Boosting a Mortgage score quickly (dirty scorecard)

[Anonymous]

Hello everyone! I’ve been lurking on here for a while and I’ve read many great posts which have helped me start on the path of rebuilding my credit. I wanted to lay out the facts and what my intentions are and just get some advice, to determine if this is the best solution. 

Current Mortgage Scores as of 6/2020

EQ FICO5 = 655

TU FICO4  = 622

EX FICO2 = 636

Revolving CC Debt as of 6/12/20

CapOne PL 7790 / 7750   (100%)

CapOne QS 1000 / 1650  (61%)

Citi 1846 / 3000   (63%)

BofA 709 / 1000 (71%)

CapOne Walmart 139 / 480 (30%)

Chase 2656 / 5000 (AU Account)  (54%)

TOTAL 14140 / 18880 (75%)

Oldest account is the Chase (AU) at 23 years, AAoA is around 10 years. No new accounts within 6 years. I’m addition to the above accounts, I have a mortgage (9 years old) and an auto lease payment (2 years old)

I have numerous baddies, including a few 30D, 60D, 90D.  The most recent on 1/2017 which was a 30-day on the mortgage. I have a total of 3 charge off accounts, all over 3 years old. One is paid and shows zero balance, One is unpaid and shows a $460 balance BUT hasn’t reported since 4/2017. (I don’t want to wake it up) The last one is reporting and showing a balance of $550. All the baddies were over a 6-8 month period when a took a massive pay cut when I switched careers in 2016-2017. I’ve tried goodwill letters but no luck yet. 

My goal right now is to raise my middle score as much as possible within the next 1-2 months. I’m selling my house and purchasing another one (already in contract) and my new mortgage has already cleared UW and is approved. My LO wants me to do everything I can to get my middle score up, so that I can save on paying mortgage points at closing. I have no control over the AU account, the balance will fluctuate by $50-100 every month. My closing date will be toward the end of October or beginning of November. All my accounts report within the first few days of the month. 

Since my LO pulled my credit on 6/2020, I have paid down to the following

CapOne PL 7600 / 7750   (100%)

CapOne QS 460 / 1650  (28%)

Citi 836 / 3000   (28%)

BofA 280 / 1000 (28%)

CapOne Walmart 0 / 480 (0%)

Chase 2750 / 5000 (AU Account)  (55%)

TOTAL 11926 / 18880 (63%)

I haven’t had my mortgage scores pulled again but using my FICO8 “updates” that I get via Citi, Wells and CapOne show an average of +2 points from 6/2020 through 9/2020 with the above reduction in CC debt. It could have been more but I think I lost a few due to the 6/2020 hard pull. I have no other inquiries in the last year. 

Right now, I have about $2800 I can put towards these balances. First and foremost, I’m getting the CO that’s still reporting for $543 paid. They agreed to settle for $270. Next my plan was to pay CapOne QS to $0, Citi to $0 and BofA to $0. Then I would pay the left over $950 to CapOne PL which would bring the utilizing on that card to 88%. It would leave only that card and my AU account reporting balances with everyone else at $0. 

So, is this the best I can do with the allotted amount of $$$ and timeframe? If not, please suggest what you think my best course of action is. 

[AllZero]

@Anonymous  What middle score are you trying to achieve?

You have a good plan of action.

As you mentioned, pay down Capital One Platinum to at least 88.9% and under. Then, pay to zero the Citi, QS and BoA. You want to get close to AZEO as best as possible.

That AU Chase card will be a negative scoring factor. Is the primary account holder able to pay to zero?

[Anonymous]

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@Anonymous wrote:

Hello everyone! I’ve been lurking on here for a while and I’ve read many great posts which have helped me start on the path of rebuilding my credit. I wanted to lay out the facts and what my intentions are and just get some advice, to determine if this is the best solution. 

Current Mortgage Scores as of 6/2020

EQ FICO5 = 655

TU FICO4  = 622

EX FICO2 = 636

Revolving CC Debt as of 6/12/20

CapOne PL 7790 / 7750   (100%)

CapOne QS 1000 / 1650  (61%)

Citi 1846 / 3000   (63%)

BofA 709 / 1000 (71%)

CapOne Walmart 139 / 480 (30%)

Chase 2656 / 5000 (AU Account)  (54%)

TOTAL 14140 / 18880 (75%)

Oldest account is the Chase (AU) at 23 years, AAoA is around 10 years. No new accounts within 6 years. I’m addition to the above accounts, I have a mortgage (9 years old) and an auto lease payment (2 years old)

I have numerous baddies, including a few 30D, 60D, 90D.  The most recent on 1/2017 which was a 30-day on the mortgage. I have a total of 3 charge off accounts, all over 3 years old. One is paid and shows zero balance, One is unpaid and shows a $460 balance BUT hasn’t reported since 4/2017. (I don’t want to wake it up) The last one is reporting and showing a balance of $550. All the baddies were over a 6-8 month period when a took a massive pay cut when I switched careers in 2016-2017. I’ve tried goodwill letters but no luck yet. 

