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Hi Booboobus,
I would either apply 2k to each of the cards or pay off the 7k balance card first since the payment is $260 per month.
Then you can add the $260 to the $140 payment on CC#3 and have that paid off in 9 months.
I think you'll see a bigger increase in your scores right away by paying down each of the cards by 2K.
Do not pay off the installment accounts because that could hurt your scores.
I would ask for a one time courtesy delete for the late payment on your auto loan. This will help your scores & improve your chances of getting an approval through the USDA Automated Underwriting System.
Sounds good. Unfortunately my credit union will not remove the late payment. Would it make more sense to wait until that payment is past 12 months old before applying for the loan? Unfortunately im due for a pay increase in 2020 that will take me over the maximum income amount so i dont want to wait too long.
@Anonymous wrote:Sounds good. Unfortunately my credit union will not remove the late payment. Would it make more sense to wait until that payment is past 12 months old before applying for the loan? Unfortunately im due for a pay increase in 2020 that will take me over the maximum income amount so i dont want to wait too long.
Not necessarily. Once the credit cards are paid down & your scores come up, it's possible that the late payment won't matter.
Good to know. One last question: If I received a raise at the start of the year and it’s reflected in my pay stubs, will that be the income used for DTI or will it be the previous years income?
Thank you for your help!
@Anonymous wrote:Good to know. One last question: If I received a raise at the start of the year and it’s reflected in my pay stubs, will that be the income used for DTI or will it be the previous years income?
Thank you for your help!
We will use the income reflected on your pay stubs for qualifying.
Great! Thanks so much for all your help
Get that student loan paid off and you might very well see that score boost well over 640 quickly.
That raise might also make your income too high for USDA as well, but you should be in good shape if you plan to use FHA as your safety net----meaning you have 3.5% saved for down payment plus some money for closing costs.--this way your offer to purchase will look a bit stronger too--as the USDA takes a bit longer to process which won't be easy IF the govt. shutdown occurs again...
If you can focus on paying down/and eventually off those credit cards then you'll also be in a position where you'll see your scores rise as well, but the previous advice regarding that was good.