Need Advice

[Anonymous]

I am trying to buy a house, my credit scores are the following:

• Equifax Beacon® 5.0 (609)

• Experian®/Fair Isaac Risk Model V2SM (641)

• TransUnion FICO® Risk Score, Classic 04  (633)

Now just last Friday I paid off (9) accounts I had in collections and Rash Curtis and Assoc. Sent me the PFD letter after my payment cleared. They also told me they would report to all (3) credit Bureus on April 25 to be deleted. So will my credit go up tremendously? I will no longer have any accounts in collections and my credit cards were all paid down and are all under the 25% threshold. The guy at Rash Curtis told me he believes my credit will go up by as much as 60 points? Also, my wife's scores are similar to mine, she has only been working full time for a year now, she was going to school previously, will that affect us? The fact that she has only worked for a year? I have worked full time with no pause for the last 25 years. Any advice on how much our scores will go up is appreciated, just very nervous. We are not looking into buying for another 3 months but wanted the morgate broker to start helping us figure out what to do to bring up our scores. 

[tcbofade]

The collections being removed from your credit reports should certainly help.

Getting credit cards under 25% will help, assuming that they were over 29% prior.

You don't mention your wifes scores, or the application details.  Are you both applying for the mortgage?  Just you?  Just her?  I believe that if you both apply, they'll use the lower of the two middle mortgage scores.

50 points?  Very possible.  You'll have to wait until the CRAs update tho.

[Anonymous]

Do you have any other negatives like late payments, or will your reports be completely clean when the PFDs go through? If there's nothing else then you will see a significant boost to your scores. Do you have the ability to pay down/off more balances? Mortgage scores live zero balance accounts. If you are carrying balances on more than one card, can you pay off some of them? Every account you get to zero will boost your mortgage scores more. Ideally you'd have a single bank card with a small balance (less than 9% of its limit, but ideally $15-20) with the rest at zero.

[SouthJamaica]

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@Anonymous wrote:

I am trying to buy a house, my credit scores are the following:

• Equifax Beacon® 5.0 (609)

• Experian®/Fair Isaac Risk Model V2SM (641)

• TransUnion FICO® Risk Score, Classic 04  (633)

Now just last Friday I paid off (9) accounts I had in collections and Rash Curtis and Assoc. Sent me the PFD letter after my payment cleared. They also told me they would report to all (3) credit Bureus on April 25 to be deleted. So will my credit go up tremendously? I will no longer have any accounts in collections and my credit cards were all paid down and are all under the 25% threshold. The guy at Rash Curtis told me he believes my credit will go up by as much as 60 points? Also, my wife's scores are similar to mine, she has only been working full time for a year now, she was going to school previously, will that affect us? The fact that she has only worked for a year? I have worked full time with no pause for the last 25 years. Any advice on how much our scores will go up is appreciated, just very nervous. We are not looking into buying for another 3 months but wanted the morgate broker to start helping us figure out what to do to bring up our scores. 

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No one can say how many points.  But if you are getting rid of your collections, that would be very substantial.

While it's great to have everything under 25%, it's important to the mortgage scores to show zero balances. So while you may not need that much improvement, you can gain even more points by zeroing out some of your revolving accounts.

[Anonymous]

I have Rash Curtis collection account, and I heard they don't accept pay for deleting,

can you explain how can I deal with them ?

Thank You

[805orbust]

I would also try the FICO score Estimator here on Myfico. It's not exact but I found early in my rebuild many years ago that it gave a pretty reliable range within 25 points up or down.