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Current Score: 632 Need: 640+

Established Member

Current Score: 632 Need: 640+

We are trying to get USDA Financing. DH's current score is 632. Needs to be at 640 or above. 

 

His credit report has:

 

- 1 30 Day Late in March 2010

- 1 Collection (PAID) from 2007

 

He has 2 CC's. 

 

- One JUST had a balance of $432 with limit of $500. Just paid it down last night to $45. Which is about 9% utilization. 

- Other CC has a limit of $5,200 and balance is $5,043.  Before Citi reports I will pay it down to $4,778. Should I try and get it to 89% utilization? It would be at 91% otherwise. 

 

Just need 8 pts!! Any help!

Message 1 of 7
6 REPLIES
Regular Contributor

Re: Current Score: 632 Need: 640+

Pay as much down on Citi card as you can - the 89% Util is def having an impact on his score.

 

I think the biggest problem that you're going to have is the fact that he has a 30 day late from this year.  From what I understand, with a USDA loan you can't have any late payments for at least 12 months prior to applying.  I'd talk to your LO asap to check. 

Message 2 of 7
Established Member

Re: Current Score: 632 Need: 640+

OOPS, I meant 2012*****

 

No lates from past 12 months!

Message 3 of 7
Established Member

Re: Current Score: 632 Need: 640+

BUMP!

Message 4 of 7
Valued Contributor

Re: Current Score: 632 Need: 640+


wakefield622 wrote:

We are trying to get USDA Financing. DH's current score is 632. Needs to be at 640 or above. 

 

His credit report has:

 

- 1 30 Day Late in March 2010

- 1 Collection (PAID) from 2007

 

He has 2 CC's. 

 

- One JUST had a balance of $432 with limit of $500. Just paid it down last night to $45. Which is about 9% utilization. 

- Other CC has a limit of $5,200 and balance is $5,043.  Before Citi reports I will pay it down to $4,778. Should I try and get it to 89% utilization? It would be at 91% otherwise. 

 

Just need 8 pts!! Any help!


Pay the 1st credit card to zero. If you are going to show such a large balance on that other card, this one should def show zero. I think you would get the most potential points by having that card at zero. I doubt it will make much impact.. Although I had a better score with 3 cards showing zero and one showing 7000 then I did when I had 4k of debt spread out over the same cards, with the same limits.

 

It is hard to say tho. That Citi card is killing it big time.

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 09/14: TU: 784 | EQ: 752 | EX: 784
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession


Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $13900, Citi/Home Depot $8500, Capital One Cash Rewards $3500, BOA $7500 Total Utilization: 3%. AAoA: 2yr, 9mth. INQS: 1 TU, 1 EQ, 3 EX
Message 5 of 7
Established Member

Re: Current Score: 632 Need: 640+

Thanks for your reponse. I know the Citi is the big problem. But, without $5k....not much we can do but slowly pay it down. 

Message 6 of 7
Valued Contributor

Re: Current Score: 632 Need: 640+


wakefield622 wrote:

Thanks for your reponse. I know the Citi is the big problem. But, without $5k....not much we can do but slowly pay it down. 


Well, on the bright side, as the AAoA increases, baddies age, and balances are paid down, it seems to be a short matter of time until you guys hit 640..

 

Maybe not in the next 2 weeks, but I think it should happen within months even if you did nothing but pay down the Citi incrementally.

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 09/14: TU: 784 | EQ: 752 | EX: 784
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession


Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $13900, Citi/Home Depot $8500, Capital One Cash Rewards $3500, BOA $7500 Total Utilization: 3%. AAoA: 2yr, 9mth. INQS: 1 TU, 1 EQ, 3 EX
Message 7 of 7