From 500's to a home loan.

[Anonymous]

I recently applied for a home loan not knowing there were medical bills lurking in the background as collections, (4 of em, sound familiar anyone?) I've been unable to find anyone building their credit while unable to pay off such collections (10k) where its right on the edge of being able to apply for bankruptcy or not. I've long watched my fico and wanted to update my progress here.

Equifax 530

Experian 630

Transunion 558

All lender pulled.

MyFICO say's my equifax is 620, so there's a 90 point gap between myFICO and reality. My goal is to get my middle score to 620 to apply for a home loan in the next 12 months.

Currently paid all accounts on time for the last 5 months

2 credit cards 

capital one 500 CL (opened march 2014)

capital one quicksilver 3k CL (opened october 2014)

one car loan, last 6 payments on time.

Plan- pay after bill cuts keeping all accounts under 30% utilization.

I'll update after 6 mo to show progress and show how accounts have gone up over time and by what rate.

6 months later: 

fico 4 for transunion 583                                up 25 points since last october

fico 2 for experian    671                                up 41 points since last october

fico 5 for equifax      556                                 up 3 points since february

Shows by paying all bills on time over 6 months after paying off all collections accounts on account your score CAN rises an average of 23 points.

I intend to purchase a home. Using this formulae I can apply for a home loan with a middle 620 credit score in 18 months after paying the last collection (Summer 2016 in this case)

[Anonymous]

Hey best wishes

[Creditwiser]

Welcome and Congrats on beginning your journey. Congrats on the QS 3K too