Add 30 points fast

[Anonymous]

I am in the middle of trying to quality for an FHA mortgage.  My middle credit score is 556.  I need about 30 points.  I paid off all collections as directed by mortgage company only to find out that this has no effect.  Now he told me to ask them for letters saying they will remove the collection items from my credit report and of course the answer is no because they have my money.  I have a car loan and 2 credit cards with high balances.  Will paying them down get me 30 points on Equifax?  What else can I do?

[Anonymous]

No one can really say...if you would get the points...send a GW letter to the paid collection...for removal...who is the CA???...pay down your CC's to 1-5% UTL..for the biggest impact...GOOD LUCK!!!

[Anonymous]

All medical collections, the only national company is CBCS.  The rest are local companies.  Thanks for the advise.

[Anonymous]

I agree with sly, send GW letters for the paid collections.

What is your util on your CC? If you pulled your scores here, run the score simulator, it is fairly accurate.

How old is your oldest account?

[Anonymous]

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@Anonymous wrote:

I am in the middle of trying to quality for an FHA mortgage. My middle credit score is 556. I need about 30 points. I paid off all collections as directed by mortgage company only to find out that this has no effect. Now he told me to ask them for letters saying they will remove the collection items from my credit report and of course the answer is no because they have my money. I have a car loan and 2 credit cards with high balances. Will paying them down get me 30 points on Equifax? What else can I do?

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Ok 2 things can help you out, but it may take 30 days or whenever your CC reports to the CRA's.

1) Search for GW letters and send them to all CA. Try to get those removed.

2) Try to get your Util to 10% or less. Util is the sum of all current debt of all CC divided by total CL. Example you have 2 CC's, one has 100 balance with 500 CL and other one has 400 balance with 500 CL * 100.

So total balance is 500, divided by total CL which is 1000. 500/1000 *100 = 50% which is very high!

If you had a balance of $50 on each card, your util would be 10%.

Hope that helps!

[Anonymous]

Please forgive me for piggy-backing, but you brought up a very interesting point that I've been wondering about ...

We have a Sl that had, as it's highest balance $52K ... we still owe approx. $28K.

We also have a car loan that was originally $7500, and we still owe approximately $2000 on it.

We have nothing else outstanding (except for 2 collections that total no more than $1K and we're negotiating to have them PFD'd)... and TrueCredit says that our debt to credit ratio is 50% ... does that sound right?

Or is TC counting the unpaid collections (our CRs haven't been updated yet)?

Please forgive me for the dumb questions!!!

[Anonymous]

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Wonderin wrote:
Please forgive me for piggy-backing, but you brought up a very interesting point that I've been wondering about ...

We have a Sl that had, as it's highest balance $52K ... we still owe approx. $28K.

We also have a car loan that was originally $7500, and we still owe approximately $2000 on it.

We have nothing else outstanding (except for 2 collections that total no more than $1K and we're negotiating to have them PFD'd)... and TrueCredit says that our debt to credit ratio is 50% ... does that sound right?

Or is TC counting the unpaid collections (our CRs haven't been updated yet)?

Please forgive me for the dumb questions!!!

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Your installment util is 50%.

FICO scoring counts installment and revolving util seperate, revolving util counts for much more than installment util, but installment util does still count for some points.

[Anonymous]

CBCS told me that they are going to cease reporting to credit reports.  Has anyone else heard that?  Will it just dissappear from credit reports?

[Anonymous]

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mamaof4 wrote:

CBCS told me that they are going to cease reporting to credit reports.  Has anyone else heard that?  Will it just dissappear from credit reports?

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They responded to my DV saying they had closed to account and returned it. However, I had to dispute it to get it removed from my CR.

[Anonymous]

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@Anonymous wrote:

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Wonderin wrote:... and TrueCredit says that our debt to credit ratio is 50% ... does that sound right?

Or is TC counting the unpaid collections (our CRs haven't been updated yet)?

Please forgive me for the dumb questions!!!

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Your installment util is 50%.

FICO scoring counts installment and revolving util seperate, revolving util counts for much more than installment util, but installment util does still count for some points.

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Ah. Yuck. Thank you, Sidewinder!!

If I can ask another dumbo question (believe me, I'm full 'o them!)? 50% UTL is BAD isn't it? Even though they're installment loans, it can still keep us from getting any new credit, can't it?

Other than paying it all off (which we can't do -- WISH we had an extra $30K laying around, LOL!), is there anything we CAN do to being it down? Would credit cards help? Assuming, with our FICO, we could GET one, that is.

/aside/ Congrats on making Moderator!! Yay!!