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need serious advice and help

need serious advice and help

im currently trying to qualify for a home loan and my realtor states I need a 620 credit score (middle score) i currently had a 619, 612, and 579 until my aunt who's card im an authorized user on used her card that I had just paid off and put it over the limit which dropped my 619 to a 599. my 612 score recently came up to a 622 so now my scores are as follows 622, 599, 579 sadly.

 

I feel like I just cant win!

i have 2 secured cards = first premier=300, a 500 secured card with a credit union, and my aunt cap one card with a 750 limit. oh and a fingerhut account at 200limit.

 

i have so many collections maybe like 18 mostly medical bills , tmobile, repo car, student loans which are in good standing,

 

im paying the cards down below 20% and fingerhut has no balance. howcan I raise my score. im so ready to be debt free or as close as i can to it

 

why does it take so long for the credits to update

 

one gets updated and ges up and for the same thing another updates and goes down im so confused.

 

 

Message 1 of 8
7 REPLIES
Senior Contributor

Re: need serious advice and help

I'd suggest posting in the rebuilding section if you want to yield the best advice for your situation.  Your scores in the 500's indicate that you likely have some negative items on your credit reports.  Utilization and paying down your balances to below 20% IMO are the least of your problems considering your credit limits are extremely low.  What I mean is that's easily remedied, where eliminating negative items can take a lot more work and time.  Honestly this isn't what you want to hear, but I would put off considering a mortgage for probably a good year.  While you were told you need at least 620 type scores, you really want to be about 100 points higher than that to qualify for the best rates or you'll be paying thousands even tens of thousands of dollars more in interest over the life of your loan.  In the grand scheme of things, it's not worth that money if holding out for another year could allow you to avoid that for the next 30 years. 

Message 2 of 8
Community Leader
Senior Contributor

Re: need serious advice and help

The first thing you need to is take a breath and realize you have a lot of bad stuff on your report.  The best thing you can do is not put pressure on yourself to get your reports all cleaned up in a crazy short period of time.  It's like somebody who has been in a car wreck and who is insisting he needs to run a marathon next week,  The doctor is gonna have to tell him that he WILL be able to run that marathon but not next week.  He has broken bones and all kinds of other stuff right now. 

 

You're like that guy. In fact, you're stressing out so much over the marathon that you are unable to do the basic healing things that the doc needs you to do if you are gonna get well.

 

So here are the things you need to do (slowly and calmly).

 

Print out your three credit reports.  If you don't know how to get these for free, people here can help.

 

Read through them and make sure you understand them.  You may need help.

 

Based on the reports, make a list of your credit cards.  It sounds they are these but I do not know for sure.

 

CARDS IN MY NAME

First Premiere.    Current Balance _____      Credit Limit _______

CU card.             Current Balance _____      Credit Limit _______

Fingerhut          Current Balance _____      Credit Limit _______

 

CARD IN SOMEONE ELSE'S NAME (Authorized User cards)

Cap One    Current Balance _____      Credit Limit _______

 

You'll need to fill in all those blanks.

 

The Cap One AU card is creating a problem for you.  So you need to find out whether your aunt is willing to pay it down to $0 and then keep it reporting at $0 for the next six months.  There are ways she can keep using it but still have it report $0.  If she or you don't understand how that would work, let us know.

 

If she is not willing to keep it at $0, then you need to be removed from it.  Before you do that, you need to find out how old the AU card is.  On your reports, how does the "Date Opened" read?

 

For your other cards, you need to pay them all down to $0 and then continue to use one card but keep the balance of that one card reporting a small number ($5-$20).  All cards at $0, except for one card at $5-$20, with the AU card either removed from your report or reporting at $0.

 

While you are working on that, you need to make a list of your other accounts.  Separate those that are in good standing now from the ones that are not.  Make a list of each.  Of your "bad" accounts make a list of all these bad marks.  Even the accounts that are in good standing now might have some bad marks (late payments in the past, say), so make sure you can list what those are.

 

Right there that gives you plenty to do.  Work on that and come up with very clear lists and then plans of actions.  The people here can probably help you once you do that, but it will be hard for them to do anything until that gets done.

