Hi everyone, getting discourage a little. Credit is bad but we have decent income. I feel like we bounced back from my husband's lay off (we didn't get evicted, lose cars or anything like that) just fell behind on the credit cards that I got with the intention to build credit. I'm sitting at 553, 567, and 550. I paid off $440 out of $2,464 in credit card debt and plan to drop another $1,500 this month at tax time. With a VA loan I was hopeful but if we have recent lates not sure it will be possible. Income is at $115K. We need to move by June for more room and I was hoping to get a house. On a good note, my credit did go up 19 points on account after a collection fell out. We have 3 collections, $754, 441, and $1,208. Maybe it can still happen. Thanks for everyone's support.
Collections and other derogatory actions (30 day late payments) within 12-24 months will always hurt ones credit score and hopefully if you can get these collections paid and satisfied and keep utilization ratios of credit cards in your favor quickly---hopefully you'll have enough time for that derogatory history to distance itself far enough away to help you get your VA loan.
Just be sure that once you pay these collections you follow up quickly to ensure they are reporting these accounts as paid and satisfied. Also be sure to utilize credit in a modest fashion--lots of folks will think paying everything off to $0 is the best way to go when it is not.
PFD those collections if possible immediately, you will have to pay them off before getting a mortgage anyhow. If they won' t PFD, then just pay them off and then look for a reason to dispute them. Your CC bals are not bad, get them current, and call and ask for some goodwill. People want you to succeed, and will help you out if you give them a chance.
As long as they'll report them as "paid as agreed, $0 balance" for you, you'll be fine if you settle.