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So close but stuck

New Member

So close but stuck

I've done just about all of the things that I could do to repair my credit that I know of, such as paying all collections, and getting my one credit card down to 1 or 2 percent usage, and my last late payment was over 15 months ago. Even with all of this my average fico mortgage score is only 610, 10 points short of the magic 620 needed to get a mortgage with most people. A mortgage broker I spoke with told me he couldn't do anything until the bankruptcy I had with my ex-wife in 2008 ages off in 2018 because I had some financial trouble afterwards due to divorce and child custody and support battles. Isn't there anything I can do to gain that last ten points other than wait? Thanks Everyone. 

4 REPLIES
Regular Contributor

Re: So close but stuck

Paying collections doesn't help your score the slightest little bit,in fact in some cases it can even hurt your score.Did you try to negotiate pay for delete on the collections?Thats what should have been done.Some collection agencies will agree to pfd and some won't.Since they are paid I would recommend sending letters (sometimes several)asking the collection agencies to delete.Otherwise known as goodwill letters.
Message 2 of 5
New Member

Re: So close but stuck

Thanks. I did try pay for delete with no sucess. I just talked to a mortgage broker who told me to get a second credit card and use it but keep it paid off to $10 each month like I'm doing on my first one, and that should get me that last needed points to qualify. Does this sound like decent advise? Hate to keep waiting but I guess it's woth a try.

Message 3 of 5
Established Member

Re: So close but stuck

Is the 610 your actual mortgage score? If you open a new card it may dig you a few points it also lowers the age of your accounts. How soon are you planning to purchase? 

Starting score September 2015 EQ 589 TU 621 Exp 607
Current score July 2016 EQ 667 TU 686 Exp 660
Message 4 of 5
Moderator Emerita

Re: So close but stuck


DrRevKev wrote:

Thanks. I did try pay for delete with no sucess. I just talked to a mortgage broker who told me to get a second credit card and use it but keep it paid off to $10 each month like I'm doing on my first one, and that should get me that last needed points to qualify. Does this sound like decent advise? Hate to keep waiting but I guess it's woth a try.


When you only have one cc it is difficult to increase your scores appropriately. I agree with opening a second card and even potentially opening a 3rd one so you have total 3 cards. But don't keep $10 on each one. Keep $10 on one and zero balances on the others.  Use the cards but pay them before they report so the reported balance is a zero. 

 

I just had a client of mine do this about 60 days ago because he had no score.  He had no score because he never re-established his credit after his Bk discharge about 5 years ago.  He added two cards + one AU card and ended up with a score in the 700's.  Yes, there was a small hit for adding two new accounts, but he was able to purchase a condo right away (he closed 9/1/16).  So adding accounts can be just the right thing to do.

 

Edit: Your LO has a simulator that should be able to accurately tell you what to do to increase your scores. Their simulators are better than the one's we have access to here or elsewhere on the web . 

Message 5 of 5