Scores Jumped up Dramatically - Now Getting Mortgage, What Happens Now?

[Anonymous]

In January I applied for a home loan. The lender laughed at me. My scores were

TU: 585

EX: 553

EQ: 561

I now applied for a loan again in June, was approved, and am closing Escrow on the 16th. My scores are now:

TU: 687

EX: 713

EQ: 655

Question is, what's next? Will the mortgage take a dip in my credit? Also, I went from 90% credit usage to about $35. I expect to be below that number by January, but I'm going to be maxing, or close to maxing many of my cards for new purchases for the home. Any idea of what that will do? What should I expect my scores to look like (rough estimate)?

Finally, I'm going to refinance my auto the day escrow closes. Any suggestions why/why not? I figure, next month, my credit will take a hit, so I should get a lower interest rate right away to avoid not being able to refi until later... I'm at 13% for auto (4.75 for mortgage).

[Anonymous]

Congrats!!!! Your score change gives me hope.........something I need!

[Anonymous]

Have you pulled your FICO's from here recently? In the simulator it gives you an option to "max out credit cards." This would give you the best estimate of your score after doing such...

[Anonymous]

Would you mind sharing what you did to receive your increases and what seemed to be most effective?

[guiness56]

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@Anonymous wrote:

In January I applied for a home loan. The lender laughed at me. My scores were

TU: 585

EX: 553

EQ: 561

I now applied for a loan again in June, was approved, and am closing Escrow on the 16th. My scores are now:

TU: 687

EX: 713

EQ: 655

Question is, what's next? Will the mortgage take a dip in my credit? Also, I went from 90% credit usage to about $35. I expect to be below that number by January, but I'm going to be maxing, or close to maxing many of my cards for new purchases for the home. Any idea of what that will do? What should I expect my scores to look like (rough estimate)?

Finally, I'm going to refinance my auto the day escrow closes. Any suggestions why/why not? I figure, next month, my credit will take a hit, so I should get a lower interest rate right away to avoid not being able to refi until later... I'm at 13% for auto (4.75 for mortgage).

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I can't give you specific numbers but, if you max out your CC you can be garanteed a dip in score.  Once your utilization comes back down your score will go back up.  Just pay them off as soon as possible so your score will rise faster.

How much will you be saving by refinancing the car?  Will it cause your loan to be extended longer?  Have you figured out the end result?

[diveforfun97]

That could be the biggest jump in 4 months that I have seen so far.  A big congrats!

[Anonymous]

This was a big surprise to me. My lender said she had never seen someone come up that quickly before, going from a 5xx to a 7xx in such a short period of time.

These scores (other than experian) were obtained from here, or from Experian.

How I did it? Well, I negotiated with some of the companies, pay for deletion. Most won't do much, and if they didn't, I paid anyway, then tried to get it deleted. What I noticed is, some companies won't waste their time if its paid, so you end up getting it off your credit anyway. Some however, will fight till the end, even if it's $54...

I also went from 90% to 35% credit usage. Paid off a car, and basically spent all of my available money for 6 months on paying my debts down or off completely.

I can't believe this either, I purchased a houe almost 3 years ago, but had a 530 fico, so the lender went with our income, and my mothers credit, and we were able to get a house. Problem is, she is declaring bancruptcy, the houe is worth 50% of what it was then, so we were losing the house. We didn't know what to do and tried every avenue, so we accepted it, but did not want to accept going into an apartment. We had until August 1st to leave our house (it's in forclosure).

I figured I was, well, stuck. I lost my job in September of last year, and was out of work until the end of May. It was looking like there was no way out of this. Anyway, despite this, we lived "poor" and paid all of our bills, disputed ones that weren't deleted, and there you have it, from 5xx to as high as 7xx! The only thing holding us back in May when we applied for the house was employment, so I was lucky to get offered a job a week after we got pre approved.

Now I just want to straighten out my interest in the car, 13% is killing us. We're paying $685 for a 30k Prius...

[Carbusys]

Congratulations on the score jump and on purchasing your new home. I understand credit usage is probably the most important part of your credit report and score. If you are high in your credit usage, it is an indication that you are close to being overextended. I am currently at 79% usage on ten cards, but I am paying an extra $300 a month, besides the regular payments, on the cards and hope to around 49% come Sept 1.  

[mauve]

Mortgage doesn't count for utilization.  Mortgage is counted as installment, utilization looks at revolving.