rebuilding my credit hopefully soon

[Anonymous]

Hello,

I am new to this sight and just been doing a lot of reading. I am trying to rrebuild my credit because I would like to purchase a house using a VA loan. My lender I wsa going through said I needed to pay all of my collections and also pay down my credit cards. And then I would be able to be approved. He didnt mention anything about a minimun score. BUt as I been reading, I see that 620 is the minumum. Any advice would be helpful. The score stimulator sayd if I pay down my credit cards down to 90-100 percent that is how I would raise my score the highest.

[LS2982]

---

@Anonymous wrote:

Hello,

I am new to this sight and just been doing a lot of reading. I am trying to rrebuild my credit because I would like to purchase a house using a VA loan. My lender I wsa going through said I needed to pay all of my collections and also pay down my credit cards. And then I would be able to be approved. He didnt mention anything about a minimun score. BUt as I been reading, I see that 620 is the minumum. Any advice would be helpful. The score stimulator sayd if I pay down my credit cards down to 90-100 percent that is how I would raise my score the highest.

---

Welcome!

You'll find alot of useful information here, as there are good people here. I would recommend paying off your collections (and try for a PFD before you pay, because a paid collection is as negative as unpaid) and keep your util. on your CC's at 6-10%. To get your home it may not be neccessary for collections to be gone totally but to reflect "Paid in full" status on your CR. The big thing is keeping your CC's util. down and paying bills on time.

[Anonymous]

Thank you for your reply and advice. Would you recommend doing the credit card first or collections? Or does it matter?

[DI]

You should set your score goal higher than 620.  The higher your FICO scores the lower APR you pay for the loan. Having a 720 vs a 620 may save you a few hundreds of dollars each month.  Don't be in a rush to get a home.  Any money you can save by having a higher score is well worth the wait. 

[tntexans72]

---

@Anonymous wrote:

Thank you for your reply and advice. Would you recommend doing the credit card first or collections? Or does it matter?

---

I would pay down the CCs first cause that will improve your score. Pay it down to less than 10% UTIL and your score will jump. Than start working on the collections by contacting the original creditors. Good luck.

[Anonymous]

Yes I would like to get higher than 620 but wanted to get there first and then I would set another goal. But yes I do understand that the apr would be a big difference.

[Anonymous]

Okay that makes a lot of sense to do the cc's first and then collections.

[LS2982]

---

@tntexans72 wrote:

---

@Anonymous wrote:

Thank you for your reply and advice. Would you recommend doing the credit card first or collections? Or does it matter?

---

I would pay down the CCs first cause that will improve your score. Pay it down to less than 10% UTIL and your score will jump. Than start working on the collections by contacting the original creditors. Good luck.

---

I agree paying down the CC's will help boost your score then go after the CA's.