It's come time for my fiance and I to purchase a home and am having a hard time qualifying for a mortgage due to my bad choices with credit a few years back. Wondering how I should go about fixing my report ASAP as we want to buy a home by the end of summer if at all possible. I have the funds to pay off most, if not all negative items, but will that drastically increase my score immediately?
Positives on report:
AU on Amex (10,000 limit, 500.00 balance)
AU on store card (1500 limit, 0 balance)
Car loan (currently owe about 20,000)
Two store cards (250 limit each, 0 balance)
Indigo credit card (300 limit, 0 balance)
Negatives on report:
7 collections (ranging from 200-1200 each. 3 different cable companies, a fitness center, a credit card, and cell phone bill)
2 collections that have been paid but are still on report
2 unpaid credit card charge offs (First premier 300 balance, citibank card 600 balance)
1 paid credit card charge off (BoA from 2015)
55 inquiries (purchased my car last summer and due to bad credit, they ran my report to every bank possible)
1. HOLY CRAP I have never seen that many inqs! I went through something similar a year ago and got almost 20 in the course if a week.. yikes!
2. what are you current FICO scores?
3. are you or your fiance Veterans by channce?
4. do you know if you qualify for FHA?
My current FICO scores are 606, 607 and 597. My fiancé is a veteran but she currently has a 6000.00 charge off (that we are paying 800.00 on monthly) so she can’t be approved either at this point. We do qualify for FHA as well but haven’t been approved
with your scores you should get an FHA approval as long as you have 12 months of good payment history on your current accounts.
I'm sorry to have not answered your original question..
IF you can get PFD arrangements with your collections.. when they delete them you will most certainly get a nice score boost. Charge offs will be another one that will help your score when you pay them.. bc they will stop updating monthly ( I assume they are? and they are smaller amounts so thats a good place to start)
How old are the collections and charge offs?
Also, how many months off good payment history do you have on those possitive accounts?
You should use your five cc's and auto loan to make monthly on time payments.Pay down any cc balances down to 1-6%.Learn the azeo method.Keep your old cc account open and don't apply for any credit accounts for one year before the mortgage app.Your biggest Fico score improvement will come only if your cr becomes derogatory free.GOOD LUCK...