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Established Member
kofifi
Posts: 20
Registered: ‎03-02-2013

how to raise score in 30 to 60 days

In process of trying to purchase a home. We got our credit score pulled and our midle score was 611 & 609. We went ahead and paid off our tax lien and paid my wifes credit card debt to 0. We are in the midst of paying all my credit card debt to 0. have about $1000 left till we hit 0. i have 3 30 days late from sept of last year when the mother of my child passed. I called HSBC, Orchard BAnk as well as Credit One Bank and explained the dillema they all told me they couldnt delete it since it was accurate. So at this point i figured i would do a dispute on my credit reports to see if they will not verify it or let it go since it was only 30 days old. I am hoping to get pre approval on a house in the next 30-60 days. by the way the only loan we have is a loan through ally financial which we got a loan for a vehicle for 24000 a year and a half ago and only owe 11,500 on it now. We also make about 96k between the two of us.  My question to yall is ther anything else i can do to raise my score quickly? The reason i chose getting pre approved in 30 days is because lady i talked to about the tax lien said it will take about 30 days for that info to show as paid. Thank you for any other info

tran 685
equi 675
exper 641
Valued Contributor
rckstrscott
Posts: 2,659
Registered: ‎04-25-2011

Re: how to raise score in 30 to 60 days

[ Edited ]

kofifi wrote:

In process of trying to purchase a home. We got our credit score pulled and our midle score was 611 & 609. We went ahead and paid off our tax lien and paid my wifes credit card debt to 0. We are in the midst of paying all my credit card debt to 0. have about $1000 left till we hit 0. i have 3 30 days late from sept of last year when the mother of my child passed. I called HSBC, Orchard BAnk as well as Credit One Bank and explained the dillema they all told me they couldnt delete it since it was accurate. So at this point i figured i would do a dispute on my credit reports to see if they will not verify it or let it go since it was only 30 days old. I am hoping to get pre approval on a house in the next 30-60 days. by the way the only loan we have is a loan through ally financial which we got a loan for a vehicle for 24000 a year and a half ago and only owe 11,500 on it now. We also make about 96k between the two of us.  My question to yall is ther anything else i can do to raise my score quickly? The reason i chose getting pre approved in 30 days is because lady i talked to about the tax lien said it will take about 30 days for that info to show as paid. Thank you for any other info


You don't want to have the credit card debt at 0. You want it to report below 10 percent. FICO likes to see SOME usage, because after all, FICO is a credit risk score.

 

Disputing late payments through the CRAs hardly works. First off, its all done electronically, so they just send a code through the system to the OC and they respond back.  Plus disputing valid information isn't a good policy to follow in general, especially if you are trying to get something like lates removed. You want to try to get them harbor good will. Disputing doesn't really do that.

 

If the lates are from last year in September, you won't be able to close on a loan until after those are  year old anyway, so I am unsure if a lender will prequalify you with those showing. Good news is, after the year mark, those lates start to matter less anyway, so you might see a little score boost.

 

What is your UTIL ratio? That is more important than what you owe on the cards. If you owe 1000 dollars on 1700 worth of limits, you will easily get points paying it down. If you have 10k worth of limits and only owe 1000, you will not get many points at all from this stage.

 

What type of loan are you attempting? FHA?

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 05/12: TU: 722 | EQ: 712 | EX: 686
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession

Still Working On: Illinois Paid Tax Lien,
Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $3900, Citi/Home Depot $2000, Capital One Cash Rewards $1500, Capital One Secured $500, Credit One Bank $500. Total Utilization: 6%. AAoA: 1yr, 7mth. INQS: 8 TU, 8 EQ, 4 EX
Valued Contributor
rckstrscott
Posts: 2,659
Registered: ‎04-25-2011

Re: how to raise score in 30 to 60 days


kofifi wrote:

In process of trying to purchase a home. We got our credit score pulled and our midle score was 611 & 609. We went ahead and paid off our tax lien and paid my wifes credit card debt to 0. We are in the midst of paying all my credit card debt to 0. have about $1000 left till we hit 0. i have 3 30 days late from sept of last year when the mother of my child passed. I called HSBC, Orchard BAnk as well as Credit One Bank and explained the dillema they all told me they couldnt delete it since it was accurate. So at this point i figured i would do a dispute on my credit reports to see if they will not verify it or let it go since it was only 30 days old. I am hoping to get pre approval on a house in the next 30-60 days. by the way the only loan we have is a loan through ally financial which we got a loan for a vehicle for 24000 a year and a half ago and only owe 11,500 on it now. We also make about 96k between the two of us.  My question to yall is ther anything else i can do to raise my score quickly? The reason i chose getting pre approved in 30 days is because lady i talked to about the tax lien said it will take about 30 days for that info to show as paid. Thank you for any other info


Also, is this a federal lien or a state lien? Federal liens you can possibly remove. You will not see a score increase from paying off this lien. You would have get it removed... but satisfying the lien will let you at least get a mortgage, but your credit score won't go up, and it dosn't matter if it is showing on your report as paid if you have the satifaction document, that trumps the report.

