@Skeepoola 1. How do you have 50k in CC debt when you listed your cards and respective limits and the sum of those limits you listed is 40,500? 2. "I have the means to make substantial payments on my debt but not unlimited because I also want to save for a home in 6 months.", that CC debt is really going to hold you back on your credit score, preapproval odds etc... and will play a big factor in your rate come the time you do get preapproved. A different perspective on your take what I quoted would be to absolutely demolish your debt with intent to get a better rate which will save you significant money long term. I would focus on getting the CCs down first and foremost, the auto loan would be next... you have plenty of income to do so as well..
@Skeepoola wrote:Hello All-
I'm hoping to apply for a conventional in mid '21. First time home buyer. I'd really appreciate any advice on how to improve my current situation outlined below. I've been blessed to get a promotion this year and my income is now $220K. I have the means to make substantial payments on my debt but not unlimited because I also want to save for a home in 6 months.
My mid mortgage score is EQ. 608. TU is 599 and EX is 620. Here're are more details:
1) 90% utilization on CCs (total CC debt is $50K). Here're my CCs and credit limits.
- Citi Bank Card - $15K
- Capital One - $1K
- Discover - $2.5K
- Barclays - $4K
- Chase Marriott - $8K
- Chase Slate - $5K
- Chase United - $5K
2) Auto loan: $40K
3) Student loan: $100K
4) I'm current on all payment
5) I have four 30-day lates. most recent is from November 2017. Oldest is from June 2016. 3 are on CCs and 1 on an auto installment loan that's paid off in full 9 months ago
6) Average age of accounts in 11 year
7) One medical collection for $1,800
Thanks all. happy/safe holidays and good lck if you're on same journey as me.
Welcome to the forums @Skeepoola .
Who is the collection agency for the medical debt? This information could help other's guide you in takin care of this.
Without the collection agency information, my suggestion would be to see if the original owner (hospital/clinic/doctor) would be willing to bring the debt back in house for payment in full (effectively removing the collection from your reports).
I would also start a Good Will (GW) campaign to try and remove the reported lates (you can search the forum for information, or wait for @AllZero to come along and paste links to pertinent threads).
@Birdman7 also has some useful links in their signature.
All Zero Except One (AZEO) technique will help you get the most out of your score. If you can't reach AZEO, you'll definitely want to get below 29% aggregate utilization... better yet below 8.9% aggregate utilization and below 29% on individual cards.
Mortgage scores like to see fewer than 50% of cards reporting a balance... with an additional score boost for 1/3rd reporting a balance (2 cards report $0, one card reports <8.9%).
Good luck with your endeavors!
Great advise from all the above.
You can try snowball or avalanche payment approach depending on your APR, situation.
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: 8.9%, 28.9%, 48.9%, 68.9%, 88.9%
Remember these individual utilization thresholds: 28.9%, 48.9%, 68.9%, 88.9%
If you're not crossing a threshold, you won't be getting points.
Aggregate: 10-15 points for aggregate crossing a threshold.
Individual: ~5 points points for individual crossing a threshold.
Look into AZEO Technique. All Zero Except One card reporting a small balance e.g. $10-$20. Use a bank card. Do not use a store or charge card.
Get your CC aggregate utility at or below 8.9% for full FICO points optimization.
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.
I would recommend reading the below from ABCD2199
The Truth about Credit Card Utilization
My 11 Rules to Credit Rebuilding
FICO Score: What to pay down first?
From Birdman7
General Scoring Primer and Version 8 Master Thread rev.5.17.20
@chiefone4u wrote:I would also start a Good Will (GW) campaign to try and remove the reported lates (you can search the forum for information, or wait for @AllZero to come along and paste links to pertinent threads).
@Birdman7 also has some useful links in their signature.
👍
@Skeepoola This forum is awesome!!! Previous posters have said all that I could think of. I raised my scores 100 pts in two months. I did it, so I know you can too.
Do NOt worry about downpayment or savings right now...only focus on paying off the debt ASAP. When I posted my CC and balances one of the members calculated the monthly interest I was paying and I was floored. You CAN NOT save money when you are bleeding interest.
DO not apply for anything and freeze your reports as a back up measure. I do suggest that you request SP CLI AFTER your UTIL drops and scores rebound.
Keep us posted and we can try our best to keep you on track when we know what your plan is. Best of luck!!' It can be done.
012019 Fico8/Mortgage Score: 
