So I recently settled a large account to improve my Revolving utilization ratio, which was terrible... I'm still in the process of disputing this settlement as the creditors have done nothing but fight this... despite getting a contract from them, and doing a full settlement, they would not report it as 0 balance, and Ive been fighting them through the CRAs, I expect it will in fact be reporting as 0 balance in the next couple months. Anyway it's left a bit of a bad taste in my mouth about settling, since they really gave me the run around in reporting it properly, but it is what it is... My utilization ratio has dropped to about 60-70% from 90%, and my scores have improved, although my mortgage scores on 2 bureaus are still lagging... so I have a question.
I have a collection account, for 2400, this is my most recent negative account, it's only about 18 months old. It is reporting on 2 bureau's, but not a third, that third Bureau has a Mortgage score for me of 633, the other 2 where it's reporting are 570'ish, very frustrating. So I'm somewhat inclined to try to settle this account as I believe it's what's draging those 2 scores down...
That said, I also have a $9,400 charge-ff CC, this is less-new. it's approaching 4 years old and the SOL in the state where the contract was signed ( but I have moved to a state now that has 6 year SOL, not sure if the creditor is aware of this, and this creates complications with Tolling SOL's etc... )
So I'm considering settling one of these accounts, but I'm not sur which would yield the best result, the $9,000 account would do better things for my Utilization ratio, but the 2400 account is newer, and seems to be correlating with my depressed mortgage scores on 2 bureaus.
Should be noted, the Bureau which shows a 50 point higher mortgage score Also has a lower utilization ratio, 60% , vs. 70 & 72% on the other 2 bureas. So I'm not sure if the difference is largely from the difference in amount of debt here, or the age of the debt, both I'm sure, but which factor is more influential here is what I'm wondering.
Since I moved states before the SOL passed on most of these accounts, & I would like to purchase a home in less than the 6 year SOL for my new state, I'm aware this opens me to being sued, I'm not sure how diligent these crditors are, whether theyre even aware I live in a new state, and if they would in fact pursue me across state lines. But it's in my mnd that I may need to settle most or all of these accounts eventually before applying for a mortgage or I may lose my negotiating leerage ( theyll see I want to buy a home ) or I may be sued before the 6 year SOL runs in my new state.
But I still have about 9 months until I'll be looking to apply for a mortgage and I would like to take this 1 acount at a time and see how my score rises, I don't want to pay anything unnecesarily. In a few months some of these debts will pass the original 4 year SOL from my previous state, at which point I think they'll be more pliable on settlement terms, I've been using mail-forwarding from my other state and still keep a phone number from that state, too, so I'm not sure they know I've moved & that the SOL has been tolled, this may give me a better negotiating position if they think the debt has passed SOL and is dead.
Any advice on the best course of action here regarding which of those 2 accounts might be more beneficial to settle, or insights on the SOL issue I gace would be much appreciated, thank you.
Also, I'm wondering, I have a couple secured credit cards with low limits, 300, 500 etc. I'm wondering if dumping $5,000 into one of these to raise the limit & increase my credit limit & utilized ratio is a viable strategy to improve score...? anyone done something like this?
I also just got a $3000 limit increase on one of my non-secured credit cards, so I'll be excited to see what effect that has on my score, should bring my utilization ratio close to 50-58% across all 3 bureaus.
Scores currently are 640'ish/625/630 , Mortgage scores 633, 577, 573 . I'm hoping to reach 640 or 660 for better mortgage rates in the next 9 months, but anything above 620 should qualify me for the home purchase without FHA.
