cancel
Showing results for 
Search instead for 
Did you mean: 

Should I be getting excited?

tag
Anonymous
Not applicable

Should I be getting excited?

First off I would like to thank everyone on here for the help and support. There is a lot of good information on here that I would have never known had it not been for myfico.com. Good information that everyone should know. I was wondering what kind of increase should I possibly see (I know it is just a shot in the dark). So far I have been working on a 9 month student loan rehabilitation program (5 months from now I get all of my student loan dorrogatories taken off. I have 5 medical collections that will be paid in less than 6 months. Thank god for medical records laws. Besides the bankruptcy which is 3 years old now. The only other think I am working on is to PFD an auto repo for $1900.00. I have opened two credit cards. One with Orchard Bank (Platinum CL $300.00) and Credit One (Gold CL $250.00). The cards are PIF every month. I have also taken out a $12,000.00 auto loan as a co-borrower with my wife.
 
When I checked in May before my hard work I had credit scores of 484EX/481EQ/522TU.
My wife and I want to buy a house in about a year. What are the odds.
Message 1 of 10
9 REPLIES 9
Anonymous
Not applicable

Re: Should I be getting excited?

Not an expert here, but I would say that paying off those collections will definitely help as far as getting a mortgage.  I don't think lenders like to see unpaid collections.  Your scores will take a hit when you pay those, because they'll re-age the accounts.  But if you make your car payments on time for the next year, and keep those cc's PIF every month that should increase your scores, since it will show you are handling credit responsibly over a period of time.  Just make sure you don't have ANY lates in the next year.
 
 
Message 2 of 10
Anonymous
Not applicable

Re: Should I be getting excited?

I just hope I can get up close to the 600 mark. Thats a jump of almost 120 points? Is it possible. has anyone else done this.
Message 3 of 10
Anonymous
Not applicable

Re: Should I be getting excited?

First of all, congrats on all your hard work!!

Keep paying everything on time and pif your cc's! Try to get cli every 3-6 months! If possible, try to pay the car loan down as much as possible. Even paying an extra 50 a month will save you 100's of dollars in interest!

Btw, just a head up, save save save! You scores may still be in the lower 600's in a year (maybe mids) due to the BK.. if so, having a larger down payment for your house will be key in getting the loan. Having at LEAST 10% is good, 20% is AWESOME, and 30%+ is FANTASTIC. (also, having at least 20% down will keep you from paying PMI (private mortgage insurance) saving you more money in the long run! (I have my real estate license by the way) Good luck!


(To answer your last question- I jumped 38 points in one month by paying util down- so yes that is possible in a year)

Message Edited by AlishaR on 07-09-2008 08:33 AM
Message 4 of 10
Anonymous
Not applicable

Re: Should I be getting excited?

If I could even get close to 600 I should stand a pretty good chance of at least qualifying for a mortgage. Even if I have to pay the insurance. I just want to hit that 600 mark. Been around 475 for a while now. Makes you feel like dirt.
 
I know this may be the wrong forum, but the mortgage guru's on here may be able to answer me a quick question. If I can work my way up and above the 600 mark to qualify for a mortgage and I make 92000 a year with only 719 a month for debt. PITI 28 percent = $2135.00 or 36 percent = $2026.36.
Do you believe it will be hard for me to qualify for $175,000.00 mortgage?
My debt will accually decrease by $365.00 a month by this time next year.
 
Is this possible (likely).
Message 5 of 10
Anonymous
Not applicable

Re: Should I be getting excited?

According to my calculations Smiley Wink you should be able to qualify with some downpayment/closing costs. Have you looked into Fannie Mae? You should be able to qualify for some government funding toward dp and closing costs?
Message 6 of 10
Anonymous
Not applicable

Re: Should I be getting excited?

The only thing that I am worried about is if I am working really hard to pay EVERYTHING off then I wont have much of any money saved for a down payment. Maybe like $5000.00. The other thing that I am worried about is when my wife starts working in Sept. then our annual income will be above 115K. This could cause us to not qualify for any down payment assistance. Do you have any advise?
Message 7 of 10
Anonymous
Not applicable

Re: Should I be getting excited?

I am having a little bit of a problem though with PFD the auto repo. It shows up as a CO as bad debt. Has anyone had any luck in this situation. The amount is for $1900.00 and i would gladly pay it for removal.
Message 8 of 10
Anonymous
Not applicable

Re: Should I be getting excited?

Should I also wait 3 or 6 months to apply for CLI. What kind of chances do most get increasing only after 3 months with Orchard and Credit One.
Message 9 of 10
Anonymous
Not applicable

Re: Should I be getting excited?

You should be able to still qualify for a FHA insured loan. (not sure on FNMA, if I'm correct you may still be able to qualify for that as well.) I don't deal too much in the mortgaging part of real estate so my stats are kinda rusty. Smiley Happy If you really want to know, PM me and I'll be glad to look it up in my books for ya!

Also, keep in mind, that any down payment is better than no down payment, especially with low scores.

As far as cli's go, I would search for people getting clis with those banks. I don't have any experience with the one's you listed, but the majority of the time, it is 3 months before you will get a cli. (However, some cards are 6- Hooters, Chase, Citi for example)

Message Edited by AlishaR on 07-09-2008 06:25 PM
Message 10 of 10
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.