Another move in the right direction - needing some input please..

[REALISTICLYSPEAKING2014]

 I originally posted this in a slightly different format on the Mortgage board since I am ultimately trying to get a FHA loan, but I know here someone will give me some suggestions if I am headed in the right direction.

I called NFCU and once again they came to my rescue and approved me for a $4,500.00 Debt consolidation loan, where I received the checks on Friday and mailed them on Saturday. My util was at around 64% I was happy to hear that this new LOC reports as an installment loan which is a Plus-Plus in my mind. I also opted to apply with NFCU for a CLOC – Approved…$2500.00. (why not since it was the same hard pull) This one reports as a revolving, but I refuse to use it.
This is what I am forecasting will happen between the 3 CRA's, so please feel free to let me know if I am wrong in my assumptions (it’s been known to happen).
Credit scores currently at:
TRANS – 619 / EXP – 614 / EQU – 587
1. I have sent GW letter with my payoff check to CAP 1 asking for a 1 time 30 day late forgiveness from Jan 2013, as well as changed the letter a bit and emailed directly to CAP 1 CEO, but nothing yet. Will wait another week and try again.

2. ONLY collection remaining is on EQ and is a $1200.00 CA that is scheduled to fall off December 2014, but EQ said they will remove for me NOV 1st if I call them. TU and EXP both removed the original CO account BOA for $500.00 as well as LVNV for this above account of now $1200.00.

IRKS ME TO NO END! I’m disputing again since I don’t agree with the DOFD. This is the 3rd time in a row.
So now I will have UTIL down to zero with only 1 card reporting a 5-9% balance, the new accounts with NFCU listed above which should have a positive in my eyes. Trying to get to at least 640, and when the LO did a rapid rescore estimate on creditplus, it showed between 50-78 points on all 3 CRA’s. I know this is an estimate but Im optimistic once mid November rolls around and the CA is gone, my scores will have a major affect.

Anyone? Advice/Suggestions??

[Burned2manybridgesB4]

Quit adding credit lines. You're taking hits on AAOA, new accounts reporting, and HP hits.

Get the baddies worked out. That's where your gains are lying in wait.

[REALISTICLYSPEAKING2014]

Thanks for the input, but I prett much HAD to add new lines of credit due to the rebuild - largest one was for NFCU for 3,000.00 for a collection that would do a PFD if I paid in full which is done and removed as of July. The others are small trade lines which are all very nominal limits. Right now in my wallet:

NFCU Plat VIsa - 3000.00 - bal 0

Walmart - 400.00 - bal 0

Cap 1 secured - 300.00 bal 20.00

Cap 1 MCard - 300.00 bal 0

Amazon - 600.00 - bal 0

Above accts opened since Feb 14

NFCU auto loan - 30,000 (6 months old)

Plus the 2 new accounts which will show as different reporting and a much better APR

I am officially gardening now...just trying to see if I am "moving on up" so to speak.

Ive been rebuilding since Jan 2012, so its been a slow, ardulous process for me personally, but my dream from the beginning was a new home.

My biggest question is once these new payments post will it cause a dramatic increase in my FICO scores...? I will have the Debt Consol paid within 4 months..

[Anonymous]

What's your auto loan interest?  Remember that you want one of your cards to not be paid in full.  You want one to be at like 10% balance after the due date.  Then about five days after the due date, pay it down to zero, then rinse and repeat.  This util % is very important for your scores.

[REALISTICLYSPEAKING2014]

The auto loan interest rate is an incredible 2.7% and with the Debt consolidation loan I just received, I am keeping my Capital one card at a $20.00 bal with a $300.00 limit which I was always under the impression to report all at zero and report 1 at 9%?

[Burned2manybridgesB4]

You can PIF cards, but the trick is to know when the statement cuts, and have your utilization percentage in the right place at the time, then PIF, so you don't pay interest.

[dashpt]

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@REALISTICLYSPEAKING2014 wrote:

 I originally posted this in a slightly different format on the Mortgage board since I am ultimately trying to get a FHA loan, but I know here someone will give me some suggestions if I am headed in the right direction.

