Brand New Start

Anonymous · ‎02-09-2013

Hi Everyone!!

I recently rehabilitated my defaulted Student Loans. I'm so glad that I'm past that phase now. However, I noticed that the current balance exceeds the original loan amount, and this is hurting my credit score. So, I'm attempting to consolidate my loans in hopes that those "over-utilized" TLs show a zero balance. I'll keep you all posted.

I pulled all three credit reports, and found that each derogatory mark had some sort of inaccuracy. So, I've disputed them all. I should find out in about three weeks what the outcome is. I have one judgement, and one major credit card collection account. I'm hoping the dispute removes them from my credit report. In case it doesn't, I have a PFD letter ready to go.

My goal is to purchase a home before June. When I pulled my credit scores on 1/30/13, they were EQ 591, EX 577 and TU 537. I need at least a 640 to qualify for an FHA loan. Since my disputes, I've noticed a few changes. My mortgage consultant pulled a report from TU that showed a 563. That's great!! I also show that Credit Karma is reporting a 583, but the MyFico Score Watch is reporting a 629. I think I'm on my way. The defaults showing on my Student Loans have yet to come off my credit report, so I'm hoping that the score jumps when they do. And then, when I consolidate, I hope it jumps further.

I'll keep y'all posted as to how things turn out, but I think I'm on the right track. With the house I want, and the student loans and car payment, I should have under a 30% Debt to Income Ratio. It's been a long time coming, but I think I see the light at the end of the tunnel.

Thanks for all your help and support. It feels good to get this bad mojo behind me.

ranjen1 · ‎02-13-2013

Im in the same boat as you. We are trying to get our scores up to 640 so we can qualify for an FHA. Good luck to you! I have gotten a few things off my credit reports just by disputing with either the BBB or with the credit bureaus. Equifax is the easiest I think to get stuff removed. Transunion is a bit pickier.

LENDER PULL 02/13/13 EF 574 TU 596 XP 554
LENDER PULL 03/21/13 EF 632 TU 611 XP 589

GOAL: 640 FOR USDA

Junejer · ‎02-13-2013

MOU2BT, where did you get those scores? Don't rely on FAKO scores as your barometer. You need to know where you stand from a FICO perspective and work from there towards your goal of 640. After all, the scores that your lender will be looking at will be FICO scores.