Credit Report- Collection

[Anonymous]

I am just out of college. So I do not have a long credit history. However, I do have student loans, auto loan and personal loan. Also, a maurices card and I am an authorized signer on another credit card. Currently my lowest credit score is 620. The reason for this is when I was 19 I had to go to the hospital and so the medical bill was technically in my name, however I have never seen the bill simply because my parents were paying the medical bill, as do most parents for any 19 year old college student. Now that I am 20 (still young I know) My fiance and I are looking to buy a house, his credit is 744 so his isn't a problem but mine is a hindrance on this purchase. I saved up and paid the entire balance off the collection, and they did in fact send me a signed fax saying that they requested for removal from my credit report. That was around OCT 15. They said they report every month so that it should not be on my credit report come November, at the latest December. I'm wondering if this will improve my credit report tremendously seeing as it is the only derogatory thing on my credit report, if it gets removed at all that is. If it doesn't get removed what would be my next steps after this? Seeing as it would be stuck with me until I'm at least 26, and I don't think that I can wait that long to get a house. We are preapproved for a loan, but because of my credit we have to put 20% down, which we just plain can't afford. We can however afford 3.5- 5% down If anyone could provide insight that would be so much help! I'll greatly appreciate any information one could offer! Thanks!

[RobertEG]

Yes, deletion of a major derog, particularly if it is your only derog, will make your payment history "clean," and put you into a better scoring category, in addition to the removal of the derog itself from scoring.  I would expect moving above the mid-600's, but other factors will most likely keep you well below 700 for the immediate future.

You major remaining scoring impacts at this point are most likely your length of credit history (approx 15% impact), of which you can do little other than age, and your lack of revolving credit, which is a major part of a 30% scoring category.  FICO places heavy impact on the showing of effective use of discretionary, revolving credit (e.g., credit cards).

However, that takes time to app, get approved, and report, so little opportunity in your current mortgage process.

[Anonymous]

Well, i was informed that as long as my score is 640 that I would be approved for the mortgage, I talked specifically to a mortgage specialist that I am working with and she said the only reason why I couldn't get into the program I wanted was because my lowest score had to be 640, if it will boost my credit above the mid- 600's then my only worries at this point is how bad of an interest rate I will get with that and also if when they pull my score again if that pull will drop it back down below 640.. -_- this credit score stuff is all tricky and what not.....

[AndySoCal]

Ask the collection when they report. to the bureaus? If it is goingto be while see if thye can expedite the request.