After working on my credit for almost a year trying to get some fraud of it... I'm almost there. I had a judgment removed that didn't even belong to me in the first place and two credit cards deleted that were fraud. My scores went from 530's to 680. I'm so estaic! My credit-to-debt ratio is at less than 10%. I do have 3 collection accounts I still need to remove. All medical collections that I have were caused by insurance company not filing properly. I also have one 30 day late that I had when I had heart surgery and just missed the payment. Credit card is through Orchard Bank... which is now Capital One. Anyone have a contact at Capital One that might help me get this removed? The late was February of 2012.
Next... I need some advice. I was involved in a car accident last week and my car was totaled. They are giving my about $5000 for it. My mother recently passed away and left me a house she had just purchased (with a mortgage). She purchased the house with it needing the interior gutted. I am in the process of getting the house quick claimed into my name, but need to get it financed. I have been making the payments on the mortgage. The balance is $31K. It needs $20-25K worth of work, but should sell for around $100K when fixed up.
My question is... Should I use a portion of this money I am getting out of my car to try to get the $1200 worth of medical collections off my credit first or go ahead and try to get the house financed into my name. I'm thinking if I can get them removed, they might help boost my score. The date of deliquency on them is about 6 years ago... but each still show a balance. I don't know how much these are affecting my score. I'm thinking I will have to at least have them paid to get a mortgage and maybe even a car even though my score is 680.
I will need some kind of construction loan to get the house and to make improvements. Then the other thing is... I will need to get another car. I have another one I can drive for now until I get everything in order... but it's about on it's last leg.
I'm not sure if financing a car now will make it more difficult getting a home loan?? In the past I would have rushed into a decision, but now that I almost have everything straightened up... I want to take the right steps to get all this done right and not shoot myself in the foot.
Any advice how I should handle all this will be helpful!
Starting Score: EX 536 EQ 540 TU 536
Yeah... I was thinking I should wait. I didn't know how it would affect the mortgage process. I want to do whatever I can to get collections off and to raise my score to get the best possible interest rate. I have only one credit card with a $33 balance. I have no other debt other than deferred student loans... I go to college full-time and work full-time. I wasn't for sure if a $200-250 car payment would affect my chances of getting the mortgage or not.