topic Re: Need to improve score 10 points to get a VA loan in General Credit Topics

Need to improve score 10 points to get a VA loan

Anonymous — Mon, 17 Feb 2014 15:41:18 GMT

Hello,

Been lurking on this forum for a few weeks. I started on my credit repair journey a few months ago to be able to get a VA loan to purchase a house. Last month the lender I am working with pull my credit and my fico for EX is 610, TU and EQ is 570. There is a rapid score with a potential score impromvent of 32 on EX, 34 on TU and 25 on EQ if I can maintain a very low UTIL. Below are my credit card info:

Capital One Secured Card Opened 2/2011 (CL $500)- current month UTIL is 10% from 80% last month

US Bank Secured Card opened 2/2013 (CL $300) - current UTIL is 20% but will make it 0 UTIL this month

Credit One opened 1/2014 (CL $300) - current UTIL is 33% due to Fees. Will be 10% this month

Capital One Quicksilver opened 1/2014 ($500) current UTIL is 11% but this card is not yet on my CR

Car Loan opened 3/13 - all monthly payments of $551 on time

Negative on my CR:

Judgement with a file date of 4/11 - Planning to negotiate and pay off before end of this month. Is there a way to request a judgment deletion after its paid?

Collections on a rental contract that we never lived in for $1985 and paid some and the balance is $00. Date opened is 10/08, will this fall after 7yrs?

CBA Collection DLA of 5/13 and 1/01 - $339

AWA Collections and DLA 5/11 - $263

Progressive MGMT SYS and DLA 8/11 - $271

National Recovery AG and DLA 3/11 - $158

I have a couple of Paid collection that I would like to see if they can be take out of the CR. Is sending a deletion letter to CRA work?

Thank you in advance.

Re: Need to improve score 10 points to get a VA loan

Anonymous — Mon, 17 Feb 2014 16:58:46 GMT

I would suggest making sure that only one of your CCs reports a small balance to the credit bureaus, with all the others at $0.

Beyond that, I'd visit the rebuilding forum for ideas on addressing the derogatories on your report.

Re: Need to improve score 10 points to get a VA loan

Anonymous — Mon, 17 Feb 2014 22:13:14 GMT

Thank you, I will do that. If I PIF all except one, is my FICO go up as fast with the negative derogatories in my CR?

Re: Need to improve score 10 points to get a VA loan

Anonymous — Mon, 17 Feb 2014 23:06:51 GMT

I would certainly attempt to optimize your utilization.

But I presume your derogatories are the dominant factor.

Re: Need to improve score 10 points to get a VA loan

Anonymous — Mon, 17 Feb 2014 23:52:16 GMT

So if I maintain my credit UTIL to less than 10%, will it increase my score by 10 points in a month or 2? Then I will take care of the derogatories afterward. I just want to get the VA loan as soon as I can. Thank you

Re: Need to improve score 10 points to get a VA loan

Anonymous — Mon, 17 Feb 2014 23:53:55 GMT

Took my CC balance from 48% to 2% and saw a 43 point jump over night. All I have on my report is one CC with a 7700 limit and a truck payment though. So your milage may vary.

Re: Need to improve score 10 points to get a VA loan

fot1 — Tue, 18 Feb 2014 03:22:28 GMT

You may even see more of a score drop once the Credit card shows up on you credit report

Re: Need to improve score 10 points to get a VA loan

Anonymous — Tue, 18 Feb 2014 04:23:10 GMT

Thats what I'm afraid of when the new capone card starts to get reported. I hope it won't be that much of a drop once the new card is added. I ran a credit simulation on CK and it dropped 3 points. But hoping it will help when I lower my UTIL from almost 90% on all the CC I have to 20% or less. I will find out at the end of the month as the lender will be running a rescore. I'm crossing my finger that it will be towards 600 pts. If not, I will keep on lowering my UTIL every month and pay off the derogatories on my credit.

Is it possible to get the collections deleted after paying them off? I encountered one collection that won't delete even after its paid off. My plan would be to pay of all my collections and send a letter of deletion to the CRA and hoping the collection companies won't respond as the debt is paid off.

Also, is there a way to get a judgment deleted once its paid? I am planning to do a deletion letter like with my collections once I paid it off.

Thank you for your advice and help.

Re: Need to improve score 10 points to get a VA loan

Anonymous — Tue, 18 Feb 2014 13:58:34 GMT

@Anonymous wrote:
Thats what I'm afraid of when the new capone card starts to get reported. I hope it won't be that much of a drop once the new card is added. I ran a credit simulation on CK and it dropped 3 points. But hoping it will help when I lower my UTIL from almost 90% on all the CC I have to 20% or less. I will find out at the end of the month as the lender will be running a rescore. I'm crossing my finger that it will be towards 600 pts. If not, I will keep on lowering my UTIL every month and pay off the derogatories on my credit.