My goal right now is to raise my middle score as much as possible within the next 1-2 months. I’m selling my house and purchasing another one (already in contract) and my new mortgage has already cleared UW and is approved. My LO wants me to do everything I can to get my middle score up, so that I can save on paying mortgage points at closing. I have no control over the AU account, the balance will fluctuate by $50-100 every month. My closing date will be toward the end of October or beginning of November. All my accounts report within the first few days of the month. 

Since my LO pulled my credit on 6/2020, I have paid down to the following

CapOne PL 7600 / 7750   (100%)

CapOne QS 460 / 1650  (28%)

Citi 836 / 3000   (28%)

BofA 280 / 1000 (28%)

CapOne Walmart 0 / 480 (0%)

Chase 2750 / 5000 (AU Account)  (55%)

TOTAL 11926 / 18880 (63%)

I haven’t had my mortgage scores pulled again but using my FICO8 “updates” that I get via Citi, Wells and CapOne show an average of +2 points from 6/2020 through 9/2020 with the above reduction in CC debt. It could have been more but I think I lost a few due to the 6/2020 hard pull. I have no other inquiries in the last year. 

Right now, I have about $2800 I can put towards these balances. First and foremost, I’m getting the CO that’s still reporting for $543 paid. They agreed to settle for $270. Next my plan was to pay CapOne QS to $0, Citi to $0 and BofA to $0. Then I would pay the left over $950 to CapOne PL which would bring the utilizing on that card to 88%. It would leave only that card and my AU account reporting balances with everyone else at $0. 

So, is this the best I can do with the allotted amount of $$$ and timeframe? If not, please suggest what you think my best course of action is. 

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Honestly, you biggest boosts are going to be from paying down that CC debt. Mortgage scores love $0 balances and all your cards have balances but 1. I would also say you should remove yourself from that AU account as it is also weighing you down at 55% util.

If possible, I would pay down the Cap one that is over maxxed out to less than 90% and pay off Walmart, BoA, and Cap One QS. Then get Citi under 50%, preferably under 29%, but whatever you can do with that one. Those would be easy $0 balances.

[Anonymous]

@AllZero I’m going for the best possible score. I’ve read on here that EX is the hardest mortgage score to move. My LO says their mortgage points have “tiers” pretty much every 20 points on the FICO. So my 636 is in the 620-640 tier, another is 640-660, then 660-680, so on. I’d save about $900 in discount points per tier. 

Unfortunately, there is no way to get the Chase paid down right now. I’m just trying to do whatever is within my means right now to do the best I can. After I close, I’ll have enough liquid assets (from the equity) to be debt free less the new mortgage and my auto lease. 

[Anonymous]

Edit to my post:

I didn't see you did a big pay down already.

I would remove yourself as AU from chase and have it removed from your CRs.

I would pay all the small balances down to 0%. The Cap One Plat I would pay down with whatever you have left, as 100% util is hurting big time.

[Anonymous]

@Anonymous I’d love to remove the AU but it’s my oldest reporting account at 23 years. My fear is that if I remove it and the others don’t report the zero balances in the first cycle, I’ll ruin the aggregate UT % temporarily. If I’m forced to close on the mortgage and the UT is high, it’ll hurt me more than the increase score will help after the closing. 

[OmarGB9]

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@Anonymous wrote:

@Anonymous I’d love to remove the AU but it’s my oldest reporting account at 23 years. My fear is that if I remove it and the others don’t report the zero balances in the first cycle, I’ll ruin the aggregate UT % temporarily. If I’m forced to close on the mortgage and the UT is high, it’ll hurt me more than the increase score will help after the closing. 

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I did calculate your aggregate util, and the point difference is minimal, 63% w/AU vs 66% without. And the percentage of credit age (15%) vs credit usage/amounts owed (30%) indicates your debt outweighs the age factor by 2x. So IMO, removing yourself would help more than hurt.

[Anonymous]

@OmarGB9  Thanks, I totally see what you mean now.

i just ran the % myself and I had an idea. Once I pay everything as planned and leave only Cap One PL at 88% UT, my total aggregate is gonna be at 50%. I gotta really find a few more $$ to get the aggregate below 49% so I can possibly get a few points for crossing that threshold.