Will my score improve

[Anonymous]

Hello all!

I’m currently at a mid score of 570 for mortgage score and currently trying to get a mortgage. I had 12 collections account led (mainly medical) varying from 2-3 years old. I have paid to delete 8 of these accounts. Also I have paid my credit cards ($1500) down from 98% utilization to 10%. Should I see a pretty large point increase?

[Anonymous]

You will probably see around 75-100 points from going to maxed-out utilization to near top tier utilization.  Keep in mind that getting below 8.9% overall utilization is what yields the most points.  If you're at 10% now, dropping it another 2% could mean another 15-20 points. 

As far as your payment history, removing 8 of 12 major baddies is a great thing, but with 4 remaining (even 1 remaining) your score will not significantly increase.  You'd probably stand to gain about 75-100 points from the removal of all of your baddies, but when you only remove some of them your score will not improve much.

Bottom line IMO, from cleaning up all baddies and going from the worst utilization to the best, you'd expect to gain around 150-200 points total.  Since you're only able to combat the utilization at this time, look for 75-100 points.  Again, these are ballpark numbers and I'm just shooting from the hip.  Definitely see what you can do to get the rest of those negative items removed and you'll be sitting at mid 700's!

[Anonymous]

Thank you for the response!! My other question would be, even if those collections are close to the 5 year mark? Still pay for deletion?

[Anonymous]

Yes, collections will adversely impact your score for the full 7 years, so if your scores taking a nice jump in the next 2 years is worth the PFD for you, I'd say go for it.

[SouthJamaica]

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wrote:
Hello all!

I’m currently at a mid score of 570 for mortgage score and currently trying to get a mortgage. I had 12 collections account led (mainly medical) varying from 2-3 years old. I have paid to delete 8 of these accounts. Also I have paid my credit cards ($1500) down from 98% utilization to 10%. Should I see a pretty large point increase?

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Yes you should. But since you're talking mortgage you need to get your full MyFICO 3B report so that you can see what the actual mortgage scores are, once the positive  changes you are implementing have had time to report.

[Anonymous]

I do pull my full 3b and look at the mortgage scores. There are still 4 collections accounts on the account. They will not delete. Should I still pay these?

[Anonymous]

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wrote:
I do pull my full 3b and look at the mortgage scores. There are still 4 collections accounts on the account. They will not delete. Should I still pay these?

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Yes, most lenders will not proceed to closing (or even preapproval) with unpaids.  Do not even start the mortgage dialogue until these show balance zero, since youre gonna end up either A.  waiting for them to disappear anyway, or B.  being told by your LO they need to be paid.