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Established Member
Posts: 33
Registered: ‎07-30-2012
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Need to raise my score FAST...Should I pay off my installment loan????

Hello Credit Junkies!

 

I am proud to say my credit score is up 115 points in just over a year!  YEAH!!!!  However, it was EXTREMELY low!  My median FICO score is now a 617.  As you all know, I need it to be a 640 in order to get approved for a mortgage loan.  Well, in the past few months I have paid off ALL collections!  WOOOHOOO!!!  Now the only things on my report are my car with a balance of $24,000 and a Sallie Mae Student loan with a balace of $3500.   I have been paying on this account for 5 years and have never missed a payment!  Thank goodness!  I do have a secured capital one card with a credit limit of $1250 and my credit report is reflecting a balance of $468.  I have already paid this off, but it won't reflect until the 22nd of this month.  My question is this, if I pay off the sallie mae, (the orginal balance was $4704) will this raise my credit score?  I really really need to raise my score to a 640 by December.  Do you think that there is any hope???

 

 


Starting Score: 517
Current Score: 638
Goal Score: 700


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Posts: 12,952
Registered: ‎04-15-2011
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Re: Need to raise my score FAST...Should I pay off my installment loan????

Of course there's hope.  What are the baddies still left on your report?  We need to triple the efforts on those and see if we can clean your CR up a bit.  Paying down that util will help and paying off you loan will help your DTI for the loan.


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+

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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 Contributor
Posts: 568
Registered: ‎08-24-2012
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Re: Need to raise my score FAST...Should I pay off my installment loan????

Good grief man, I think she get's the point! BAHAHAHA!

 

:smileylol:

"When you are down in the mouth, remember, everything turned out ok for Jonah."

Current FICO's(by lender) 10/9/12
EX:649, EX:651, TU:683
Established Member
Posts: 33
Registered: ‎07-30-2012
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Re: Need to raise my score FAST...Should I pay off my installment loan????

Well all the baddies are charge offs. (7 to be exact and they are ALL paid)   I have tried everything.  They were validated, and I have sent GW letters to no avail.  :smileysad: my debt to credit ratio is great!  Income isn't the problem.  It's for sure the payment history.  I went through credit repair, then I wised up and did the leg work myself. I had A LOT removed!  Then I paid off about 12k in collections.  There just isn't anything left to pay off for a "quick fix!"  I of course don't have an extra $24k laying around to pay off my car loan, but I could manage to pay off the Sallie Mae.


Starting Score: 517
Current Score: 638
Goal Score: 700


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Posts: 12,952
Registered: ‎04-15-2011
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Re: Need to raise my score FAST...Should I pay off my installment loan????

Wow,, on the laptop, have no idea what went on there,  I'll get that fixed!!!


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+

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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: 33
Registered: ‎07-30-2012
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Re: Need to raise my score FAST...Should I pay off my installment loan????

LOL i rather enjoyed the 3 post!  It gve me EXTRA hope! :smileywink:


Starting Score: 517
Current Score: 638
Goal Score: 700


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Valued Contributor
Posts: 1,228
Registered: ‎05-10-2012
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Re: Need to raise my score FAST...Should I pay off my installment loan????

Whats your AAoA? I'd bet your Util gets you pretty close when that updates. If your AAoA is low, maybe you can find someone who can add you as an AU?

  • Current: EQ FICO 706, TU FICO 701, EX FICO 706 | Starting Score: 525 (05/2012)
  • Starting total revolving credit: $1100 | Current total revolving credit: $36,700
  • Inquiries (12 Months): EQ 2 TU 1 EX 1 | Most Recent: 1/21/2014
Chase Freedom $9500
DCU Visa $10000
Capital One QS $2000
AMEX BCE $3000
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Valued Contributor
Posts: 2,660
Registered: ‎04-25-2011
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Re: Need to raise my score FAST...Should I pay off my installment loan????


martha75 wrote:

Hello Credit Junkies!

 

I am proud to say my credit score is up 115 points in just over a year!  YEAH!!!!  However, it was EXTREMELY low!  My median FICO score is now a 617.  As you all know, I need it to be a 640 in order to get approved for a mortgage loan.  Well, in the past few months I have paid off ALL collections!  WOOOHOOO!!!  Now the only things on my report are my car with a balance of $24,000 and a Sallie Mae Student loan with a balace of $3500.   I have been paying on this account for 5 years and have never missed a payment!  Thank goodness!  I do have a secured capital one card with a credit limit of $1250 and my credit report is reflecting a balance of $468.  I have already paid this off, but it won't reflect until the 22nd of this month.  My question is this, if I pay off the sallie mae, (the orginal balance was $4704) will this raise my credit score?  I really really need to raise my score to a 640 by December.  Do you think that there is any hope???

 

 


As you all know you need a 640 for a home loan?

 

There are def still lenders that will work FHA for far lower than 640....

 

I agree with the poster who mentioned the util; once that balance is reduced you should see a point increase.. will it get to 640? I don't know but if your lender isrequiring a 640 you should consider a different lender..

 

-scott

 

 

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 09/14: TU: 784 | EQ: 752 | EX: 784
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession


Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $13900, Citi/Home Depot $8500, Capital One Cash Rewards $3500, BOA $7500 Total Utilization: 3%. AAoA: 2yr, 9mth. INQS: 1 TU, 1 EQ, 3 EX
Established Member
Posts: 33
Registered: ‎07-30-2012
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Re: Need to raise my score FAST..Should I pay off my installment loan????

OK so I have NO clue what that acronym means!  LOL  Can ya help me out with that?  And if I am added as an authorized user, could'nt that potentially hurt my score?


Starting Score: 517
Current Score: 638
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Established Member
Posts: 33
Registered: ‎07-30-2012
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Re: Need to raise my score FAST...Should I pay off my installment loan????

Scott, my lender has told me that FHA will consider a lower score, but you can't have any late payments for 24 months.  I really messed up earlier this year and was 33 days late to Ally for my car note. I was in the midst of a divorce, and just really messed that one up.  I have tried EVERYTHING to get that late payment removed, as a matter of fact, I received another rejection letter from them today! 


Starting Score: 517
Current Score: 638
Goal Score: 700


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