Mortgage scores not budging

[JVille]

As a Chap 7 filer who has collections this is the kiss of death. If you can pay for delete great but get rid of them! AZERO is the absolute way to increase scores, if one won’t report without a balance then keep at balance less than 8%.
As to the collections, they ARE holding your scores down and will continue until paid and behind you. The Chap 7 is very recent, collections after BK = continued low scores.
AZERO & collections paid your scores will over time go up. But yes the collections need to go, they are an issue and will continue to be.

[CreditInspired]

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@SSH0126 wrote:
Follow Up questions

Many say do not pay for collections.

1. Are you saying to pay them because of the utilization?
2. If I’m unsuccessful with PFD then how will doing so be helpful to me in terms of the mortgage scores?
3. One of my credit cards will not report if I do not have a balance will the other three reporting offset this in a positive way?
4. If the company do not agree to PFD should I pay them for the sake of my end goal which is to get approved for a mortgage?

At this point I will do anything to get it done. I just don’t want to do anything that will put this goal off.

What is SD?

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You are right about some lenders not requiring collections under $2K to be paid off; but if it were me, I would because--and this is JMO--it looks like a pattern of running up debt and saying, "oh well, I'm not paying it." 

The problem with the collections--if they are continuously being updated on the report. And in this situation, and again this is me, I wouldn't care about a PFD. I would just pay it to stop the updating.

SD is sock drawer -- throw the cards in your SD and forget they exist. Don't use them unless you can PIF (pay in full).

I believe if you get your credit profile in the best position it can be, not only will you get approved but you would get a great interest rate and APR too.

If a CC is not reporting, that's okay because hopefully you will have implemented the AZEO method.

GL2U

[SSH0126]

What about the student loans?

[Anonymous]

Also, your 100k student loan will be calculated at 1k per month for your debt to income ratio if you go FHA. Based on your file/scores, it seems likely you'll be going FHA so that's something to think about. If your income can't sustain an added 1% DTI, there are ways to work with that, but it can be a real dealbreaker with large SL debt. I have 225k in student loans, and it's pushed down what I can qualify for significantly. Frankly, the monthly payment at the lower purchase price is about the max of what feels comfortable to me (and I am also not repaying my SL yet), so it might be a good thing, but it makes it very hard to buy in my area due to COL.

[SSH0126]

My husband is a vet so we were looking to do VA. I’m not in repayment so they would take the 0.00 monthly amount right?