topic Raising my credit score for USDA loan!!! in Rebuilding Your Credit

Raising my credit score for USDA loan!!!

Anonymous — Thu, 27 Aug 2015 20:03:27 GMT

Hello!

I am looking to raise my credit score up to a 700 ( ideally ) as fast as I can. I am trying to get qualified to purchase a home through a USDA 502 direct loan before the frost hits this winter.

Now heres the background--

I left for school nov 2013 for 1 year. during that time I couldnt find any type of work to fit around school. So my three credit cards were maxed out. My mother had put me on her credit card to use in case of an emergency. Between the two of us we had but a hefty balance on it. Fast forward to Feb 2015. I had been working for a year paying everything off, had my score up to 640 ( yay! ) and then got let go from my job Mar 2015. Unable to find work quickley and an 8 week wait for unemployment, the balances started creeping very close to the limit again, on top of my 2500 student loan and utilities. I was able to land a wonderful job in Jun 2015 and have been kiling myself to pay off everything. Now all i have left is 600 on one card and 2100 in student loans and my mther card has been taken off my report after i was removed as a AU.

During the coarse of my unemployment i had late payments on all three of my accounts. First check i got i paid each one at least up to current.

My question is - How can i get my score up to at least a 640 from a 577 when i really dont have much debt left to pay off? I had already tried the goodwill letters for my late payments and was denied on all three.

Re: Raising my credit score for USDA loan!!!

Anonymous — Thu, 27 Aug 2015 19:22:49 GMT

@Anonymous wrote:
Hello!

I am looking to raise my credit score up to a 700 ( ideally ) as fast as I can. I am trying to get qualified to purchase a home throgh a USDA 502 direct loan before the frost hits this winter.

Now hes the background--
I left for school nov 2013 for 1 year. during that time I couldnt find any type of work to fit around school. So my three credit cards were maxed outt. My mother had put me on her credit card to use in case of an emergency. Between the two of us we had but a hefty balance on it. Fast forward to Feb 2015. I had been working for a year paying everything off, had my score up to 640 ( yay! ) and then got let go from my job Mar 2015. Unable to find work quickley and an 8 week wait for unemployment, the balances started creeping very close to the limit again, on top of my 2500 student loan and utilities. I was able to land a wonderful job in Jun 2015 and have been kiling myself to pay off everything. Now all i have left is 600 on one card and 2100 in student loans and my mther card has been taken off my report after i was removed as a AU.

During the coarse of my unemployment i had late payments on all three of my accounts. First check i got i paid each one at least up to current.

My question is - How can i get my score up to at least a 640 from a 577 when i really dont have much debt left to pay off? I had already tried the goodwill letters for my late payments and was denied on all three.

What current open, active, credit card accounts do you have and what are the balances/limits? What derogs are on your reports?

Re: Raising my credit score for USDA loan!!!

TRC_WA — Thu, 27 Aug 2015 19:27:02 GMT

@Anonymous wrote:

What current open, active, credit card accounts do you have and what are the balances/limits? What derogs are on your reports?

That's the key question.

@Anonymous wrote:

During the coarse of my unemployment i had late payments on all three of my accounts. First check i got i paid each one at least up to current.

My question is - How can i get my score up to at least a 640 from a 577 when i really dont have much debt left to pay off? I had already tried the goodwill letters for my late payments and was denied on all three.

I don' t know if 577 to 640 will be possible with recent lates... How serious were they? 30/60/90 days?

Re: Raising my credit score for USDA loan!!!

Anonymous — Thu, 27 Aug 2015 20:01:09 GMT

I have a Discover 1500 limit 600 to pay off

Cap one - 300 - no balance

Us bank - 300 no balance

Paypal credit - 500 no balance

Student loan 2100 balance left - in deferment

I have 3 60 day lates on my report from june 2015 when i was unemployed. Two 30s from 2010.

Re: Raising my credit score for USDA loan!!!

TRC_WA — Thu, 27 Aug 2015 20:18:40 GMT

@Anonymous wrote:
I have a Discover 1500 limit 600 to pay off
Cap one - 300 - no balance
Us bank - 300 no balance
Paypal credit - 500 no balance
Student loan 2100 balance left - in deferment

I have 3 60 day lates on my report from june 2015 when i was unemployed. Two 30s from 2010.

Unfortunately those are going to hurt a while. I don't see a 640 or a 700 anytime soon unless you get a PFD.

Re: Raising my credit score for USDA loan!!!

Anonymous — Thu, 27 Aug 2015 20:19:58 GMT

What is a PFD?

Re: Raising my credit score for USDA loan!!!

Anonymous — Thu, 27 Aug 2015 20:34:30 GMT

What do you think the time frame would be to recover my credit?

Re: Raising my credit score for USDA loan!!!

Anonymous — Thu, 27 Aug 2015 21:42:38 GMT

@Anonymous wrote:
What do you think the time frame would be to recover my credit?

In general, you'll see slow steady improvement (a few points every few months at best) as you move away from those lates, and you'll see faster improvement once they hit 2 years of age. Your only other way of seeing quick improvements is to obtain GW deletions of those lates.

Re: Raising my credit score for USDA loan!!!

Anonymous — Thu, 27 Aug 2015 22:35:26 GMT

Just got off the phone with the bank and I only have one 60 day instead of 2. I just submitted a request to have it possibly removed or dropped down to 30. My loan officer says that as long as my debt is below 30% and i have no 60 day lates in the past 12 months then I shouldnt have a problem being accepted. So now i wait to see if this single 60 can be fixed!!!

Re: Raising my credit score for USDA loan!!!

Anonymous — Fri, 28 Aug 2015 04:44:20 GMT

One of the key arguments in a goodwill letter is showing that "that was then and this is now" June of this year=still now. It's almost September and I have a few credit cards that only reported June statements

Re: Raising my credit score for USDA loan!!!

Anonymous — Fri, 28 Aug 2015 04:45:41 GMT

We're looking at now sir we're looking at now