topic Re: Help rebuild/ mortgage scores in Understanding FICO® Scoring

Help rebuild/ mortgage scores

Anonymous — Thu, 22 Apr 2021 20:10:34 GMT

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Hey guys, I recently paid off all my charge offs trying to get my mortgage score up. After the updates it should be 2%-3% utilization. Do we think this is enough to get the Experian closer to 620-640?

What else can I work on to increase my chances? I have quite a few late payments that are on my report unfortunately as well as a collection that is being deleted.

Re: Help rebuild/ mortgage scores

tooleman694 — Fri, 23 Apr 2021 14:06:09 GMT

I was close to your situation back in Jan, I got my util down to 29 percent and that was worth about 60 points on my EX Mortgage score.

Re: Help rebuild/ mortgage scores

Anonymous — Fri, 23 Apr 2021 15:21:16 GMT

That would be awesome. I just saw that the collection was deleted and Experian went up to 601 now.

Re: Help rebuild/ mortgage scores

SouthJamaica — Fri, 23 Apr 2021 15:30:19 GMT

@Anonymous wrote:
056276F0-C8AE-4B45-98E5-8A30D17C17CF.jpeg

035D2784-49CC-432A-812C-0505E6DD5A7F.jpeg
Hey guys, I recently paid off all my charge offs trying to get my mortgage score up. After the updates it should be 2%-3% utilization. Do we think this is enough to get the Experian closer to 620-640?

What else can I work on to increase my chances? I have quite a few late payments that are on my report unfortunately as well as a collection that is being deleted.

Well we don't know what's in the rest of your file, but going from 66-69% to 2-3% revolving utilization should give you a big score boost.

Re: Help rebuild/ mortgage scores

House2021 — Fri, 23 Apr 2021 23:22:09 GMT

Please keep us posted and let us know. I'm doing the same thing, paying all charge offs to get a mortgage, I'll let you know when mine updates, I paid it two weeks ago and am just doing the waiting game now

Re: Help rebuild/ mortgage scores

Anonymous — Sat, 24 Apr 2021 08:26:18 GMT

@Anonymous wrote:
056276F0-C8AE-4B45-98E5-8A30D17C17CF.jpeg

035D2784-49CC-432A-812C-0505E6DD5A7F.jpeg
Hey guys, I recently paid off all my charge offs trying to get my mortgage score up. After the updates it should be 2%-3% utilization. Do we think this is enough to get the Experian closer to 620-640?

What else can I work on to increase my chances? I have quite a few late payments that are on my report unfortunately as well as a collection that is being deleted.

@Anonymous How much is the chargeoff that's being paid? GW the lates & implement AZEO.

Re: Help rebuild/ mortgage scores

Anonymous — Sat, 24 Apr 2021 16:30:27 GMT

The charge offs total is $7180 which will leave a balance of $9 on the one credit card.

Re: Help rebuild/ mortgage scores

Anonymous — Sat, 24 Apr 2021 19:42:41 GMT

@Anonymous wrote:
The charge offs total is $7180 which will leave a balance of $9 on the one credit card.

@Anonymous I think you'll have a nice increase.

Re: Help rebuild/ mortgage scores

Anonymous — Sat, 24 Apr 2021 19:46:46 GMT

What was the most recent late?

Re: Help rebuild/ mortgage scores

Anonymous — Sat, 24 Apr 2021 21:41:15 GMT

April 2020, trying to get it deleted but not having much luck so far.

Closing wouldn't happens until December the earliest.

Re: Help rebuild/ mortgage scores

Anonymous — Sat, 24 Apr 2021 22:02:09 GMT

@Anonymous wrote:
April 2020, trying to get it deleted but not having much luck so far.
Closing wouldn't happens until December the earliest.

@Anonymous you should've gotten back some this month then.

Re: Help rebuild/ mortgage scores

Anonymous — Mon, 26 Apr 2021 17:13:00 GMT

Probably but it's hard for me to say because I had taken a balance down on a card as well for that month but it had went up from 565 to 588 and now 600

Re: Help rebuild/ mortgage scores

nwa479 — Wed, 28 Apr 2021 03:00:31 GMT

I gained about 40 to 60 points on my mortgage scores in the past 6 months by improving my utilization from 55 percent to 1 percent. I'm stuck at about 660 now but have one paid collection holding my score down. Also at AZEO for the past month but with not much additional increase.

Your result may be different but improving the utilization number will help.