I called NFCU and once again they came to my rescue and approved me for a $4,500.00 Debt consolidation loan, where I received the checks on Friday and mailed them on Saturday. My util was at around 64% I was happy to hear that this new LOC reports as an installment loan which is a Plus-Plus in my mind. I also opted to apply with NFCU for a CLOC – Approved…$2500.00. (why not since it was the same hard pull) This one reports as a revolving, but I refuse to use it.
This is what I am forecasting will happen between the 3 CRA's, so please feel free to let me know if I am wrong in my assumptions (it’s been known to happen).
Credit scores currently at:
TRANS – 619 / EXP – 614 / EQU – 587
1. I have sent GW letter with my payoff check to CAP 1 asking for a 1 time 30 day late forgiveness from Jan 2013, as well as changed the letter a bit and emailed directly to CAP 1 CEO, but nothing yet. Will wait another week and try again.

2. ONLY collection remaining is on EQ and is a $1200.00 CA that is scheduled to fall off December 2014, but EQ said they will remove for me NOV 1st if I call them. TU and EXP both removed the original CO account BOA for $500.00 as well as LVNV for this above account of now $1200.00.

IRKS ME TO NO END! I’m disputing again since I don’t agree with the DOFD. This is the 3rd time in a row.
So now I will have UTIL down to zero with only 1 card reporting a 5-9% balance, the new accounts with NFCU listed above which should have a positive in my eyes. Trying to get to at least 640, and when the LO did a rapid rescore estimate on creditplus, it showed between 50-78 points on all 3 CRA’s. I know this is an estimate but Im optimistic once mid November rolls around and the CA is gone, my scores will have a major affect.

Anyone? Advice/Suggestions??

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I'm just curious here, but if you're trying to apply for a mortgage, why are you applying for new trade lines? From what I have seen and what my loan officer had told me no new accounts for a 12 month period, here you will have two new account plus a recent inquiry not to mention your age of account taking a big hit.....

[REALISTICLYSPEAKING2014]

Good point, but a Debt Consolidation loan is considered an "Installment loan" and with paying all the cards down to zero and 1 reporting at 5-9%, it will not only reduce my overall UTIL it will also show as an installment loan which is different than a Credit card which are all considered to be revolving accounts .

With both new accounts only being 1 hard inquiry with the credit union, it may reduce my FICOs slightly temporarily, but my overall credit limits will increase as well. I'm hoping by tipping the scales, it will be in my favor. Besides the fact my APR on the Debt consolidation is WAY lower than the APR's on the credit cards I am carrying.

According to the mortgage loan forum, I am making a wise decision - I am not applying for a conventional loan, as FHA requirements vary from what I understand.

Now its save save save and garden for at least the next 6 months and payoff the consolidation loan.

By then all will even out and I will be at a good place from what my LO tells me.

p.s. I only have 2 accounts that are over 2 years old - all the others have bene opened in the last 8-9 months. The fun of rebuilding....Sighhhh...

[dashpt]

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@REALISTICLYSPEAKING2014 wrote:

Good point, but a Debt Consolidation loan is considered an "Installment loan" and with paying all the cards down to zero and 1 reporting at 5-9%, it will not only reduce my overall UTIL it will also show as an installment loan which is different than a Credit card which are all considered to be revolving accounts .

With both new accounts only being 1 hard inquiry with the credit union, it may reduce my FICOs slightly temporarily, but my overall credit limits will increase as well. I'm hoping by tipping the scales, it will be in my favor. Besides the fact my APR on the Debt consolidation is WAY lower than the APR's on the credit cards I am carrying.

According to the mortgage loan forum, I am making a wise decision - I am not applying for a conventional loan, as FHA requirements vary from what I understand.

Now its save save save and garden for at least the next 6 months and payoff the consolidation loan.

By then all will even out and I will be at a good place from what my LO tells me.

p.s. I only have 2 accounts that are over 2 years old - all the others have bene opened in the last 8-9 months. The fun of rebuilding....Sighhhh...

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I understand that.....so i'm guessing your not planning on buying for another 12 months or so then. I thought you were trying to buy now. In that case you should be good next year summer. Good luck!!!