Need credit score increase techniques

[ezy20004]

Hi All,

I am in the process of trying to buy a house.  Im looking to apply in the next 4 months.  I have 3 cc's one 450 limit and a 298 balances another 300 limit and 144 balance and the last one 300 limit and 235 balance.  Since the beginning of the year, all my cards have been maxed out.  I make good money, however, I was being careless.  I have a sallie mae student loan that have been battled with for the last 3-4 years and and has a lot of 120 days lates on them.  I have 2 credit cards that have been closed by the creditor but paid.  I have a 2k pseg bill in collections by I C systems, I had a $500 debt from New Century Financial(Pressler and Pressler) I paid that in July and a medical bill thats $564  I recently got a 30 day late on my nissan card note in June and a 30 day late on my captial one card which is not my fault and soon to be corrected.  What are my chances of getting at least a 640 in the next 4 months or so?  One collection company that has the medical bill agreed to completely remove it off my report once paid.  Im looking to get a home built from Ryan Homes and NVR Mortgage.  My wife has a decent score but high ut which will be corrected shortly.  So hopefully my score will change once things get updated.  My equifax and experian are showing 491 on freecreditreport and my Transunion is like a 568.  Please let me know how I should handle this.

Thanks

[rckstrscott]

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@ezy20004 wrote:

Hi All,

I am in the process of trying to buy a house.  Im looking to apply in the next 4 months.  I have 3 cc's one 450 limit and a 298 balances another 300 limit and 144 balance and the last one 300 limit and 235 balance.  Since the beginning of the year, all my cards have been maxed out.  I make good money, however, I was being careless.  I have a sallie mae student loan that have been battled with for the last 3-4 years and and has a lot of 120 days lates on them.  I have 2 credit cards that have been closed by the creditor but paid.  I have a 2k pseg bill in collections by I C systems, I had a $500 debt from New Century Financial(Pressler and Pressler) I paid that in July and a medical bill thats $564  I recently got a 30 day late on my nissan card note in June and a 30 day late on my captial one card which is not my fault and soon to be corrected.  What are my chances of getting at least a 640 in the next 4 months or so?  One collection company that has the medical bill agreed to completely remove it off my report once paid.  Im looking to get a home built from Ryan Homes and NVR Mortgage.  My wife has a decent score but high ut which will be corrected shortly.  So hopefully my score will change once things get updated.  My equifax and experian are showing 491 on freecreditreport and my Transunion is like a 568.  Please let me know how I should handle this.

Thanks

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Welcome!

1st. Those credit scores are wrong and should not be used. They are not FICO scores. You need to know your FICO scores. Very few places you can get those, and its almost impossible to get your Experian. But you can get TU and EQ here. The Tu is an older formula not used by lenders but is pretty close. The EQ on this site is exactly the same as your lender will pull.

Rule of thumb is, no matter what you do to increase your scores, you cannot have any new negatives showing within the last year when you apply. You said the Cap 1 will be taken care of, but how about the car.  You need those removed, and they have to be or there is 0 chance you can be approved in 4 months. Those collections accounts, are any of them newer than a year?  

Those late payments are decimating your score. Current 30 day lates are deadly.

Removing one collection account will likely not raise your score. Paying collection accounts will not raise your score. You need multiple removals.

What is the AAoA on your credit cards? I would suggest paying down 2 of them to 0, and then the last one report a small balance, under 10 percent of the limit of the card. Some report different results, but this was the best score formula for me. YMMV.

What about that 2k collection? Do you have plans to pay?

I would do the following in this order:

Immediately work on those lates. Those have to be gone or you cannot qualify for the mortgage.

While doing that, you stated you make good money, so get those cards down.

Get that paid for delete medical taken care of, and send a good will letter to ask for the removal from the other paid collection

Then go on from there.. removing those lates, and the credit card balances will show you score increases... but there are alot of things to worry about when applying for a mortgage.

What kind of mortgage? FHA? Conventiona? USDA?

-scott

[ezy20004]

Thank you much rckstrscoot.  Im looking to go with FHA.  The 2k collection I was going to wait.  I dont think I can get those Baddies removed off except the exception of the Cap one 30 day late.  I can pay them down to 0 and leave %10 on one.  I am able to get 2 out the 4 collection accounts removed off my credit report.  What about this sallieMae?  Thats the worst history out there.  None of the collections were this year.  They were sold which brung them back up on my report.

[tboy1977]

Don't mean to sound pessimistic, but GOOD LUCK TO YA!!  You want a 140 pt jump in six months.  I filed an discharged a BK ch 7 Mar 2011 and after 18 months, my score has improved thirty points.  I want a house by fall next year, but it's looking more and more unlikely every day.

[ezy20004]

You never know.  Im looking to get items removed off the report completely, so Im hoping to get a lot of points back.  Its just the 30 day lates are killing me.

[tboy1977]

If you can get a GW to get the 30 days to disappear and the account to show as NEVER LATE!!  Then you will have a fighting change.

[rckstrscott]

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@tboy1977 wrote:

If you can get a GW to get the 30 days to disappear and the account to show as NEVER LATE!!  Then you will have a fighting change.

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I raised my score 224 points in 18 months. 21 collections. 2 judgments, 1 tax lien and charge offs.. took a lot of work, but its definitely doable. No doubt in my mind he can get to 640 if things fall his way. 

I raised my score over 100 points in the first two months... there are many people here who have done the same.. it really depends on how successful you are at removing.

You don't know what you can do until you try. The OP had a situation similar to mine, it is more than doable if you know what to focus on.

-scott

[rckstrscott]

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@tboy1977 wrote:

Don't mean to sound pessimistic, but GOOD LUCK TO YA!!  You want a 140 pt jump in six months.  I filed an discharged a BK ch 7 Mar 2011 and after 18 months, my score has improved thirty points.  I want a house by fall next year, but it's looking more and more unlikely every day.

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Are those lender scores in your signature? Where are you getting your scores from?

-scott

[ezy20004]

Yes,  I have a few things that I looking to get completely removed off.  Im many points roughly do your score go up when items get removed off?

Thanks

[ezy20004]

I just received word that my collection account that I paid was removed off the bureaus from eastern account systems.