Need my FICO 2 Mortgage to increase 60 points

[Anonymous]

Hello score wizards - 

My husband and I are abotu to apply for a mortgage.  I would love to be able to get into a standard loan.  For the past two and a half years I have worked deligently to rebuild my credit.  My past marriage was very toxic financially.  (My ex-husband is now filing bankruptcy.)  I have some debts left over from the previous marriage that I am paying.  The last six months of our marriage were really tough, and I have three accounts with 120 late payments on it.  These accounts are two capital one cards and a personal loan from One Main Financial.  All my accounts now report current, my last late payment was May of 2016.  

My FICO 2 mortgage according to erxperian has been hovering right around 661 forth epast 6 months.  

We have $40,000 for a down payment for a house and $10,000 to pay off debt.  

My question is what would be most strategic way to pay off debt - 

QuickSilver

Balance 161  

Sallie Mae Fall2018

Current Balance 13790.97  

One Main Financial

Current Balance 3262 Credit Limit 1650   Original Balance 13769   Original Balance 5429 Ratio 9.757575758   Ratio 100.1595613   Ratio 60.08473015

Capital One

Balance 1462  

Navient 1

Current Balance 8896.68  

RICU Car loab

Current Balance 2817 Credit Limit 7650   Original Balance 9500   Original Balance 3540 Ratio 19.11111111   Ratio 93.64926316   Ratio 79.57627119

Credit One

Balance 60  

Navient 2

Current Balance 4973.52  

Lending Club

Current Balance 2612 Credit Limit 850   Original Balance 5500   Original Balance 3000 Ratio 7.058823529   Ratio 90.42763636   Ratio 87.06666667

Chase

Balance 23  

Navient 3

Current Balance 3438.23         Credit Limit 8000   Original Balance 3694         Ratio 0.2875   Ratio 93.0760693        

David's Bridal

Balance 330  

Navient 4

Current Balance 2569.15         Credit Limit 1350   Original Balance 2750         Ratio 24.44444444   Ratio 93.42363636        

Home Depot

Balance 1354  

Navient 5

Current Balance 1971.2         Credit Limit 7000   Original Balance 2218         Ratio 19.34285714   Ratio 88.87285843        

Banana Republic

Balance 312                 Credit Limit 5000                 Ratio 6.24                

Kohls

Balance 0                 Credit Limit 2500                 Ratio 0                

Amex

Balance 0                 Credit Limit 5000                 Ratio 0                   Total Balance 3702   Total Balance 35639.75       Total Balance 8691   Total Available 39000   Total Original 37431       Total Original 11969 Ratio 9.492307692   Ratio 95.21452806       Ratio 72.6125825                      

I have read something about not having more than one credit card report a balance.  I am carrying a balance on Home Depot and David's Bridal because they were those zero interest deals, but is better to pay them off?

My Chase,Quicksilver, and credit one I pay off weekly, or at the very least by the report date.

My thought is to pay off the OMF, Car loan, and lending club, because that frees up $300 a month in income for the debt to income ratio thing. 

Will getting Sallie Mae under 100% help?

I have disputed all negative items, those that could be removed have been. 

Thank you for any assistance!

[CreditInspired]

Hi OP and welcome to myFICO

Honestly, because there’s so much info and the formatting is kind of off, I’m having a difficult time figuring out what is what.

So, do you mind providing the info in this format:

Lender, CL, outstanding balance due, APR
Example:
Chase $5K/$3.8K, 23%

Leave out extraneous info like orig balance, ratios, etc.

Second, please provide your 3 FICO mortgage scores. If DH will also be on the mortgage, provide his 3 scores too.

Third, provide incomes and minimum monthly payment on all loans and CCs.

Fourth, any outstanding baddies for both that have not been removed or discussed—collections, foreclosure, BK, short sale, repo.

So this is a starting point for others to provide assistance on the things you should work on that might increase your scores.

[Anonymous]

Thank you so much for the feedback on how to post my info - 

Debt - 

Credit Cards

Cap One $161/$1900, 16.99%

Cap One $1462/$7,650, 24.65%

Cred One $59.82/$850.00, 25.9%

Chase $23/$8000, 24.99%

DavBrid $330/$1350, 0%

HomeDep $1354/$7000, 0%

BananRepub $312/$5000, 26.99%

Kohls $0/$2500, 25.74%

Amex $0/$5000, 0%

Fico Score 2 Mortgage Lending -

Me  - Experian 661

DH- Experian 806

How do I get FICO 2 scores for Equifax and TransUnion?  I obtained the Experian from their website, and all the other credit score services I have provide FICO score 8, which is not the same.  My Fico 8 is over 700.  

Our combined income is $145,000

Minimum Monthly payments on all cc, car loans, personal loans and student loans is $1500. 

Thank you so much for your assitance! 

[CreditInspired]

OP. Thank you so much. This helps a lot.

Since you have $10K to pay off debt, this is how I would do it:

To get a bump in score, decrease the number of accts reporting balances. Pay off 6 of these 7. Make sure the one that you don’t pay off have a balance of <8.9% reporting. This is the AZEO method—all accounts at 0 except one.

Cap One $161/$1900, 16.99%
Cap One $1462/$7,650, 24.65%
Cred One $59.82/$850.00, 25.9%
Chase $23/$8000, 24.99%
DavBrid $330/$1350, 0%
HomeDep $1354/$7000, 0%
BananRepub $312/$5000, 26.99%

GL2U

[Anonymous]

Will it get me a 60 point bump? Because if it's not going to get me over the 720 hurdle, I think I would rather pay off the CFA's to free up income or work towards having 20% down, in which case my score is enough.

I am wondering if, no matter what balances report on my cc, the baddies will continue to hold my score back for the next 4 years.

Interested in thoughts.

TIA

[fishbjc]

120 day baddies will hold you back for SEVEN years!   (ouch, ask me how I know).  Sometimes awful things happen to good people and this appears to be one of those times.  At least be happy that you are taking control and moving forward toward a happy future. 

My advice is to follow someone elses advice, LOL.  Good Luck and may your mortgage dreams come true!!!

[Anonymous]

@fishbjc I know they will affect for 7 years, my question is - is 660 range the best I can hope for with those reporting? Because if that's the case I'll put all my resources towards having 20% down.

All advice is appreciated!

[iv]

---

@Anonymous wrote:

How do I get FICO 2 scores for Equifax and TransUnion?  I obtained the Experian from their website, and all the other credit score services I have provide FICO score 8, which is not the same. 

---

It's not FICO 2 that you need from Equifax and Transunion - it's FICO Score 5 for EQ and FICO Score 4 for TU.

You can get them from the MyFICO.com 3-B reports or subscriptions, under the "additional FICO score versions" section, listed as "Commonly used in mortgage lending".

The good (or bad) news is that EQ5 and TU4 could generate quite different scores than EX2, and what matters for a mortgage is whichever ends up as the MIDDLE of the three scores.

I'd recommend doing a one-time $60 3-B report to check where you really are with your mortgage scores. It's possible you might be closer to your target number than you think...

https://www1.myfico.com/products/fico-scores-three-bureau-credit-report

[Anonymous]

Hello,

I pulled all three and Experian is my middle score. Equifax is one point higher.

Thank you for taking the time to offer options.