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Valued Member
JenThompson777
Posts: 34
Registered: ‎07-10-2009
0

Raise score 20+ in 3 months??

Hi Everyone,

 

I'm trying my hardest to get my middle credit score above 620 in time to send in my mortgage application in February or March 2010.  However, it seems like everything I try is a dead end.  I've disputed items on my CR... and have been paying down my debts.  But, which really carries more weight on the FICO score?

 

I am left with 2 open collections which are a bit much for me to pay right now, or even settle.  I have 2 credit cards that I'm slowly paying down and should be less than 1/3 balance on both by end of February.  I have several old/paid/closed accounts that still show I had 30+ day late payments back in 2008/2007, but I haven't tried to dispute those b/c I figured they didn't have much weight on my score now.

 

WIth this in mind, what would you do first to get the fastest credit score growth?? Thanks so much for your help!

Moderator Emeritus
MarineVietVet
Posts: 14,576
Registered: ‎07-14-2009
0

Re: Raise score 20+ in 3 months??


JenThompson777 wrote:

Hi Everyone,

 

I'm trying my hardest to get my middle credit score above 620 in time to send in my mortgage application in February or March 2010.  However, it seems like everything I try is a dead end.  I've disputed items on my CR... and have been paying down my debts.  But, which really carries more weight on the FICO score?

 

I am left with 2 open collections which are a bit much for me to pay right now, or even settle.  I have 2 credit cards that I'm slowly paying down and should be less than 1/3 balance on both by end of February.  I have several old/paid/closed accounts that still show I had 30+ day late payments back in 2008/2007, but I haven't tried to dispute those b/c I figured they didn't have much weight on my score now.

 

WIth this in mind, what would you do first to get the fastest credit score growth?? Thanks so much for your help!


Welcome to the forums.

 

The first thing I would do is put off buying a house for a year or two in order to work on my credit situation. Even if you are able to get your middle score above 620 you will needlesly pay possibly thousands of dollars in finance charges over the life of a loan because you can't qualify for the lowest rates. A house can wait in my opinion. But.....that's just me.

 

Several things are holding your score down.

 

1. Collections are a major negative whether they are paid or not. All FICO sees is a collection. You need to get those removed if at all possible.

 

2. Utilization of revolving credit is 30% of the total score. For optimum scoring you need to have one of your cards report a zero balance each month with the util on the other card no more than 1-9%. This will help your score.

 

3.You mention several old/paid/closed accounts that still show I had 30+ day late payments back in 2008/2007Those are hurting you also. They need to be taken care of to help your score.

 

This might sound like a lot of work but it's necessary to get you where you want to be. Most if not everyone here has been in your shoes and you can get answers that will help you on your journey.

 

Good luck to you.

 

 

From a BK years ago to:
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802

You can do the same thing with hard work.

Valued Member
JenThompson777
Posts: 34
Registered: ‎07-10-2009
0

Re: Raise score 20+ in 3 months??

Thank you for your honest response.  I appreciate it.  It looks like I do have a lot of work to do to get where I want to be.  And you know... I think there are going to be a lot of people out there like me, who are mainly trying to get the house deal worked out in order to claim the extended homebuyer credit.  My second reason, and actually probably more important, is that my lease is up in July.  I rent a house and the landlord will want to sell the house when this lease is up.

 

It probably would be best for me to wait another year or two to work on the best score possible... and that may mean I need to find another place to rent until then.  I'll just have to weigh my options.

 

However, IF I can get my scores above 620, I believe (due to the way the housing market is going) I'll still be able to get a great rate - even if I'm just above 620.  Plus, during this housing market, I'd like to grab one of these great deals on a larger home in my area. 

 

If I can get my cards paid down to zero balance.... maybe by the time I apply... my credit will have gone up enough points?   That's my plan right now.  Pay down my cards, wait to see if my score gets in the right place by end of February.  If not, get my tax return in February and settle collections (try to get the CA's to delete).  Pull score end of March and apply!  Maybe... hopefully.... I can pray. haha!

 

Thanks again for your words of wisdom.  You've definitely made me think about my position and what steps to take.

 

Moderator Emeritus
MarineVietVet
Posts: 14,576
Registered: ‎07-14-2009
0

Re: Raise score 20+ in 3 months??


JenThompson777 wrote:

Thank you for your honest response.  I appreciate it.  It looks like I do have a lot of work to do to get where I want to be.  And you know... I think there are going to be a lot of people out there like me, who are mainly trying to get the house deal worked out in order to claim the extended homebuyer credit.  My second reason, and actually probably more important, is that my lease is up in July.  I rent a house and the landlord will want to sell the house when this lease is up.

 

It probably would be best for me to wait another year or two to work on the best score possible... and that may mean I need to find another place to rent until then.  I'll just have to weigh my options.

