Will calling on old negative student loan cause them to update my report and lower my mortgage score

[Anonymous]

I am currently trying to get a va loan and we are supposed to close on the 26th. The problem is that I need 3 more points. I have an old US Dept of Education loan that went FP and was fixed with a rehab and sold off I guess. I was active duty at the time and it only went late because I didn't renew a deferment or forebearance because I had three major strokes and literally couldn't. I am thinking that since they were so late and were from 2015 that getting them removed would boost my score. The issue I have is that they stopped reporting a balance date in 2015 and I am worried that if I call they will update that date and my score will drop again. I had an old bad chase account I called to discuss and that caused them to update a date and my score dropped 12 points. I am trying to avoid that. That Chase account wasn't paid. The student loan is listed as pad so maybe it won't update??? Any advice before I call them? 

[Mortgage-Specialist]

Honestly, may increase or decrease your score. Ask your lender if they have access to a "what if" simulator. Its attached to the credit scoring system and will show how much your scores will increase or decrease before hand. I use this all the time for my clients and it has been very accurate. The problem is that it's pretty difficult and timely to get edu loan companies to reverse lates.

Here is what is more important. The VA does not require a specific minimum credit score. Nearly all lenders have these credit score overlays.
It's awful to think that 3 points would prevent you from acquiring this loan.

(Mod cut-It against this forums policy to solicit any form of business.)

[VALoanMaster]

Hi Airbornejones,

Why do you need 3 more points?

I doubt that it will help your scores to have the accounts deleted simply because they're  so old.

What I would is have a lender run a what if credit simulator to see if deleting the account will improve your scores.

There maybe something else that can be addressed to bump up your scores.

I just picked up 20 points for a Veteran by having him pay off an old $200 charge-off & doing a rapid re-score.

A lot of lenders won't tell you about rapid re-scoring options because they don't want to spend the money.

[Anonymous]

I need 3 more points because the lender is requiring me to have a 600 mortgage score. I was right at a 600 until I started messing with my old trade lines trying to get to a 620 to avoid heavy closing costs. I called on an old charge off causing them to update a balance date that dropped my score 12 points. I have recovered 6 of those on my middle score so far. I was successful in getting my only two collections removed yesterday. I for a deletion letter for one and the other will be deleted on the 8th as long as their servicer reports my payment to them when they do their updates. I had two charge offs that I called on. Chase hadn't updated in 3 years. Capital One has been updating monthly so calling them didn't hurt me. The executive office at Capital One may be deleting it this week since they sold the debt off. The collector they sold to isn't reporting yet so I am avoinding calling them until I close. Hopefully at least the 2 collections clear off and my score goes up. We have rapid rescored twice. I also paid all of my cards to less than 30%. One still needs to update because it is right at 30% on my report. I can't afford more because I have to pay for the appraisal today and then another $2,000 when we close. The seller is paying the other $7,000 we are being charged because my score is below 620. Maybe all of what I did will get me to a 620 though.

The collections are from 9/2016 and 5/2018

[Anonymous]

I meant to say I recovered 7 of those. My Experian is a 603 and Transunion is a 595. I think my Equifax is a 595 too. My Fico 8 scores are 644

[Mortgage-Specialist]

I'm sorry to hear how many hoops you have to jump through to get this loan. Its unfortunate knowing that lenders required over is a 600 score when the VA does not require that. We are seeing 550 score borrowers getting approved fo VA loans.

[Mortgage-Specialist]

I'm sorry to hear how many hoops you have to jump through to get this loan. Its unfortunate knowing that lenders required over is a 600 score when the VA does not require that. We are seeing 550 score borrowers getting approved fo VA loans.

[Anonymous]

Are they being hit with points for closing like I am? I am really hoping I did enough to get a 620 mortgage score. 

[Anonymous]

We are being charged over 2 points, $7100, for not having a 620. I don’t even have a funding fee because I am 100% and permanent.

[VALoanMaster]

That's great news, you have a lender that is helping you get your scores up so you get a better rate.

Here's something I tell a lot of my clients.

Just because a lender says they can go down to a 550 or 580 score doesn't mean that is in your best interest as a consumer!

I would hold off on doing anything with the student loans until you see how the deleted collections & paid down credit cards impact your scores.