Message 3 of 8
Moderator

Re: need serious advice and help

OP, don't lose hope.  It may be easier to increase your score than you think. The rebuilding section here has great tips and some people can get their scores to at least 620 in short order, depending upon what is on your CR that needs to be fixed.

 

The next thing:  I think you are looking at FICO 8 scores and mortgage lenders do not look at FICO 8s.  They look at: (From Revelates post in the mortgage section

http://ficoforums.myfico.com/t5/Mortgage-Loans/FICO-scores-used-for-mortgage-and-where-to-obtain-the...

We refer to these in a shorthand way as "mortgage scores" and they are very different from your FICO 8s. 

 

The FICO scores used for mortgages

 

  • Equifax Beacon® 5.0

  • Experian®/Fair Isaac Risk Model V2SM

  • TransUnion FICO® Risk Score, Classic 04

These are sometimes listed on the tri-merge mortgage report as follows:

 

  • Equifax/FICO classic V5 FACTA
  • Experian/Fair Isaac (Ver. 2)
  • Transunion/FICO Classic (04)

Note: they have been commonly referred to on the myFICO forums and elsewhere as:

 

  • EQ 04 aka FICO 5 (on the myFICO report)
  • EX 98 aka FICO 2 (on the myFICO report)
  • TU 04 aka FICO 4 (on the myFICO report)

 

Note:  mortgage lenders use the mid-mortgage score and they always pull all three scores. If you have more than one applicant on the application, they will use the lowest mid-mortgage score of the applicants.

 

You can get details of all kinds of mortgage and real estate related answers in the mortgage section.

 

One thing to be aware is that NOT all mortgage loans are credit score sensitive.  Specifically, FHA and VA loans are NOT score-sensitive. You are approved or not based on your qualifications and there is a minimum credit score requirement that is dictated by the lender you use.  For example, I have mortgage lenders that will issue an FHA-insured mortgage loan (as long as you meet the rest of the requirements) if your mortgage mid-score is 580 or more without a hit to the interest rate.

 

Having said that, if you decide you want a conventional mortgage loan, then know that conventional mortgage loan interest rates are highly sensitive to your score and the lower your score, the higher the interest rate. In addition to that, if you get PMI, the PMI rate is much, much higher (not a good thing) if your score is low. Visit the mortgage section for details. 

Message 4 of 8
Super Contributor

Re: need serious advice and help


CreditGuyInDixie wrote:

The first thing you need to is take a breath and realize you have a lot of bad stuff on your report.  The best thing you can do is not put pressure on yourself to get your reports all cleaned up in a crazy short period of time.  It's like somebody who has been in a car wreck and who is insisting he needs to run a marathon next week,  The doctor is gonna have to tell him that he WILL be able to run that marathon but not next week.  He has broken bones and all kinds of other stuff right now. 

 

You're like that guy. In fact, you're stressing out so much over the marathon that you are unable to do the basic healing things that the doc needs you to do if you are gonna get well.

 

So here are the things you need to do (slowly and calmly).

 

Print out your three credit reports.  If you don't know how to get these for free, people here can help.

 

Read through them and make sure you understand them.  You may need help.

 

Based on the reports, make a list of your credit cards.  It sounds they are these but I do not know for sure.

 

CARDS IN MY NAME

First Premiere.    Current Balance _____      Credit Limit _______

CU card.             Current Balance _____      Credit Limit _______

Fingerhut          Current Balance _____      Credit Limit _______

 

CARD IN SOMEONE ELSE'S NAME (Authorized User cards)

Cap One    Current Balance _____      Credit Limit _______

 

You'll need to fill in all those blanks.

 

The Cap One AU card is creating a problem for you.  So you need to find out whether your aunt is willing to pay it down to $0 and then keep it reporting at $0 for the next six months.  There are ways she can keep using it but still have it report $0.  If she or you don't understand how that would work, let us know.

 

If she is not willing to keep it at $0, then you need to be removed from it.  Before you do that, you need to find out how old the AU card is.  On your reports, how does the "Date Opened" read?