 

However, IF I can get my scores above 620, I believe (due to the way the housing market is going) I'll still be able to get a great rate - even if I'm just above 620.  Plus, during this housing market, I'd like to grab one of these great deals on a larger home in my area. 

 

If I can get my cards paid down to zero balance.... maybe by the time I apply... my credit will have gone up enough points?   That's my plan right now.  Pay down my cards, wait to see if my score gets in the right place by end of February.  If not, get my tax return in February and settle collections (try to get the CA's to delete).  Pull score end of March and apply!  Maybe... hopefully.... I can pray. haha!

 

Thanks again for your words of wisdom.  You've definitely made me think about my position and what steps to take.

 


You might be absolutely correct about that. I hope you are. I last bought a house 12 years ago and don't plan to ever buy another one so you are probably more knowledgable about that than I am. I wish you only the best.

 

But stick around these forums. You'll learn alot.

Moderator
LIGHTNIN
Posts: 4,155
Registered: ‎03-24-2008
0

Re: Raise score 20+ in 3 months??

Welcome to the forums Jen,

Sorry but I do agree with marinevietvet, buying a home will be the largest purchase in your life.

 

DH and I brought a home 20yrs ago(wow time went by fast, very fast)...

Before we were financially able to due so.Sure we paid the morgt payment,taxes and insurance.

But were unable to have enough $$ to repair things that needed it, or update appliances or decorate our

home that truly reflected our  personalities. Don't get me wrong I liked it, but just didn't LOVE it....

only has 1 bath...Can't wait for a home with 2 baths LOL :smileyhappy:

 

Everytime we thought we could move, something would happen...huge medical bills, attorney fee....

(my ex took me back to court when DS was 14yr old, to get full custody and child support) LOL

He didn't want to pay the $100 per mo child support (that's right one hundred dollars per mo)

from when DS was 15mos old till about 17yrs old.

And then 7yrs ago both DH and I lost our jobs at the same time(medical reasons) so was stuck in the home again.

until now...need to move closer to mother, that's about 7miles away.

 

So learn from my mistakes....Always pay on time.....Live Below your means.

Have an emergency fund for those sudden bills, but replenish it as soon as possible.

Make sure the house you buy..... You Love it...

You never know how long it will be, before you are financially/physically able to move again.

It's OK to use CC's, as long as you pay before the end of the month.

Double check every bill. CC and bank statements you receive for mistakes.

And pull your Free CR's from annualcreditreport.com

By law, you can pull 1 CR from each EQ,EX and TU every 12mos and check for id theft and errors.

 

Rule #1 Knowledge is Power...So

Use myFICO web site and absorb all the credit info that you can, before buying that home you love.:smileywink:

 

FICO's Oct 2013 TU711 EQ713 EX723~~Live below your means and always keep an emergency fund -Love Everybody ~ Big Kenny ~ Big and Rich ~~~~~Credit Scoring 101 - Common Abbreviations - Freq Req Threads - Free Credit Reports - What Steps Do I Take?DV? PFD?
Valued Member
JenThompson777
Posts: 34
Registered: ‎07-10-2009
0

Re: Raise score 20+ in 3 months??

Wow Lightnin, thanks for your opinion.  I appreciate what you have gone through in order to give your wise advice.  I definitely see your point. 

 

I know I don't want to put our family in any kind of bind.  Matter of fact, we are a family of 5 (our three kids are 1, 3 & 6) and have lived in apartments, with our parents, and now in a rented house for the last 2 years.  

 

We are living in our means right now, but what we are paying in rent, we could be paying the complete PITI monthly payment towards a house.  I feel like we truly are "throwing our money away" as I always hear people say about renting.  I would love to jump in now while we may have the opportunity to get a house, while the prices of homes around here are so much cheaper...  and then build equity.  I guess my main reason for having my heart on this plan is because I have always wanted my kids to grow up in a scenario as I did...  I grew up in a nice neighborhood, nice house, parents owned it from before my birth through me going to college and had so much equity in it that they were good as gold.  I just want something nice & big for my kids to be comfy in, and I can't help but feel like the timing is so good.

 

However, there's always the "other side" to every story. And this case is no different.  Will the housing market really get so much better in the next year or so that I shouldn't wait until then to build up credit and $$?  Will missing out on the extended 1st time homebuyer credit of $8k be a big mistake, or not be much of a difference?  Things like this that I keep thinking of...

 

But no matter what I end up deciding to do... it's really about that dreaded credit score, and whether it can even climb 20 points in time for me to put in my application :smileyhappy:  Arrrgh!!! lol     Thanks again for your insight.

 

 

Super Contributor
DI
Posts: 5,744
Registered: ‎01-28-2008
0

Re: Raise score 20+ in 3 months??

Keep up the good work.

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