I've struggled for years with my credit, but I've finally gotten it in line. I'm going to have under $5000 in credit left at the end of June, and I make a good enough salary for this to be something I can handle easily. My main focus will be about $2200 of this on two accounts that I cancelled years ago when I was in trouble. I plan on having them paid off by March 2010, which is when it will finally be 7 years since I made a late payment on any account.
I make about $47k a year now.
I will have under $5k in CC debit after all of the payments I'm making in June. (About $1200 total..with finance charges I'm thinking I'll really pay about $1000 off of the principals.)
My FICO score, which I checked with this site two weeks ago is an average of 709.
I'm wondering if I should report one of the mistakes on my report or not? I want to apply for a mortgage for my first home, I'm a single women who will be 30 this year.
It is a double reporting of an account I have now with Chase (which was WaMu, and Providian before that), which is making it look like there is $1600 more than I actuall owe.
I was going to take care of this right away but I'm a little worried it will effect my score. The accounts I have with Chase are both closed...so the credit isn't actually available to me, together the limit is just under $10k. It looks like I have 3 of this accounts, not 2...for a total credit limit of $15k.
I'm worried also because Bank of America went ahead and closed a line of credit I've had since 9/2000 that I paid off in 12/2006 because I hadn't used it in two years (closed in 12/2008.) I'm sure this has lowered my score a bit.
I have another card I've not used in years for a department store, which carries a $0 balance, and I will be going to make a small purchase this afternoon with it to make sure it remains open as it is now (I've had it since 1997 and I don't want it to close.)
The remainder of the $5000 credit is $2800 from Bank of America, which is an open account that I don't plan on using at all right now.
I'm current with all CC payments, as well as my student loan (which is large at $25k, but I have an interest rate of 1.625%, so my payments are not bad.) I've not had any late payment since 2003 on my CC and NEVER on my student loan.
Should I report that mistake and have it removed before I go for a mortgage preaproval? I'm at a loss. I'm so upset about the line of credit being cancelled, but there isn't much I can do about it.
I want to do the best thing possible because of applying for a mortgage, and 709 is a decent score for a lower mortage rate.
I'm not in a RUSH, as my parents will let me stay with them while I save more money up for downpayment and emergency funds...but being as it is the big 3-0 this year, I just can't take much more of this. I need to get my own place, and I want to apply in about 6 weeks.
