Help! Need 13 pts for mortgage

[Tbhamm]

My husband and I applied for a mortgage this week. My mid score is 627 and I need it to be 640. Here is what's on my report:

Credit card: limit $1750 bal $563
Car loan bal $14k pymt $591 last late 1/14
Car loan bal $10k pymt $275 never late
Student loans balance $20k no lates

Collection att $43 from 2012
Collection wellness center $160 2009
Collection wellness center $280

The collections to the wellness center is just one but is listed twice once with the actual center and then with the collection agency it was sent to so I know it isn't two separate ones.
My loan officer suggested pfd with the wellness center and if that doesn't work to dispute it in order to raise my score.
My question is, is this the best way to increase my score 13 pts

[ah32]

PFD the ATT for sure. I recently did the same thing and my score increased by 11 points. If they refuse, you might as well pay it because it's a small amount. You might try a goodwill letter to get the late removed on your car, especially because it's the most recent negative on your file. While you're at it, you might as well try to PFD both wellness center collections. Good luck!

[StartingOver10]

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@Tbhamm wrote:
My husband and I applied for a mortgage this week. My mid score is 627 and I need it to be 640. Here is what's on my report:

Credit card: limit $1750 bal $563
Car loan bal $14k pymt $591 last late 1/14
Car loan bal $10k pymt $275 never late
Student loans balance $20k no lates

Collection att $43 from 2012
Collection wellness center $160 2009
Collection wellness center $280

The collections to the wellness center is just one but is listed twice once with the actual center and then with the collection agency it was sent to so I know it isn't two separate ones.
My loan officer suggested pfd with the wellness center and if that doesn't work to dispute it in order to raise my score.
My question is, is this the best way to increase my score 13 pts

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I understand the PFDs because that would solve your problem with the points you need. But I don't understand disputing.

Read here on this forum, many lenders require the dispute remarks to be completely removed in order to issue the loan. Here is a good thread to read so you know:  sorry, wrong thread posted. Will look for right one on removing disputes EDIT:  Here is the thread  http://ficoforums.myfico.com/t5/Mortgage-Loans/Best-Way-to-Remove-quot-Account-In-Dispute-quot-for-M...

Do you only have one revolving tradeline (credit card)?  If so, your utility is over 32%.  You should be able to increase your score by reducing utility to less than 9% of the credit liine or even less. Don't make it zero, but you really should have it paid way down to optimize your score.

[frugalQ]

Yeah, id pay down the credit card so that only about $150 reports.

Is it legal to have two collections for the same account? Doesn't one agency have to sell it to another one?

[Tbhamm]

Thanks everyone for replying! I didn't think disputing was the best way. I plan to pay down the credit card to 9% utilization and try pfd the collections.

[TheGardner]

Have just 1 card reporting preferably less than 10% will likely give you the boost you need.


Collections are small but don't touch them unless they agree to delete! If they update the reporting date you will experience a score drop.

This is where it gets tough and you need to decide if you want to play Russian Roulette. If you just want to get the mortgage and worry about the rest later that is not a bad plan. But here's your other options...


Speak with wellness center, show them the double reporting and demand that they remove one. But you still have to worry about them updating the other! Try PFD If they play hardball you can threaten reporting them to CFPB or civil suit for falsely reporting. Damages include higher interest rate on your mortgage and attorneys fees, could get costly. Explain that you prefer the easy, kinder resolution as no damage has been incurred yet.

Perhaps get the contact information from the above poster for AT&T on PFD for that.

Warning ** We want letters from them on PFD but these are actually not enforceable.. So if someone doesn't uphold their side of the deal you could lose points during account updating! That said may have had a lot of success with and without letters. Very few do get screwed over.

Bottom line is you have to decide if it is worth it at this time.

Good luck, keep us posted!

[Lemmus]

...be very careful with PFDs ...use the template letters in the Rebuilding Credit forum's stickies ...they include very specific language that prevents the ca from using your request as an acknowledgement of the debt ...agree to absolutely no payment plan w/o realizing that any payment will likely result in the dofd updating ...and don't try to PFD for a significant amount if you are still within the SoL for the debt in your state ...they could take you to court ...those aside, PFDs do work with a lot more CAs than will ever publicly admit it 

[Tbhamm]

Thanks guys. I really think I'm just gonna pay down the credit card to 9% util. And leave the collections alone and pay them after we get the mortgage.

[TheGardner]

Great plan.