Is it possible to get the collections deleted after paying them off? I encountered one collection that won't delete even after its paid off. My plan would be to pay of all my collections and send a letter of deletion to the CRA and hoping the collection companies won't respond as the debt is paid off.

Also, is there a way to get a judgment deleted once its paid? I am planning to do a deletion letter like with my collections once I paid it off.

Thank you for your advice and help.

Try posting these questions in the rebuilding your credit subforum, or get this topic moved there. You'll likely find faster responses there. For what it's worth, if your one credit card is showing 80-90% UTL or more, you're taking a large hit. Each account that is maxxed dings your score as does having your over all UTL hitting the higher end. Like has been stated before, it's best to not carry even a small balance on several cards. Have you spoken with your lender about those new accounts? I thought many of them don't care to see new inquiries or new accounts opened with in 6 months to 1 year of a home loan?

I don't know anything about judgments, but you can ask about that in the subforum I mentioned. Look up "vacating a judgment" it seems that there ARE ways to get them taken off your report once paid. For the company that refuses to delete post that company's name, and we'll see if any one had successes with them at all. Also, look up "Pay for Delete" and "Good Will Letters" I hope those things can help you.

Re: Need to improve score 10 points to get a VA loan

fot1 — Thu, 20 Feb 2014 02:15:20 GMT

@Anonymous wrote:
Thats what I'm afraid of when the new capone card starts to get reported. I hope it won't be that much of a drop once the new card is added. I ran a credit simulation on CK and it dropped 3 points. But hoping it will help when I lower my UTIL from almost 90% on all the CC I have to 20% or less. I will find out at the end of the month as the lender will be running a rescore. I'm crossing my finger that it will be towards 600 pts. If not, I will keep on lowering my UTIL every month and pay off the derogatories on my credit.

Is it possible to get the collections deleted after paying them off? I encountered one collection that won't delete even after its paid off. My plan would be to pay of all my collections and send a letter of deletion to the CRA and hoping the collection companies won't respond as the debt is paid off.

Also, is there a way to get a judgment deleted once its paid? I am planning to do a deletion letter like with my collections once I paid it off.

Thank you for your advice and help.

Sadly CK score and thus simultions are fako's so don't pay any attention to them..

Re: Need to improve score 10 points to get a VA loan

Anonymous — Thu, 20 Feb 2014 04:26:03 GMT

Thanks for all youre replies. I had my lender do a rescore today and all my fico went up. I had a mid score of 570 and that midscore now is up to 594 which means that the lender can now issue a VA pre approval so we can start looking for houses. I am planning to pay off most of the CC to 0 balance except for one with less than 10% UTIL. Now the plan is to contact the creditor for my judgment before the weeken and hoping I can negotiate the debt to pay it off then try to do some research on how to get a judgement deleted on my CR. After that, I will be paying off the rest of the collections by end of march.

Agai, thank you for all your help. They are greatly appreciated.

Re: Need to improve score 10 points to get a VA loan

takeshi74 — Thu, 20 Feb 2014 13:09:16 GMT

@Anonymous wrote:
So if I maintain my credit UTIL to less than 10%, will it increase my score by 10 points in a month or 2?

We can't tell you that you'll get X points for doing Y. We don't know the details of the algorithm used.

@Anonymous wrote:
Is it possible to get the collections deleted after paying them off? I encountered one collection that won't delete even after its paid off. My plan would be to pay of all my collections and send a letter of deletion to the CRA and hoping the collection companies won't respond as the debt is paid off.

Definitely look in the rebuilding subforum. You generally have more leverage with a pay for delete versus a goodwill letter (the latter seems to be what you're describing).

Re: Need to improve score 10 points to get a VA loan

Anonymous — Sat, 22 Feb 2014 03:13:07 GMT

Thank y'all for all the helpful replies. Now that I got the 10 pts bump and the ability to get a pre approval letter with a condition to settle the judgement. I am now tasked to clean up my CR. I have taken care and made an agreement with the CA to settle the judgment and to include a motion to vacate judgment once the debt is all settled.

My next move is to contact the other CA on my credit report (not sure if this is a good idea) and work out a PFD and hope it can be done. Any suggestions or ideas on how to tackle this? Also, where can I find some sample GW letters? Thank you

Re: Need to improve score 10 points to get a VA loan

09Lexie — Sat, 22 Feb 2014 05:44:51 GMT

@Anonymous wrote:
Thank y'all for all the helpful replies. Now that I got the 10 pts bump and the ability to get a pre approval letter with a condition to settle the judgement. I am now tasked to clean up my CR. I have taken care and made an agreement with the CA to settle the judgment and to include a motion to vacate judgment once the debt is all settled.

My next move is to contact the other CA on my credit report (not sure if this is a good idea) and work out a PFD and hope it can be done. Any suggestions or ideas on how to tackle this? Also, where can I find some sample GW letters? Thank you

Post your question in our Rebuilding Forum. I'm sure they can help you.

Goodluck!