 

For your other cards, you need to pay them all down to $0 and then continue to use one card but keep the balance of that one card reporting a small number ($5-$20).  All cards at $0, except for one card at $5-$20, with the AU card either removed from your report or reporting at $0.

 

While you are working on that, you need to make a list of your other accounts.  Separate those that are in good standing now from the ones that are not.  Make a list of each.  Of your "bad" accounts make a list of all these bad marks.  Even the accounts that are in good standing now might have some bad marks (late payments in the past, say), so make sure you can list what those are.

 

Right there that gives you plenty to do.  Work on that and come up with very clear lists and then plans of actions.  The people here can probably help you once you do that, but it will be hard for them to do anything until that gets done.


+1

I agree, this is good advice.

FICO8 EQ 725 TU 752 EX 736 Total revolving credit 454300
Message 5 of 8
Contributor

Re: need serious advice and help


wantbetter2016 wrote:

im currently trying to qualify for a home loan and my realtor states I need a 620 credit score (middle score) i currently had a 619, 612, and 579 until my aunt who's card im an authorized user on used her card that I had just paid off and put it over the limit which dropped my 619 to a 599. my 612 score recently came up to a 622 so now my scores are as follows 622, 599, 579 sadly.

 

I feel like I just cant win!

i have 2 secured cards = first premier=300, a 500 secured card with a credit union, and my aunt cap one card with a 750 limit. oh and a fingerhut account at 200limit.

 

i have so many collections maybe like 18 mostly medical bills , tmobile, repo car, student loans which are in good standing,

 

im paying the cards down below 20% and fingerhut has no balance. howcan I raise my score. im so ready to be debt free or as close as i can to it

 

why does it take so long for the credits to update

 

one gets updated and ges up and for the same thing another updates and goes down im so confused.

 

 


It's not the limits or balances that are holding your scores down.  It's the 18 collections and repo that is holding it down.

 

Until you clear those up, utilization isn't going to be a factor.

 

Take yourself off as an AU from the card and your score MIGHT go up.  That still doesn't address the bigger issue.

 

Message 6 of 8
Contributor

Re: need serious advice and help

I agree with all the sage advice given. Here's the deal. You're in a better position than you were in yesterday. I was where you were six months ago. Worse actually. No FICO, 400 FAKOs. Zero credit. 12 baddies totalling something like 12k. It was a mess. BUT. I layed it all out there. I just took them one baddie at a time. GW letters. DVs. EEs. Six months later and I *think* I'm about to be baddie-free. And my scores are heading around 700 even though my AAoA is like 4 months. The collections are KILLING you and you have to do everything you possibly can to get them under control. PFDs... Disputes... Settle if you have to. There no amount of "good" you can do to outweigh those collections. So they gotta be addressed and gotta be the only priority,  

Starting FAKO: 463 (July 2016)
Current FICO: 747 EX, 642 EQ, 613 TU (December 2016)

Can the last two update already?! I have a rebuild to complete.
Message 7 of 8
Highlighted
Super Contributor

Re: need serious advice and help


dlm0820 wrote:

 

 


It's not the limits or balances that are holding your scores down.  It's the 18 collections and repo that is holding it down.

 

Until you clear those up, utilization isn't going to be a factor.

 

Take yourself off as an AU from the card and your score MIGHT go up.  That still doesn't address the bigger issue.

 


Yes, the negatives are holding down the score.

 

However the AU account needs more information before deciding whether to remove it or not. Are there any lates on the Dear Aunt's account? If not, then the over-limit situation may be temporary and in the long run, having a good sponsor who gives OP an AU account is helping the OP scores to look better.

 

Of course, there are certain score models which discount or remove the benefit of an AU account, and in the long run OP needs to work on improving OP's score directly.

 

We are all hoping for the best for the OP.

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727 FICO Simulator 2014: $20k balances = 812 FICO.
March 2017 $20k on $300k 6% util EQ 824 TU 824 EX 815

5 / 24 counting down to 1 Nov 2017... wait I guess it's 18 Dec 2017 to get 4/24
Message 8 of 8