Need about a 7-10-Point Bump This Month

[Startfromwithin]

Hello!

I am in the process of securing a mortgage loan. My mid-score is 633, which qualifies, but I understand from my Broker that a 640 mid-score is like the 'FICO Sweet-Spot' for a mortgage loan.

All of my collections are paid off with the exception of a new entry (not a new debt) that is about a year old. ($118 auto-insurance. Had no idea I even owed them. I tried PFD, but they won't even discuss that as an option) I don't want to pay that right now, as I can't afford a score drop right now. Apparently because it's about a year old, it's a non-issue for the mortgage loan. (not for this lender, anyway)

I have a Capital One card that only has a $10 balance.

I also have Sallie Mae Student Loans.

These are my only two options, as I don't have a car payment or any other outstanding debt on my credit report to work with.

So... how can I see a bump this month using my Capital One or my Sallie Mae loans? I thought I read that paying down Sallie Mae will help with your debt-to-income ratio, but not necessarily your FICO.

Can someone shed some light on this for me please?

[guiness56]

Even though installment loans factor very little into your FICO score, you could possibly see some sort of gain in points.  It is a YMMV thing.  Some will see an increase others won't.

What is your CL on Cap 1?  You could try to pay it to $5 and see if that helps.

[Startfromwithin]

Okay... got it.

I was trying to avoid paying any additional money with Down Payment and Closing Costs knocking on my door, so to speak, so I was hoping to find out for sure if throwing $500-$1,000 on my Sallie Mae would help. It's nice to know that it actually could help though.

I'll do that with Capital One though. I'll pay it down to $5... see if I gain a couple extra points.

Thanks!!

[Startfromwithin]

The Credit Limit on my Capital One is $500.

[DaBears]

Unfortunately its already the middle of the month so the credit card companies probably already reported to the Bureau's. You can try and ask your LO to do a rapid rescore for you. 

[Startfromwithin]

Okay.

My closing date is June 14th, so we have a little time. We can probably even wait for the next update before we button up the loan piece. My Capital One seems to update between the 6th - 8th of each month.

I don't know. We'll see what happens.

I'll surely pay it down to $5 though.

Thanks for your input!!!!!!!!!

[DaBears]

Nevermind on the rapid rescore. If you have until June then you are good to go. There should be no problem getting your points you need like guiness stated you should be fine. Good luck and keep us posted. 

[flash2093]

How long have you had your Capital One card? I would request a credit limit increase, even a small increase can help.

[DaBears]

CLI will result in a HP. Rule of thumb you don't want to open any new credit within 6 months of applying for a mortgage.

[Startfromwithin]

Hhhmm... good thinking.

I have had it since 2011. I did request an increase several months ago, but my FICO wasn't as good as it is today. (not saying it's spectacular. )

I will do that today... see what they say. I think it's worth a try.

THANK YOU!! I'll keep you posted.