Equinfax score

[Anonymous]

Just checked my score it was 497 I almost fell out 3 active collections and 3 paid collections 21 accounts and a average account age of 2 years and 9 monthS with 16 inq in the past 2 years. 78% uti on revolving and 113 on installment (student loans). I would like to purchase a house within a year what steps can I take to get " credit healthy"? 7 inq will fall off in July and 2 more in nov Co will drop dec of 2016.

[eparker]

Well, not sure if it can be done in a year.  I'm not an expert but I will give you my opinion.  I was in your situation, and I put myself on a 5 year plan.  I am two years into my plan.  First and foremost if you are not current on your obligations, get current on your bills.  You need to get your credit card utilization to 9% or lower.  I would try and get some of those inquiries off or let them fall off. 

You need to attempt PFD's on the active collections still reporting.  On the paid collections you need to attempt GW letters since you have already paid them.  The collection agency is not obligated to remove them.  But a GW letter is an option. 

I'm not saying it can't be done but give it a try.  I believe FHA requires a minimum 620 and 12 months of being current on obligations.

Good Luck

[llecs]

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@Anonymous wrote:
Just checked my score it was 497 I almost fell out 3 active collections and 3 paid collections 21 accounts and a average account age of 2 years and 9 monthS with 16 inq in the past 2 years. 78% uti on revolving and 113 on installment (student loans). I would like to purchase a house within a year what steps can I take to get " credit healthy"? 7 inq will fall off in July and 2 more in nov Co will drop dec of 2016.

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Welcome to the forums!

I'd suggest reading the following:

Common Abbreviations

Credit Scoring 101 - great for knowing what is in your credit score and to see how your score is impacted.

What Steps Do I Take - great for learning the repair process.

and Example letters - PFDs, GWs, DVs, etc.

I bet it can be done.

To add to the above, make sure that 497 is a FICO score. I suspect it isn't if you got it from Equifax.com. They sell a competing, non-FICO called an "Equifax Credit Score." I mention that because your FICO report doesn't list AAoA in months. FICO rounds down to the nearest whole number in factoring in your AAoA.

Pay off all of your CCs. Use them every 3-4 months just to keep them active, but pay in full. When ready to app for that mortgage, let one report a very small balance. This alone might net you 60-80+ points assuming utilization is listed as a negative reason within your FICO report (you'd need to get it from here to see that).

FICO ignores ALL inquiries beyond 12 months old, even though they report for 2 years.

Send GWs to the paid CAs. If SOL expired and/or you have the $$$ to PIF, send a DV letter to each of the unpaid CAs. If they verify and you agree, then send a PFD.

If the COs are paid, send them GW letters too.

Ditto to the 620 requirement. Your lender will look at all 3 reports, so you might want to pull the other two too. You can get all 3 for free once per year via annualcreditreport.com.

[Anonymous]

Get your util down, see what your new score is, and go from there.  Over the course of 3 months I got mine down from 23% to 8% and my score jumped 23 points from 715 to 738.  In that time I picked up two (possibly 3) new inquiries.  I've read that the lower your scores are, the more they are likely to go up when you improve something on your credit report.

[dbailey1010]

We are in your boat.  I am working on my husbands credit now and we are starting with the DV letter and then the PFD letter.  Hoping they work by the end of January.  There are two accounts we are attempting right now.  Only because we have a little chuck of change coming within the next month.

Good luck to you and your family!

Danielle

[brentlamb6708]

Company Account number Date opened Balance Status Negative Indicator? [?]  

Credit First		11/2008	$707	Paid or paying as agreed	No
The Limited		8/2011	$54	Paid or paying as agreed	No	Details
Zale/Cbna		6/2009	$0	Paid or paying as agreed	No	Details
Chase Bank Usa Na		4/2007	$849	Charged off as bad debt		Details
Chase Bank Usa Na		4/2007	$807	Charged off as bad debt	No	Details
Bank Of America		4/2007	$796	Charged off as bad debt		Details
Capital One Bank Usa Na		2/2011	$287	Paid or paying as agreed	No	Details
Capital One Bank Usa N		6/2008	$0	Charged off as bad debt		Details
Fst Financial Bk Sd		4/2007	$0	Paid or paying as agreed		Details
Fst Financial Bk Sd		4/2007	$0	Paid or paying as agreed	No	Details
Pioneer Creditcompa		5/2011	$1,230	Paid or paying as agreed	No	Details
World Finance Corporatio		9/2011	$810	Paid or paying as agreed	No	Details
Pioneer Creditcompany		9/2010	$0	Paid or paying as agreed	No	Details
World Finance Corpora		9/2010	$0	Paid or paying as agreed	No	Details
Verizon Wireless		9/2008	$1,609	Collection account		Details
Sallie Mae		12/2008	$30,081	Paid or paying as agreed	3 30 late	Details
Dept Of Ed/Sallie Mae		4/2008	$3,844	Paid or paying as agreed	120 late	Details
Dept Of Ed/Sallie Mae		8/2008	$3,803	Paid or paying as agreed	120 late	Details
Sallie Mae		12/2008	$3,554	Paid or paying as agreed	1 30 late	Details
Sallie Mae		6/2008	$2,323	Paid or paying as agreed	1 30 late	Details
Wllmsbr B & T		4/2008	$0	Paid or paying as agreed	No	Details

Hopefully this will help yall give me some directions. my current plan is to snowball these accounts.