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 05/12: TU: 722 | EQ: 712 | EX: 686
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession

Still Working On: Illinois Paid Tax Lien,
Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $3900, Citi/Home Depot $2000, Capital One Cash Rewards $1500, Capital One Secured $500, Credit One Bank $500. Total Utilization: 6%. AAoA: 1yr, 7mth. INQS: 8 TU, 8 EQ, 4 EX
Established Member
kofifi
Posts: 20
Registered: ‎03-02-2013

Re: how to raise score in 30 to 60 days

it is a state of Arkansas lien which somehow slipped through the cracks. The 30 days late were in september of 2012 on all 3 cards. (Death kind of hit me hard) So you are saying that I can give the loan office the confirmation number i received and as long as they can verify that it was paid that i am good to go?? my 3 credit cards add up to be 2000 dollars and i owe a little under a 1000 on all 3. Hopefully paying this gets me a little boost. Also i am reading that i need to keep over a 6% DTI on my cards... How many months does that need to be reported? From my understanding i need a 640 in order to get an approval.

tran 685
equi 675
exper 641
Valued Contributor
rckstrscott
Posts: 2,659
Registered: ‎04-25-2011

Re: how to raise score in 30 to 60 days


kofifi wrote:

it is a state of Arkansas lien which somehow slipped through the cracks. The 30 days late were in september of 2012 on all 3 cards. (Death kind of hit me hard) So you are saying that I can give the loan office the confirmation number i received and as long as they can verify that it was paid that i am good to go?? my 3 credit cards add up to be 2000 dollars and i owe a little under a 1000 on all 3. Hopefully paying this gets me a little boost. Also i am reading that i need to keep over a 6% DTI on my cards... How many months does that need to be reported? From my understanding i need a 640 in order to get an approval.


General rule is more that 1%, less than 10% on the util for the cards. For me, my best scoring happened when every card reported 0, and then I had one reporting a small balance, around 30 bucks.This kept my DTI low, because I only had one minimum payment of like 10 bucks for the DTI reasoning, and the other cards had zero balances and 0 payments.

 

If you are at 50 percent util, you could get 20-40 points once you only owe like, less than 200 dollars on the cards. The reported util changes every month, it doesn't matter what it was before, just what it is when they run your numbers. So get it low, and keep it low while you do the mortgage.

 

So; if i were you, I would write letters to companies that you have the lates with. The reps ont he phone, they have to say those things, but you can mail letters, find email contacts, whatever you have to do to get those lates removed.. even removing 1 or 2 will help.

 

Lates matter less every single month, and there is a year threshold where it matters even less (it is almost irrelevant at 2 years)

 

So: having just gone through this, getting an FHA after repairing my credit, I would do this:

 

  • Look online today for email contacts with the companies you have the lates and see if you can email executives, CEOS, things like that. Let them know WHY you were late, tug on the heart strings a little
  • Pay those cards down ASAP. You need the REPORTING to show the low balances, that takes roughly a month after you pay it down (Although you could rapid rescore if needed)
  • Investigate Arkanasas state liens and see if they will remove, or ways to try to remove this lien, you will get a BIG score boost if that is not showing.

You are on the cusp. 640 is possible, you would need things to go your way, but it isn't impossible. Paying down the credit cards and having that late age to 1 years JUST might get you to 640 (and it will go up incrementally monthly). Getting the lien removed would definitely do it.

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 05/12: TU: 722 | EQ: 712 | EX: 686
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession

Still Working On: Illinois Paid Tax Lien,
Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $3900, Citi/Home Depot $2000, Capital One Cash Rewards $1500, Capital One Secured $500, Credit One Bank $500. Total Utilization: 6%. AAoA: 1yr, 7mth. INQS: 8 TU, 8 EQ, 4 EX
Established Member
kofifi
Posts: 20
Registered: ‎03-02-2013

Re: how to raise score in 30 to 60 days

Thank you kind Sir... It is rather nice you giving me a little light at the end of this tunnel.

tran 685
equi 675
exper 641
Valued Contributor
rckstrscott
Posts: 2,659
Registered: ‎04-25-2011

Re: how to raise score in 30 to 60 days


kofifi wrote:

Thank you kind Sir... It is rather nice you giving me a little light at the end of this tunnel.


