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I have searched through the fourms and across the Internet...but when should I pull my FICO score? And what timeframe of steps should I perform to minimize just sitting around wait for old bad item to be removed?
Background Information
What do I do now? Pull my credit report from all 3 CRA's? Run a second Power Score from MyFICO? How oftern and what order should I do this this?
The clock is ticking for me an needing atleast a 660 to qualify for new house (selling current one). Would like to take advantage of the housing credit.
Looking for a little insight from those who has done this before me.
Hi Workinhard...
There really isn't any right or wrong thing to do. Some of it comes down to how much money you want to spend on scores and reports.
Did you pull all your free reports in November?
Do you feel that you need to see your reports again in order to keep working on them?
Since you know what your EQ FICO is, you may want to pull a TU report and score. Be aware, however, that the TU score that consumers can buy is the TU98. A lot of mortgage loan officers pull TU04, and that one is not available to us.
What midscore are you shooting for in order to get a mortgage? Do you have any collection accounts or charge offs that aren't paid? Or, are they all paid? You could be sending out pay for delete (PFD) letters or goodwill (GW) letters, depending on their status.
Do you have any credit card debt? Just trying to think of ways for you to get that score up.
LynetteM,
Thank you for responding back so quickly! I know there were alot of questions asked on my part that would require more information.
My process started by pulling my free CRs the beginning of November 2009 in the hopes of getting a jump on the process of buying our second home. It was a much easier process 5 years ago when we purchased our first home. Neither my wife or I had to worry as much about our CBRs since we knew people inside the bank. Now we are being told that they will not be able to do anything for us unless I have a FICO of 660 or better. That still says nothing to what the rate would be.
My rationale for trying to decide if I should pull my CBRs or FICO is that the last time I did this was November 2009. Since then I have sent multiple letters the CRAs...which multiple things have been changed or removed. I would really like to verify that my fruitful work has paid off. Nothing would be worse for me and my timeframe to think something has been removed....but it has not been removed. Especially, since I am not receiving many FICO Score Watch Alerts.
To be completely honest with you, my wife (wannaupgrade, a stay-at-home mom) and I are both in the situation...trying to overcome late payment history in the past. Most will begin to fall off starting next year thru 2014. I had a collection in November 2009 that I immediately paidoff and received a letter stating it was being completely removed from my CBR. After that we diligently, searched and paid $400 worth of medical bills that were waiting to bite us on our CBRs. Now, there is nothing out there against either of us! :-)
Several years ago (8-10 years) we were buried in CC debt from college ($14,000). We made a pact to cut all our cards and use CCCS to get our lives back without BK. We got ourselves into this mess...we needed to get ourselves out! Two year ago, we completed the program! Our reward was one CC for emergency purposes. It only has a $500 limit. At times the balance has been as high as $560, but is currently at $60 (12% util). That will be 0% util by the end of today since I am waiting for a payment to post.
You are correct...I could be sending GWs right now. One of which is the bank that has our current mortgage. One interesting thing we did yesterday was add my wife to my CC as an authorized user since her score was hurting due to lack of revolving credit. I do understanding that anything bad could tank both of us, but I have no intention on let that card get above 20% util atleast thru the process of acquiring a mortgage for the new home. Thinking about doing the reverse for me on her JC Pennies Card since her credit jumped significantly when they up'ed her limit. That card has 10% util.
Any tips?
@WorkinHard wrote:LynetteM,
Thank you for responding back so quickly! I know there were alot of questions asked on my part that would require more information.
My process started by pulling my free CRs the beginning of November 2009 in the hopes of getting a jump on the process of buying our second home. It was a much easier process 5 years ago when we purchased our first home. Neither my wife or I had to worry as much about our CBRs since we knew people inside the bank. Now we are being told that they will not be able to do anything for us unless I have a FICO of 660 or better. That still says nothing to what the rate would be. I know that many banks have been raising their FICO minimums. We still see required minimums at 640, however, and sometimes still even 620. You may want to scout around a bit and ask about minimum FICOs with other lenders. Don't have them pull your reports yet, but visit with loan officers and see what minimum FICOs their underwriters want. You may find a lender that doesn't require 660. For FHA, your interest rate won't vary based on FICO.
My rationale for trying to decide if I should pull my CBRs or FICO is that the last time I did this was November 2009. Since then I have sent multiple letters the CRAs...which multiple things have been changed or removed. I would really like to verify that my fruitful work has paid off. Nothing would be worse for me and my timeframe to think something has been removed....but it has not been removed. Especially, since I am not receiving many FICO Score Watch Alerts. It certainly won't hurt anything if you pull your reports. Those are not hard inquiries and won't count against you. It might be worth the small cost for peace of mind.
To be completely honest with you, my wife (wannaupgrade, a stay-at-home mom) and I are both in the situation...trying to overcome late payment history in the past. Most will begin to fall off starting next year thru 2014. I had a collection in November 2009 that I immediately paidoff and received a letter stating it was being completely removed from my CBR. After that we diligently, searched and paid $400 worth of medical bills that were waiting to bite us on our CBRs. Now, there is nothing out there against either of us! :-) Sounds as if you're off to a good start by getting on top of things...especially those that haven't hit your reports yet.
Several years ago (8-10 years) we were buried in CC debt from college ($14,000). We made a pact to cut all our cards and use CCCS to get our lives back without BK. We got ourselves into this mess...we needed to get ourselves out! Two year ago, we completed the program! Our reward was one CC for emergency purposes. It only has a $500 limit. At times the balance has been as high as $560, but is currently at $60 (12% util). That will be 0% util by the end of today since I am waiting for a payment to post. Good job on taking care of that debt...and on staying out of debt. To maximize your FICO, pay all but a few dollars of your balance off before it is reported to the credit bureaus. What type of card do you have? Does it report the statement balance?
You are correct...I could be sending GWs right now. One of which is the bank that has our current mortgage. I know...Goodwill letters are time consuming and not always fruitful. But...when one of them does work...you will be elated, and it will make a difference. It often takes repetition...and it always takes patience.
One interesting thing we did yesterday was add my wife to my CC as an authorized user since her score was hurting due to lack of revolving credit. I do understanding that anything bad could tank both of us, but I have no intention on let that card get above 20% util atleast thru the process of acquiring a mortgage for the new home. Thinking about doing the reverse for me on her JC Pennies Card since her credit jumped significantly when they up'ed her limit. That card has 10% util. My husband and I are both AUs on each other's cards. Be sure you keep them clean.
Any tips? Be patient. Look around at other lenders. Work on getting the bad stuff goodwilled off. In your letters, take responsibility. Tell them how far you have come, and tell them it is keeping you from buying another home. And, remember...not only control the credit card debt, but control the reporting. It is only what shows up on the statements (in most cases) that is reported and counted in utilization. Don't have any credit card debt showing other than a few dollars on one card, and then pay that off as soon as it posts. Hang in there...
LynetteM,
I cannot thank you enough for all of the information you have provided me. It is such a daunting task to repair you credit without understanding the system. We have learn our lesson and will do everything we can to make it to the 700 Club.
Time to work on GW letters!