@Desi_Hybrid wrote:
@Anonymous wrote:
It's tough to say without knowing how the tradelines are reporting as well as what your current mortgage FICOs are, and also what each and every open credit card reports in terms of current balance and credit card limit, as well as the number of inquiries you have less than a year old and what their dates are.
Specific points:
- A collection of $500 scores the same as a paid collection. If you want to gain points, you can offer a PFD (pay for delete) to get the collection deleted upon payment -- get this promise in writing by mail. Note that if you have 7 collections and pay off 5 to get deleted, 2 collections could still score the same as 7 depending on other factors.
- Chargeoffs showing a balance are hurting a lot because they're scored like overlimit credit cards as their balance is part of your credit card utilization. So paying these down MIGHT have a score increase, depending on your other credit card balances and limits.
Without actual data here, nobody can give you any accurate advice.
@Anonymous thank you for your feedback. Below is the information to give you a better picture of where I am at:
3 Collection Accounts:
- T-MOBILE $425
- MIDLAND FUNDING - COMENITY BANK ( J.CREW, VS) Amounts below
4 Charge Off's
- AMEX (Still reporting balance) $1,352
- COMENITY BANK (Collections $743)
- COMENITY BANK (Collections $1,399)
- MACY'S (Still reporting balance) PIF payment scheduled $476
Current Open Cards
- Cap1 Secured $750 limit | $640 balance
- Discover $650 limit | $380 balance
- Cap1 Journey $3,000 limit | $2500 balance
Mortgage Lending Scores
TU: 524 EQ:491 EX:509
6 inquires from Sep and Dec of 2017 from 2 pulls from mortgage lenders
THAT is what I call a perfect submittal, thanks!
First of all, T-Mobile is very good about deleting. Is that currently managed by ERC or another CA? Call T-Mobile, ask them to recall the debt and pay it in full. Easy peasy. I had this same collection on my reports in February and it was gone by March doing this.
Amex wants to get paid and if you ever want to get back in with them, you want to pay them. I'd suggest paying off any chargeoffs with a balance if it's held with the OC as those numbers hurt your score.
Your credit card utilization is horrible, I am sorry to say.
Capital One is 85.3% which is near-derogatory (over 68%)
Discover is poor at 58.5% (over 48%)
Capital One Journey is 83.3% which is near-derogatory (over 68%)
Aggregate utilization is over 100% because the chargeoffs are calculated in your credit card utilization -- that could hurt for 40-90 points depending on a lot of factors.
Your first and most important thing to do is get your open cards to AZEO (see my 11 rules signature link). That means Capital One and Discover report $0 (you can use the card but pay to $0 before the statement date!) and the Journey card should report a balance between $3 and $260 every month. You can use this card for more but pay it below $267 before statement cut (but not zero). This will have an immediate effect on your mortgage scores and FICO8 scores. Immediate. Mortgage FICO is greatly affected by high utilization.
Step two should be to pay off your collections with a PFD, or request the OC claw back the collection so you can pay them directly. This will have a small effect on your scores because of the existing charge-offs.
Step three is paying off all chargeoffs reporting a balance with the OC -- pay them to $0 so your credit card utilization isn't crushed.
I can't guarantee anything but I bet you see a 40-60 point increase by doing these things, but your mileage may vary.
