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What should I do?

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Anonymous
Not applicable

What should I do?

Hello all,

 

I'm currently buckling down hard trying to get to my first goal score of 620 so I can apply for a mortgage using my VA loan by the summer of 2017.  I've made some bad choices in the past but am working hard to get to where I need to be, but need some advice, goals, or a checklist to follow so I can get there!  My situation is as follows:

 

- Current score (465), verified via credit karma

- No accounts in collections currently.  Two cards went to charge-off, two others went to the IRS, one paid and another I need to start paying in two weeks.

- Two credit cards from Navy Federal that were closed by them they state due a review of my report, total balance remaining ($3450/5000 & $450/1000) - Paid on time

- Navy fed line of credit ($900/1000) remaining - Paid on time

- Auto loan from Chase ($5100/26000) remaining - Been paying on-time for 7 months straight now

- 14 total late payments on my credit report from chase auto.  I have sent one goodwill letter to them and they denied me.  I sent another one yesterday.

 

I'm planning on getting a secured card from Bank of America within the next two weeks with a $300 limit to start, $500 if I can find the extra cash.  Is there anything else I should be doing in the mean time to help myself out?  Thank you for your time and recommendations.

 

 

Message 1 of 5
4 REPLIES 4
rmduhon
Valued Contributor

Re: What should I do?

Pull your actual FICO scores from either here or Creditchecktotal.com. I'd suggest from here since you'll get mortgage scores also. Credit Karma uses Vantage 3 scores which very few lenders use.
Message 2 of 5
RobertEG
Legendary Contributor

Re: What should I do?

Payment history is the highest weighted category in credit scoring, and the presence of multiple major derogs is killing your score.

Major derogs are defined as monthly delinquencies greater than 60-lates, a charge-off, collection, or any public record, such as a judgment or tax lien.

 

Derogs age, depending upon thier type, at differing times, but generally become excluded at approx 7 years.

What is the age of each derog?

 

Additionally, while you have no current collections, you indicate multiple charge-offs.

It is common, after a CO, for the creditor to then sell or refer the debt to a debt collector, which can then add a collection to your report.

You might wish to give priority to paying the COs if there is significant time remaining in their credit report exclusion period, thus avoiding further damage.

Message 3 of 5
heavyjay
Regular Contributor

Re: What should I do?

Forget the secured card for now. You need to get those NFCU cards paid off. They're reporting balances totalling $3900 against credit limits of $0.


FICO 08:Jan 18, 2017: EX 800 EQ 725 TU 799
FICO 08:Feb 10, 2017: EX 788 EQ 772 TU 791 (post New Year's app spree)
In the garden as of 1/4/2017. Will remain for all of 2017.
Message 4 of 5
Anonymous
Not applicable

Re: What should I do?


@heavyjay wrote:

Forget the secured card for now. You need to get those NFCU cards paid off. They're reporting balances totalling $3900 against credit limits of $0.


One should not preclude the other. Sooner the new accounts are open, the quicker OP can reach his score goal.

Message 5 of 5
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