I am new to this, hoping for some good positive answers. Over the last year and a a half I have been cleaning up my credit. I am finally out of debit (yeah). I have seen a big jump in my FICO score over that time..Now, my scores are as follows T - 686, Eq - 678 and Ex - 687. Right now I am in the process of trying to get the CRA to either delete or reclass (hopefully to a good standings) 2 - 3 cap one cc's that were in adverse standings. My question is once they either delete or reclass do you thing my FICO score will increase? And if they do not reclass to good standings do you think I will be able to get a good interest rate when I apply for a mortage?
One last question. I had a judgement on my CR but after paying a credit restoration company it was remove after 6 mths. I have since paid this off. Over the last several mths since I have been receiving my CR it has not been on either of the 3. Do you think when my CR is pulled when I apply for a moratage it wull show up?
I have done the exact same thing over the last 2 yrs and with the programs available through some of the larger banks such as Wachovia, Bank of America, and HSBC you will qualify for a loan. I had an item that was a judgement for a car loan. I hired a bankruptcy attorney to secure the threat that the Lender may not receive a dime and was able to negoitiate from 11k to 4k for a pay off. It took about 60 days for all updates to go through and once they did the scores didn't until time pasted. I noticed that with deliquent items like that it takes time for the item not to report as negative before the score increases. Also as I mentioned above many of the larger banks receive tax breaks from the government for getting people with lesser scores into homes. I elected to go with Wachovia and they were willing to do 100% financiing with a CR of 580 as a midrange score. They also suggested if someone owes 15k to 20k bankruptcy and waiting 1 year is a good otption too. Another very important piece was to establish new credit. Either through a car loan, credit card, or student loan consolidation. I hope that helps!
Thanks for the info. I've been speaking to HSBC & WAMU so far and I will be able to get a loan at 6.5%, but I am just trying to get the best possible so, I will be able to get various options. Also, I have been told by various banks as well I need to establish NEW credit, but I am very lear right now I just DO NOT want to get back into debit. It has taken me 10 yrs to get out and now that I am out it feels so,so GOOD.. Another reason I do not want to apply for new credit is because I do not want it as a hit on my CR. But, I am thinking I will be applying for a secured cc in the next month or so.
bigmomma - Congrats on paying off your debt! The banks are correct, it's not enough to have no debt. To get a good interest rate and other terms on your mortgage, you need to have a recent history of handling credit well. That means getting a card or loan and making all payments on time, keeping your utilization down, etc. Good luck!
----------------- Bartender, bring another round of FICOtinis please!
With the scores you have I would wait until after I got a house to get new credit cards. 6.5% is not a bad rate. Plus within a year if you get into a low with no prepayment penalty you can refinance and probably find an even better rate. Establishing new credit is necassary but can be done over time.