topic Re: Help! Raise my husband's terrible Scores! in Mortgage Loans

Help! Raise my husband's terrible Scores!

SweetLanis — Tue, 31 May 2022 16:10:18 GMT

Hi ya'll, what would be the simplest way to raise my husband's stinkin' scores. His defaulted student loans has to be the culprit.

Here are his specs:

Mortgage 5-4-2

609 EQ

587 TU

593 EX

-Citibank

$14 bal with $200 CL

-Capital One (Authorized user)

$1300 bal with $6500 CL

•2 medical collections - PIF with deletion (not yet updated on CR)

•Chase cc - PIF for less than half bal

•Truist cc - PIF for less than half bal

•4 defaulted student loans (recently consolidated on 5/13/22 and not yet updated on CR)

He is an authorized user on other cards of mine, but balances are all at $0.

We're currently working with a lender that accepts 580 scores, but my God I don't won't to be hanging by a thread here!

Any and all feedback would be much appreciated!

Re: Help! Raise my husband's terrible Scores!

Jordan23ww — Tue, 31 May 2022 16:53:46 GMT

It looks like it might just be a matter of time and consistent on time payments. In August of 2019 I had a 583 Fico. I had defaulted on my student loan and had maxed out all 4 of the credit cards I owned($10,500 in combined limits at the time).

I paid down each credit card to $0 using the Snowball Method. Then by December 2019 as my scores began to rise into the high 600's and low 700's I began to apply for various credit cards which to me were keeper cards. I also in July of 2020 entered into a Student Loan Rehab program with my original lender. I had to make 9 consecutive on time payments and they would take my loan out of default and show my collection as paid. By August 2020, just 1 year later after I begun rebuilding my credit these were my scores:

In May 2020 I had $0 credit card debt and began practicing AZEO (all zero except one) only letting 1 card report a balance each month. My scores continued to improve each month. Once my loan was completely rehabbed in June 2021 and the change in my loans status hit my report my scores all jumped up by over 30 to 70 points. The student loan was really holding me back until it was rehabbed.

I hope some of these things I did will also work for your husband also!

Re: Help! Raise my husband's terrible Scores!

TXPocohontas — Wed, 01 Jun 2022 09:01:30 GMT

@SweetLanis Did his scores update today? Mortgage scores tend to update (at least on most sites I have a paid membership) only once a month. Though your credit lender could do a rapid rescore if needed. Sounds like his score should raise once the changes kick in.

What is the timeline for the needed increased scores?

Re: Help! Raise my husband's terrible Scores!

SweetLanis — Wed, 01 Jun 2022 13:09:25 GMT

@TXPocohontas

Our close date is 7/28/22 so I'm hoping his numbers give a little by then. The next update will be available on 6/17/22. I think you're right that after the deletions, it'll probably move but the part that absolutely worries me is the new tradeline from the student loan consolidation will bring it down. I feel like its almost impossible to know what will happen with these algorithms. Do you think paying down the Capital One to 10% utilization will help? It's currently at 20%.

I really appreciate your input!!

Re: Help! Raise my husband's terrible Scores!

TXPocohontas — Wed, 01 Jun 2022 13:25:14 GMT

@SweetLanis Absolutely paying down any balances helps raise that score. The key is to have zero balances report as much as possible.

For instance, I use my credit cards each month to pay my utilities, food, store purchases and any other bills that allow credit card payments. THEN I pay the entire credit card balance off 4 days BEFORE my credit card statement cycle ENDS. I STOP using the credit card until 5 days AFTER the DUE DATE. Then repeat the system. My credit cards report each month that I use them but ended with a zero balance. And my scores jump up each month. CAUTION: I only charge amounts I know I already have in my bank account meaning I could have used my debit card. So never over extend yourself unless a dire emergency.

I would have scores in the 800s but 2 unknown collections popped up (that are literally not mine) that I had to dispute.

Hope that helps you. 🙏

Re: Help! Raise my husband's terrible Scores!

SweetLanis — Wed, 01 Jun 2022 13:35:40 GMT

His Fico 8 scores on 5/16/22 were:

608 EX

602 TU

597 EQ

As of today they are:

621 EX

602 TU

597 EQ

The bump in the EX score was from a decrease in utilization with Captial One, which tells me if I do pay it down it will budge. Also, Credit Karma updated the removal of one of the medical collections under TU and EQ but MyFico hasn't reflected that yet. I hope that comes sooner than later.

Most lenders don't use Fico 8, but my thought and hope is that if the Fico 8 scores move then the mortgage scores will move positively too! @TXPocohontas

Re: Help! Raise my husband's terrible Scores!

SweetLanis — Thu, 02 Jun 2022 11:32:00 GMT

Thanks for the feedback ya'll! I really appreciate the time you took to respond! Gotta love these forums! @TXPocohontas @Jordan23ww

Re: Help! Raise my husband's terrible Scores!

disdreamin — Thu, 02 Jun 2022 12:46:21 GMT

@SweetLanis wrote:
Most lenders don't use Fico 8, but my thought and hope is that if the Fico 8 scores move then the mortgage scores will move positively too! @TXPocohontas

I'm not very knowledgable about FICO scores, but I can tell you from watching mine that how my FICO 8 scores move and what my mortgage scores do aren't always in synch. I believe there are factors that impact different scoring models differently. At this point, it sounds like you want to do what you can to optimize your husband's mortgage scores for next month, and I am sure members here can offer suggestions for making that happen.

Re: Help! Raise my husband's terrible Scores!

Jordan23ww — Fri, 03 Jun 2022 22:18:28 GMT

@SweetLanis wrote:
Thanks for the feedback ya'll! I really appreciate the time you took to respond! Gotta love these forums! @TXPocohontas @Jordan23ww

@SweetLanis you're welcome!