Unfortunately FICO scoring does not reward you for paying off charge-offs. I know it stinks! FICO scoring wise, charge-offs and collections rather paid or unpaid tank your scores especially if they are less than two years old. Do you have any credit cards? If yes, what are the credit limits and balances on each of them? Do you have any other bad stuff on your reports?
I am searching for a mortgage and am in trouble. I pulled my credit report and was middle score 579. I spoke to a rep at countrywide and said my score was too low for any type of loan b/c my score was 505. I was late 7 days with my car payment. I had 2k total within 3 charge off account. I paid those accounts in full on 08/30/07. What can I do to raise my score enough in order to shop for a mortgage loan.
I do not have any CC's. I am afraid that if I apply and get denied that another inquire will negatively affect my score. Is that safe to assume. Or should I try to obtain a CC to rebuild some good payment history?