years from getting a new car, that was a mistake.  I have 3 collection accounts - 1 paid - 2 unpaid.  2 accounts in good standing / car load/student loans, both on time, missed a student loan payment about 1 year ago.

I about 4 years ago had a charge off acct with cap 1 - paid in full

5 years ago had another charge off - paid in full

I just recently signed up and got a secured creidt card this month, it will first report in September, how fast do you think my credit score will rise to 620???

[Anonymous]

OH and i forgot to mention.  Car loan, and student loan are only lines of open credit i currently have.

Everything else is from 3 years plus ago.

How quickly will my score rise with this secured card reporting next month?

[Shogun]

Hello and welcome to the forums.  First off it's generally a bad idea to open a new account within 6 months of a mortgage.  That being said let's look at where you are.  First off the inquiries only affect you for the first year.  You have 3 collections.  The paid one you need to send them a GW and see if you can get that off there.  The 2 unpaid, can you afford to do a PFD?  This will be the most effective way of increasing your scores.

[westo12]

How old are your collections, who are the CA's? 

[Anonymous]

Collections are from 2008 & 2009.

Charge offs from 2007 & 2009.

Mortgage guy told me to open a Secured Credit card would be best way to raise score.

the old charge off's were both revolving acct's.

My only issue i think what is keeping my score low is i don't have any revolving acct's.

Shouldn't adding that revolving acct make my score jump up a little bit.  I only need 13 pts to hit a 620.

[Shogun]

You could actually have a drop initially due to the fact that:

1) You have added a new inquiry

2) This will drop your AAoA

Plus you will probably have to explain the new account when they go to approval.

Yes adding a new account will help your score over time.

[westo12]

You should start sending out GW letters for the paid collection & chargeoffs.   Also negotiate PFD's for the 2 unpaid collection accounts. 

[Shogun]

Word of advice.  Be careful not to get a dispute on your CR.  And if you have them on now, get them off.   You will generally have to have these off before approval.