@Anonymous wrote:Hi! My husband and I are currently applying for a mortgage! Our scores are terrible after experiencing terrible set backs! We finally have the funds to clean our credit! We have to clean in 4 months in order to get approval for a community coming!!
My current credit has 14 baddies and I got PFD for 7 so far! 2COs n 2 120Fed loan lates in 2017.current Fico 524
565, 616, 685
but have 4 accounts in dispute
2 good standing cc but high ultization
what can I do to increase my score fast?!
once i remove disputes my score will drop!
@Anonymous Not knowing your exact details, below are benchmarks for FICO 8. Scores lenders use for mortgage are EX2, TU4, EQ5; should react similarly.
Remember these aggregate utilization thresholds: 9%, 29%, 49%, 69%, 89%
Remember these individual utilization thresholds: 29%, 49%, 69%, 89%
If you're not crossing a threshold, you won't be getting points.
Look into AZEO Technique. All Zero Except One card reporting a small balance e.g. $10. Use a bank card. Do not use a store or charge card.
Get your CC aggregate utility at or below 9% for full FICO points optimization. Under 4.5% utilization for some profiles.
Scores will react positively with one revolving credit card reporting a balance.
You might want to address any derogatory you have; delinquency, charge off, collection, etc. If they are updating monthly, it'll keep your scores suppressed.
@Anonymous wrote:What does aggregate mean? Also Im having some of the collections removed. I'm afraid that once I remove the dispute off my student loan that was 4 months late in 2017 it will dramatically drop my score. Could this happen?
See message 3. The truth about credit card utilization.
You may want to venture over to the student loan sub forum. There are experienced members that may be able to assist with those Fed Loans and possibly rehabbing.
@Pony4her wrote:Can you explain this please? Thank you.
Remember these aggregate utilization thresholds: 9%, 29%, 49%, 69%, 89%
Remember these individual utilization thresholds: 29%, 49%, 69%, 89%
See message 3. The truth about credit card utilization.
@Pony4her Those are scoring thresholds. If you cross the percentage marker, then you may lose or gain points, depending on if you are increasing or reducing your individual and aggregate utilization ratio. IIRC the actual thresholds are at .5% increments. e.g. 9.5%, 29.5%, 49.5%, 69.5%, 89.5%. I round down in the event if one is carrying a balance and interest fees may in fact increase one's reported utilization by statement close date. Thus, making them cross over the utilization threshold inadvertently. Plus, it's kind of easier to remember.