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villumanati
Posts: 1
Registered: ‎02-01-2008
0

Complex Credit situation

Ok on September 11th 2007 i had a 787 credit score. and no debt but around 2000 in student loans. On Sept. 12 i purchased a car for 11,000 On October 1 purchased a house (as my personal residence) Things started to get tricky on November 26th. To make a long story short I borrowed about 25,000 from my credit card to purchase another rental property in the Cincinnati market. I didn't end up getting the house because they wouldn't accept my lowball offers. So since November 26th i have been biding on properties in hopes of getting one. Currently i have a property under contract to buy, but is being delayed because of title issues. My plan is once this deal closes i will do a cash out refinance and put a mortgage on the the house to pay back the credit card company. Yesterday however I ran my credit and I had a VANTAGE SCORE i believe was 650 (which was pretty low) if it wasn't 650 it was one category away from being the worst rating. I would assume that the VANTAGE SCORE should translate into a similar Fico score even though they are calculated differently. http://www.bankrate.com/brm/news/debt/debtmanageguide/vantage-scores2.asp?caret=40 Keep in mind that I have had a credit card since i was 16 and have always paid my bills on time AND in full and also I still have every penny of the money that I borrowed in a money market savings account. My question is 1. Will i even be able to qualify for the cash out refinance in the first place so I can pay back the money to the credit card company? (there is significant equity in this property if i get it at my purchase price) 2. Will my credit score return to the upper 700s(Fico) once I pay back the loan? If not how long will it take you think to get a 700 (Fico)? Any help is greatly appreciated!
Senior Contributor
Sylviatob
Posts: 4,596
Registered: ‎09-14-2007
0

Re: Complex Credit situation

Personally, I'd strongly recommend that you pull all 3 credit reports from right here at myFiCO and look at what your true FICO scores are(the scores that 90% of lenders use in their credit granting decisions. Or some variation of the FICO scoring model).

The Vantage Scores are what we call FAKO scors. And are generally, but not always, MUCH higher than your true FICO scores. The difference in FACO vs. FICO for me is 45-60 points! (FAKO higher than FICO).

Phew! Financing real estate deals with a credit card. That's scary.

Good luck to you, and welcome to the forum! :smileyhappy:
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