Re: Help rebuild/ mortgage scores

tayloreat713 — Thu, 27 May 2021 14:40:00 GMT

Hello!

This info is very helpful. I'm also trying to improve my mortgage score. I was told paying off my charge off's and or collections will NOT help my score unless they are also deleted. As you can see my utilization is highly but that is because my charge off's and collections are included in that calculation. Is it safe to say paying off my collections and charge off's would help my utilization in turn improve my score? If that is the case should I pay them all off at once or in increments? Please HELP!!

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Re: Help rebuild/ mortgage scores

Anonymous — Thu, 27 May 2021 15:15:37 GMT

@tayloreat713 wrote:
Hello!
This info is very helpful. I'm also trying to improve my mortgage score. I was told paying off my charge off's and or collections will NOT help my score unless they are also deleted. As you can see my utilization is highly but that is because my charge off's and collections are included in that calculation. Is it safe to say paying off my collections and charge off's would help my utilization in turn improve my score? If that is the case should I pay them all off at once or in increments? Please HELP!!

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@tayloreat713 paying a collection offers no score benefit unless it is deleted (PFD), and then it has to be all of them usually. Paying a chargeoff does offer a Score benefit, but if it has been unpaid for a very long time can cause a decrease.

Re: Help rebuild/ mortgage scores

House2021 — Thu, 27 May 2021 15:28:33 GMT

Personally when I paid charge offs off and decreased my utilization, it increased my scores, I did have one that didn't give much benefit when I was already below 50 percent utilization but the majority improved my scores, particularly as I went to below 50 percent utilization, I saw the best gains with my Experian scores which was my mid and is now my highest mortgage score.

Re: Help rebuild/ mortgage scores

House2021 — Thu, 27 May 2021 15:36:16 GMT

I agree with what birdman7 said, although i personally had disputed all CO in January so they were recently updated anyways (rookie mistake), so I only saw increases with each charge off, except possibly one, with that particular one I did see an increase in ficos but my mortgage score was co-occurring updates with a decent gain to my other scores but only a 6 point gain to Equifax that occurred with the removal of my very last collection (I suspect I gained more with deleting my last charge off then had a reduction due to the charge off reporting)

Re: Help rebuild/ mortgage scores

tayloreat713 — Thu, 27 May 2021 15:45:37 GMT

In that case it doesn't hurt to see what happens if I pay a charge off as well as decrease my utilization by paying off another one of my credit cards. I'm in the unfortunate position that my accounts that are charged off or in collections those creditors will not agree to a pay for delete. If so, I would have done that last year. There has to be a way for me to increase my mortgage scores if my utilization is lowered even if I can't get them deleted. I believe my scorecards are or have not flipped which is causing my scores to remain the same no matter what I've done recently.

Re: Help rebuild/ mortgage scores

Anonymous — Thu, 27 May 2021 15:52:53 GMT

Yeah it's kind of complicated and many factors have interaction. From the best I can tell, it appears that if it hasn't updated in a while then when it updates, that costs you points for increasing the TPOD, total period of delinquency.

however there's another metric the amount owed on delinquent accounts, so the larger the amount is that you're paying down, the larger the increase. So, if you have both, the increase & the decrease, your result is net of course.

In the example given by @House2021, the disputes were already done which caused the TPOD updates and corresponding score decreases, so TPOD increase and score decrease was not a concern subsequently. All that was left were the increases from reducing the amount owed on delinquent accounts.

I hope this is explained well enough?

Re: Help rebuild/ mortgage scores

Anonymous — Thu, 27 May 2021 16:35:10 GMT

@tayloreat713 wrote:
In that case it doesn't hurt to see what happens if I pay a charge off as well as decrease my utilization by paying off another one of my credit cards. I'm in the unfortunate position that my accounts that are charged off or in collections those creditors will not agree to a pay for delete. If so, I would have done that last year. There has to be a way for me to increase my mortgage scores if my utilization is lowered even if I can't get them deleted. I believe my scorecards are or have not flipped which is causing my scores to remain the same no matter what I've done recently.

@tayloreat713 The effects of chargeoffs on utilization are not perfectly understood, but best guess I can make is that they are factored into utilization for two years, so paying them down not only gives you points by reducing the amount owed on delinquent accounts metric but also by reducing utilization.

The collections should be your last priority if they will not PFD, as paying/settling them will not increase score, but it may make you look better to lenders.