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What to do...

Established Member

What to do...

Hi everyone,

 

I am 22 months post ch 7 bk.  I have done the following I have 2 platinum CO cards, 1 with a 1100 limit and one with a 2500 imit, I also have a cred 1 card with a 700 limit.  I had a mishap at work and was out for over a month and ran my cards up to the limits.  I am currently working to pay down the balances and should be under 30% by 12/2.  I am interested in purchasing a home early next year and would like to know what else I can do to bring my scores within range to qualify for a mortgage.  I also have a auto loan at 7%, none of these accounts have been late, but my scores are still in the low 600s.

 

Help!! 


Starting Score: 633
Current Score: 606
Goal Score: 700


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Message 1 of 9
8 REPLIES
Community Leader
Super Contributor

Re: What to do...

Pay all but one card off and make sure you aren't late. On the one card that isn't paid off make sure it reports a balance between 1-9%

Filed BK7: 7/2012 (start score EQ 560 / TU 529) Discharge 10/2012
740 EQ FICO 06/2018
750 TU FICO 06/2018
741 EX FICO 06/2018
$24k NFCU Platinum | $25k NFCU cashRewards Sig | $15k NavChek | $7.1k Cap1 Quicksilver | $10k Amazon Store | $19k Cap1 VentureOne | $16k Barclay Aviator | $5k Chase Freedom | $5k Chase Sapphire Preferred | $9k Costco Visa | $20k AMEX BCE
Message 2 of 9
Moderator

Re: What to do...

Scupra is right, the utilization is part of what is hurting your score. It makes up about 30% of the scores formula.

 

Pull your mortgage scores from here before you apply so you know where you stand. The lender will use the lowest mid score of all applicants on your mortgage (in other words if you and your spouse apply, then the lowest mid score between the two of you). You can get your FICO mortgage scores in the 3 B reports here.  Mortgage lenders do not use FICO 8 scores. Your mortgage scores could be higher or lower.

Message 3 of 9
Established Member

Re: What to do...

My mortgage scores are: EQ: 600, EX: 605 amd TU: 628.  

My plan is to pay off the cards by Dec and then begin to pay on my student loan debt.  Should I apply for any more cards once I have gardened for a few months or do I have enough credit?  I have 2 Cap 1 platinum cards, 1 credit one bank card, auto loan, and student loans.  I see most folks on here with like 10, 15 cards and keep thinking maybe I need more.  


Starting Score: 633
Current Score: 606
Goal Score: 700


Take the myFICO Fitness Challenge
Message 4 of 9
Frequent Contributor

Re: What to do...

From what I was told, you also have to have 30% down payment to qualify for a mortgage that soon after a bankruptcy too.  I don't know if I was misinformed or not, but apparently they have gotten a lot more stringent on loans in the past few years.



Message 5 of 9
Valued Member

Re: What to do...

You do not need 30% down, who told you that?

You need 2 years post chapter 7 with a minimum 620 credit score to quality for an fha loan with a modest down payment.
Message 6 of 9
Community Leader
Super Contributor

Re: What to do...


prosario69 wrote:

My mortgage scores are: EQ: 600, EX: 605 amd TU: 628.  

My plan is to pay off the cards by Dec and then begin to pay on my student loan debt.  Should I apply for any more cards once I have gardened for a few months or do I have enough credit?  I have 2 Cap 1 platinum cards, 1 credit one bank card, auto loan, and student loans.  I see most folks on here with like 10, 15 cards and keep thinking maybe I need more.  


You have enough credit for now. New TL's are going to bring your AAoA down and could also pull your score down. Work on paying off all but one card, leaving one to report a balance between 1-9%. This will optimize your FICO score and let you know where you stand. Most FHA lenders will require a score of 620 to be approved.

 

A lot of us have more cards like you stated, but a lot of us aren't planning on a mortgage app either Smiley Happy Good luck!

Filed BK7: 7/2012 (start score EQ 560 / TU 529) Discharge 10/2012
740 EQ FICO 06/2018
750 TU FICO 06/2018
741 EX FICO 06/2018
$24k NFCU Platinum | $25k NFCU cashRewards Sig | $15k NavChek | $7.1k Cap1 Quicksilver | $10k Amazon Store | $19k Cap1 VentureOne | $16k Barclay Aviator | $5k Chase Freedom | $5k Chase Sapphire Preferred | $9k Costco Visa | $20k AMEX BCE
Message 7 of 9
Moderator

Re: What to do...


HannaHoo wrote:
You do not need 30% down, who told you that?

You need 2 years post chapter 7 with a minimum 620 credit score to quality for an fha loan with a modest down payment.

^^^Agree with HannaHoo. In fact, I was thinking the exact same thing: who in the world told you that???

 

If you decide you want to go conventional financing rather than FHA, then you will need 4 years post discharge, but FHA will definitely go 2 years. The mid-score is lender specific, some want 620 others are looking for 640 or even 660. So make sure you ask the loan officer what the criteria is before you apply.

 

 

Message 8 of 9
Regular Contributor

Re: What to do...

As a previously licensed mortgage banker I cant stress this more than anything.... You can not have any derogs after BK.... It will make your mortgage application go sideways real quick.... Ive had many applications turned down for a 30 day late on a cc or car payment after a bk. Underwriters do not like it.

Filed BK Chp 7 4/2015 - Discharged 8/2015 || Scores at Discharge- EX- 522, TU- 478, EQ- 488
Current scores - EX- 635, TU- 641, EQ- 637 (04/16) || Total CL - $30,600 || Util - 12%
NFCU GORewards - $10,000 | NFCU cashRewards - $10,000 | Cap1 QS1 - $1,300 | Cap1 Platinum - $1,300 | Sony Card - $800 | Comenity Cards (5) - $2200 | Firestone - $1,200 | Merrick Bank - $500 | Credit One - $550 | First Premier - $700 | Fingerhut - $250 | Amazon Store Card - $900 | Wal-Mart - $900
Message 9 of 9