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Established Member
Posts: 22
Registered: ‎07-22-2012
0

How Should I Handle This

Ok, so my goal is to raise my FICO Score to the 620-640 range for an FHA loan.

 

I have two trouble acounts that I need to handle. Here is the full snapshot:

 

#1 - CapitalOne Account - Charged Off (Amount Owed: $1,171 - No CL reporting - High Balance Only of $1,027)

#2 - Asset Acceptance - Open Collection (Amount Owed - $3,860 - Largest Past Balance of $2,268 - Settlement Offered for about 1/3rd of the balance)

 

Since these are Charge Offs and Collections, do these amounts this affect my utilization? If so, would paying the CapOne in full, and accepting the settlement with Asset (with a plan to have the Trade-Line deleted) raise my score? If this is in fact affecting my utilization, is the CapOne account "appearing" to have a utilization of 114%? Does the same hold true for the Asset acount?

 

Any help and insight would be appreciated. Thanks!

Moderator
Posts: 13,892
Registered: ‎04-15-2011
0

Re: How Should I Handle This

The Cap1 is counting against your util.  A CA will not count as util.

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
Established Member
Posts: 22
Registered: ‎07-22-2012
0

Re: How Should I Handle This

Another helpful tip. Thanks. So paying this off ASAP should help my score almost immediately (even if it needs to rebound from a drop)?

Moderator
Posts: 13,892
Registered: ‎04-15-2011
0

Re: How Should I Handle This

Paying down util is one of the fastest ways to get a bump.  Smiley Happy

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
Established Member
Posts: 22
Registered: ‎07-22-2012
0

Re: How Should I Handle This


Shogun wrote:

Paying down util is one of the fastest ways to get a bump.  Smiley Happy


Well guess who'll be getting a call today!!!

 

Thanks Shogun!

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