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Member
Posts: 12
Registered: ‎09-06-2013
0

Possible increase FICO Score

I am in the early stages of wanting to buy a house.  I am unable to apply do some credit issues per FHA guidelines. 

 

When I first inquired, I had a score of 570(average) and per FHA guidelines I need a min of 620 to get pre-approved for the mortgage.  That was at the end of July.  Since that point, I have done a lot to hopefully improvie my score.  Here those are:

  1. I had two credit cards over limit, I have since paid those to get under the credit limits
  2. I paid off(bud didn't close) two other revolving acounts
  3. I had a late payment removed from my Toyota Lease(FHA requires no lates), Toyota was kind enough to remove late payment altogether, so I have no lates on credit
  4. I paid a medical collection to zero, and just called them today and they are actually going to remove it entirely from my bureaus as a good will jesture.
  5. I have not charged anything new and any other accounts have been paid on time and have not applied for new credit either.

Everyhting hasn't hit the bureaus yet, but for the credit experts out there, do you think what I have done will increase my score by 50 points or more.  I am 33 and have 15 years of credit history.  A lot of accounts are over 5 years old.  Thanks for your expertise.

Moderator
Posts: 22,406
Registered: ‎01-17-2008
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Re: Possible increase FICO Score

[ Edited ]

Welcome to the forums.

 

What is the utilization remaining on the maxed out cards?

 

How old was the late payment?

 

How old was the collections?

Member
Posts: 12
Registered: ‎09-06-2013
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Re: Possible increase FICO Score

Utilization is around 55%, I am working on getting that down as well.  Late payment was 10 months ago and collection was 3 months old, so those will no longer/will be no longer on credit as a derogotory item.

 

Member
Posts: 12
Registered: ‎09-06-2013
0

Re: Possible increase FICO Score

My debt to income ratio is approx. 25%

Moderator
Posts: 22,406
Registered: ‎01-17-2008
0

Re: Possible increase FICO Score

DTI isn't scored by FICO.

 

Getting the late and the collection removed would probably get you well over 50 points being as new as they are.  YMMV and your entire credit profile plays a part.

 

Your utilization is very high.  Bring that down to one card reporting at 9% or below and the rest at 0 and you will see a very good score bump.

 

What are your FICO scores now?  The higher your scores the bigger impact anything has on your score.  Especially down.

Member
Posts: 12
Registered: ‎09-06-2013
0

Re: Possible increase FICO Score

Transunion 590

Equifax 575

Experian 580

 

All pretty consistant.  I know my utilization is high but I can't pay much more down while saving for down payment.  I know if I can get my scores up to minimum per FHA guidelines, I think I'll be fine for approval.  I have long employment history with current employer, good income, and a dti of 30% which will include a 1200 mortgage pymt including taxes and insurance.  Just need my scores to increase a little more.  Hoping to get pre approved by nov 1 if my credit scores improve

Moderator
Posts: 22,406
Registered: ‎01-17-2008
0

Re: Possible increase FICO Score

As soon as those are removed, and hopefully it won't be too long, your scores will go up.

 

It can take 90 days for the CRAs to update.

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