03-14-2013 07:52 PM
Hey guys, wife & I are looking at a mortgage, USDA loan. My fako scores are in the low 600s, so I know that we "aren't there yet". I know generally there is no correlation between fico and fako scores, the last TU FICO that was pulled, I was a 603 Beacon.
I have the following amounts in Medical/Collections
They are all recently reported, within the last year, most occurred either in 2010 or 2011, but still reporting.
Other than these items, I have had maybe 2 30 day late pays in 2008, and 1 90 day, but everything else is current and pays as agreed.
Will removing the above items via just paying the CA's help my score or hurt? It's better showing "Paid/Paid in full" vs Collection-Upaid, right?
Oh, other than student loans, I have one revolving credit card with a $0 or $20 balance monthly, so my usage is low.
Thanks for all of your insights!
03-14-2013 10:25 PM
03-15-2013 08:27 AM
In this case, I mean, I'm willing to pay. Would it be easiest to call them, or deal with folks through Certified mail? I just want it taken care of as quickly as possible. Thanks once again.
03-15-2013 09:54 AM - edited 03-15-2013 09:55 AM
You can call them and ask if they will do a PFD. If they agree ask for it in writing. If they say they can't do that but will delete, it is a chance you would have to take. Oral agreements can be just as binding.
03-15-2013 10:53 AM
Thank you for the response. One final question hopefully, I just did the MyFico.com Scorewatch, and also pulled a TransUnion score.
Will pulling the score from MyFico affect my score, or show up as an inquiry? I don't think it will, but want to ensure.
There's no way to get an Experian Fico score, is there? My TransUnion is a 645, which is "doable" for a mortgage I guess, Equifax, is my low score. If I can get my Experian, I can see if I can qualify. I hate to put in anywhere until I'm "there", you know? I love this process,ha.
03-15-2013 11:13 AM
Pulling your own scores, or monitoring your own credit will not impact the scores themselves. These are soft inquiries. As for Experian, you can't buy a FICO score. There are some FAKO scores based on experian data I believe...but they aren't worth much.
03-15-2013 12:10 PM
The answer to "should I pay" has two separate aspects.
Just paying wont improve FICO score, as you dont pay off the derogs, you pay off the debt.
However, credit approval goes beyond a three-digit number. Presence of unpaid, delinquent debt can be a show-stopper regardless of FICO score.
Waiting for credit report exclusion of derogs shields them from easy view by simply pulling a credit report, but does not erase its condinued presence.
The presence of unpaid, delinquent debt always carries risk in future quest for credit.
03-15-2013 12:22 PM
Thanks RobertEG, I appreciate it. I'm definitely not "against" paying them off. In fact I want to pay them off. I owe it.
On the same token, if it will prohibit me from obtaining a mortgage in the short term, do I risk it? I just did the 5/3 Identity alert custom scenario, of having all of those "deleted", and it increased my score drastically. I know the score isn't the end all, be all. I want the debt gone. I also want my family to be in a home vs renting.
Thanks for your reply!
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.