If you had 15 collection accounts and a ton of debt; the light would be dimmer, but 3 lates and one tax lien? In an ideal situation you could have those, or most of them, removed in 2 weeks.  It isn't likely, but it has happened.

 

I am not saying you will; you might not have any luck at all, which is why I said if it goes your way.

 

But you will 100 percent get a score boost going from 50 percent utilization to a sub 10 percent number on those credit cards. That isn't even up for debate. Revolving balances count for a large postion of your score. Reovling utilization and on time payments make up over 60 percent or so of your credit score in ideal situations. So. If you remove the lates and get the util down, your score could see a big boost. I got mine to 700+ and my tax lien, and 4 paid collection accounts were showing at the time I got the mortgage. It's doable

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 05/12: TU: 722 | EQ: 712 | EX: 686
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession

Still Working On: Illinois Paid Tax Lien,
Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $3900, Citi/Home Depot $2000, Capital One Cash Rewards $1500, Capital One Secured $500, Credit One Bank $500. Total Utilization: 6%. AAoA: 1yr, 7mth. INQS: 8 TU, 8 EQ, 4 EX
Member
FICO_addiction
Posts: 37
Registered: ‎06-08-2013

Re: how to raise score in 30 to 60 days

so how are things fairing for your situation? did you get a loan?

Starting: Transunion(620)Experian(625)Equifax(600)
Current: Transunion(632)Experian(635)Equifax(615)
GOALS: Transunion(780)Experian(800)Equifax(775)
Member
FICO_addiction
Posts: 37
Registered: ‎06-08-2013

Re: how to raise score in 30 to 60 days

ha...just realized you posted this today...well good luck im 30 and got approved last year for $75,000 mortgage(look for foreclosures). try bb&t they are lookingto loan right now!!! that who i have mine with. but yeah i agree with scott try to clean that state debt first.

Starting: Transunion(620)Experian(625)Equifax(600)
Current: Transunion(632)Experian(635)Equifax(615)
GOALS: Transunion(780)Experian(800)Equifax(775)
Established Member
Akosua
Posts: 46
Registered: ‎06-30-2013

Re: how to raise score in 30 to 60 days

rckstrrscott,

I'm kind of in the same predicament. I am getting ready to purchase my first and I have some questions about clearing my credit report before applying for hopefully and fha loan. You seem very insightful about this process and any advice from you will help. Thank you

 

Situation:

2007-graduated from college, high cc balances only making minimum payments.

2008- auto loan for $20,000

2009-entered all ccs into a debt management program except student loan and car note- paid all off as of 04/2013

2011- applied for and denied car loan for credit union

April 2013- applied and got car loan for $44,000 from same credit union student loans deferred due to current enrollment in masters program also Took out 3 TL,

Chase freedom - Cl$3500, balance 2,000 Homedepot/citi-$1250, 0 balance paid off after 3 months, CC from CU offered to me with new auto loan- CL $500, 0 balance paid off before first due date.

 

Credit scores in Jan 2013 lender pulled-Equifax 676, Experian 649, Transunion 640

Signed up for equifax SW and current FICO score 651.

My goal is to hit 700 range before October 2013 in preparation for a fha mortgage app, how can I get my score up between now and then. 

My credit report from Equifax shows 9 negative accounts, all with 0 balances paid off and one paid collections acct from Midland (old tmobile phone bill). it shows as balanced 648, settled for $409.  Should I contact midland and ask them to remove it from my report? Will that increase or decrease my score? 

Also the negative accounts are all closed accounts that reports a balance of zero  and some limit and are my oldest accounts. My most recent delinquency reported on those accounts is a 30 day late payment march 2011? Can I GW for the late payments to be removed from my credit report? Will it make a difference in my score with change or better to leave it as is?  Will the most recent late affect my score, all the other lates happened within the same time frame from early to mid 2009.

In the meantime I plan to pay down my chase freedom card to 4% util by next statement cycle. 

 

Chase Freedom-3.5K, NY MCU- 500, Chase Sapphire Preferred- 5.7K, Discover IT- 2K, AMEX BCE-6K, Citi simplicity- 7K
Scores: Equifax SW- 719 (Nov 2013)


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