Help with getting score up for mortgage

[Anonymous]

I just started using myfico and have been tracking my credit for about 8 months now. I was able to get 3 collections removed from my account and have paid off all of my remaining collections. I currently have two collections showing and a chargeoff for another credit card that I paid off last month. Since starting this process 8 months ago my scores have gone up from 560's to the 620's for two and one in the 640's. My mortgage scores however have only moved 10 points during that time. I curently am paying on a auto loan and have two closed credit cards im still paying off. I also have one open credit card that i PIF. I am currently in school so my student loans are deferred for 4 years. Two of my student loans i missed 9 months of payments becuase I was out to sea and thought they were deferred. Those missed payments make up the majority of my late payments. I would love to hear any advice anyone has that would get my credit scores high enough to buy a house. I am debt snowballing all of my wife's and I debt and everything besides my car will be paid off in december. Thanks!

[Anonymous]

My advice is to plan to rent for another year.  While you are doing that, do two things:

(1)  Continue to pay off all your CC debt (including the debt on closed cards). When you finally have paid off all your debt, continue moving forward to use one card for small purchases, with your other cards at $0.

(2)  Work with people here (especially people in the rebuilding forum) on getting all your derogs removed.  The paid off collections will substantially hurt your mortgage scores.  So will your many lates.  Creditors do not have to remove them, but there are strategies for increasing the chance that they might (ask the good folks in Rebuilding about Goodwill Letters).

Finally, explore the possibility of opening two more credit cards.  I am not certain, but I believe that you have exactly one open credit card.  The mortgage models really like it when you have most of your credit cards (over 51%) reporting a $0 balance.  That's impossible to do with one card.  You may have to delay this step for a few months until your scores are a bit higher.  But be sure that if you do decide to do this, you open the cards at least 7 months before you plan to go through mortgage pre-approval.