Its best to have 3 revovlers in your name and have only 1 report or AZEO. But you want a mortgage really soon. Getting new credit before a mortgage will lower your score for one. And lenders dont really go for new credit 6 months to a year before applying. So really you only have 1 revolving account and 1 loan. Cant count the AU card. FICO like 3 cards and a loan for the best credit mix in a rebuild. Talk to a lender and see what they say. JMO of course. Build up your score first. Higher scores. Lower interest which is thousands and thousands saved over the life of the loan rather than just getting a house real soon. The market may cool down some then too after more rebuilding on your end. Others will chime in on their thoughts.
@Anonymous wrote:
@Anonymous wrote:Below is a full picture of my credit profile. Can anyone please give advice on what I need to do next in order to be approved for a mortgage in the next few months? As you can see i recently paid off in full all charge offs and collections and am waiting for my report to update for two of them. looking for advice on what to do next.
OPEN ACCOUNTS:
Cap One Auto Finance (we traded in both our cars for a family SUV)
Open Date - 09/2021
Balance - $52, 533
No lates, Pays account as agreed
Capital One CC - AUTHORIZED USER
(joint CC with fiance)
Open Date - 06/2021
Credit Limit - $300
Last reported balance - $286 (i paid this down to $0 and should report on the 15th or 16th)
Capital One CC
Open Date - 05/2021
Credit Limit - $800
Last reported balance - $0 (plan on reporting about $20 this month)
Dept of Ed - Navient (consolidated student loans)
Open Date - 04/2021
Loan Amount - $17,902
No lates, pays account as agreed
CLOSED ACCOUNTS:
7 Dept of Ed/Navient student loans various amounts - closed
Opened various times between 2014 and 2016
reporting one 90 day late payment for all 7 accounts - Sept 2018
Capital One CC
Charge off - DOFD - Dec 2019
Updated to Paid in Full 12/2021
Local Credit Union Auto Loan
Opened Account - 05/2017
Three 30 day lates - 08/2019, 09/2019, 02/2020
mailed goodwill letter Jan 7, 2022
Credit Acceptance Co Auto Loan
No lates - paid account as agreed.
balance - $0
Opened - 09/2016
Last Updated 06/2017
Elan Financial Servi - CC
Charge Off - last updated 11/2021
Last reported balance - $433 (just paid this off in full waiting for it to update)
Credit Limit - $600
DOFD - June 2018
Collections:
IC Systems
Balance - $108
Just completed a PFD will fall off in 30 - 45 days - waiting for report to update.
FICO SCORE 8
EQ: 624
TU: 589
EX: 606
First in order to figure out the best cause of action there is more info needed called DP's
Your combined montly income before taxes is needed.
Lets look at that new car loan with Cap 1
How many years is it for? what is the monthly payment? what is the interest rate?
The $300 CL card that is open. You can not use more then $60 on it or you will take a score hit. The $800 card you can not use more then $200 or the same will happen.
Paid CO's will still remain on your credit reports for 7 years, but once paid off they stop reporting. So utilization will help you but a CO is one of the worst things you can have on your credit reports. this would limit you to a future FHA or VA loan if applicable if you can increase your credit scores.
What makes you think the collection at IC Systems will fall off your report? is it now 7 years old? paying a collection or charge off does not remove it from your credit report.
You really should try to get your scores up to 620 or you will find interest rates on a new mortgage will be too high. If you can qualify at all.
That new car loan is most important right now so please provide the info I requested above. I know it is a big loan but it is most important that if you want mortgage that you never pay this car loan late. Paying it just one month late may kill your chances at a mortgage loan at all.
Thanks
Mark
Incorrect on usage. Its whats reported on the statement date. You can use all you want of your credit line as long as its paid down <9% before the statement cuts. More usage. Better chance for CLI's. That internet farse of dont use more than 30% of your credit line is just that.
On the other hand the 3 cards (2 secured) will help with the rebuild FICO bonus. You'll gain more with them and play the AZEO game than what your AAoA's will do afterwards. If you AAoA's stays over 2 yrs. You'll be fine.