First Time Buyer- Good Downpayment- Great Income- Credit score has flattened out

[Anonymous]

Hi- If anyone can help me out with this situation, I would appreciate it:

My Scenario:

First Time HomeBuyer

Income:  Approx $75k annually (sole income)

Employment History-  8 years with current employer

Rental history- 7 years in current address, no lates

Down Payment:  Up to 10% of purchase price

Score:  Equifax depending on day of the week 519 - 579

            Experian:  566 - 578

            Transunion: As of today: 588

I have been paying and have paid all collection debt that was appearing on 3 reports due to divorce.  Currently, I have 1 collection that has been paid, but reports have not updated yet (Transunion).  My reports are showing 3 tax liens, which have all been released and I have the tax releases from IRS for all 3.  My student loans total approx $10K and are in rehab state, have letter from creditor that payment is current and will be out of "default" in December 2009.  Literally, I have been cleaning my credit up for 2 years now paying collection/bad debt off, with my scores not improving.  I have 2 current retails credit cards with balance of 30% of credit limit.  One major credit card that is current with a balance  of 30% credit limit.  One car loan that is current and credit history for 16 years. 

I have my current reports as of 8/24/09 and am really wanting to qualify for the tax credit. 

Any ideas, suggestions, comments would be appreciated!!

[DallasLoanGuy]

paying own the revolving would likely do you more good.....

paying old medical debt can hurt as much as it helps.

[Anonymous]

Paid collections don't help your score.  In the future, get them to agree in writing to delete the collection before you hand over any money.  You can try asking them to remove the collections now but you have no leverage and they have no reason to go out of their way to help you.  Definitely get the balance down on your cards, 9% or below is ideal, with only one card reporting a balance.  I don't think that will give you the boost you need but it will help.  Lastly, make sure you check your scores here.  I'm assuming you got at least one of them somewhere else since we can't buy an Experian FICO score.  Scores from other sites can be way off.  Good luck!