My husband and I are trying to get a home loan. We've worked over the last year to clean up his credit and finally started getting a score.
We payed down child support arrears in full.
Paid 1 judgment (shows satisfied)
Paying on another judgment (but does not show paying on)
We removed a few off his credit report completely.
He has two from one collection agency that we just payed off. They are removing these for us within next 21 days.
Has another collection that shows satisfied (its also reporting as judgment satisfied, double whammy)
And his credit cards were maxed out (he only has a $1600 credit line between 3 cards he uses for business)
So, my question is, loan officer ran all 3 reports, TU is the median at 636. This TU was at 700 a few months ago and we removed alot of bad stuff or its been shown as paid or zero balance. What has changed was the maxed out cards.
By paying these cards, will that score jump back up? Was removing some of the bad, also hurting his score?
We want the best interest rate. We are paying off the last judgment in full because they'll want PMI with a judgment on his record. So, instead of doing the pay plan, we will just pay it in full and hopefully save us some money in the end.
I've been monitoring his score for about 6 months and I just don't see what the sudden decline was for, when we have worked so hard to clear it up and pay these collections off. We've spent thousands!
Is it the balances on the CC's? I need some guidance.
