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I Need Advice on How to Clean my Credit Up for Possible FHA Mortgage Loan

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I Need Advice on How to Clean my Credit Up for Possible FHA Mortgage Loan

Hi FICO Community,

 

Hope everyone is doing well during this tough time. I have been trying to spend this time wisely and work on rebuilding my credit score while I have the time to really focus on it. I have been reading so much on this forum during this time and really admire the support and advice you'll give to each other to help acheive ones goals. Had a membership with a credit repair company called, Credit Saint that was recently cancelled because they did nothing but take my money and dispute with the credit bureaus. If you can, I would really love your advice on what I can work on to finally become responsible with my credit and get approved for a mortgage in the future and some good credit cards.

 

 

My current FICO 8 Scores are as follows:

Experian - 604

Equifax - 585

Transunion - 612

 

Mortgage Scores as of 4/25 are:

Equifax 5 - 540

Transunion 4 - 570 

Experian 2 - 602 (able to check everyday through Experian membership)

 

My current good standing accounts are as follows:

Greendot Secured Card - $0 Balance/$395 Credit Limit (no lates)

Capital One Secrued Card - $0 Balance/$500 Credit Limit (Started out with a $200 credit limit and received an increase. Yay!! lol) No lates

Credit Acceptance Auto Loan - $18,508 Balance/$536.40 Car Payment/23.04% Interest (Yikes, no lates thank godness and hoping to lower APR if you have any suggestions) 

 

Now lets get to the negatives:

Student Loans: $15,230 Balance - 7 accounts, 90-120 day lates on all from Jun and July 2017 but good standing since then (will make payments to bring down balance in next 2-3 months)

 

Collections:

Credit Collection Services - $0/Paid in Full/Org Cred: Comcast (will remove in the next 2-3 weeks due to employee error but was told they do not remove cable collections)

Enhanced Recovery Co - $0/Settled for less than balance/ Org Cred: T-Mobile (told by t-mobile that they would reach out in 3-5 business to recall account and have it removed but not sure if this is the truth, please let me know if anyone has had any luck with this before)

Enhanced Recovery Co - $0/Settled for less than balance/Org Cred: T-Mobile (again told the same thing as above and hoping this works out in my favor, ERC told me no PFD from the beginning until I found this forum and reached out to T-Mobile and asked for a recall on both accts just waiting and praying this happens)

State of MD CCU - $3,186/Not Paid/Org Cred: Prince Georges Comm College - Only reporting on Experian so far and don't want to pay since classed was supposed to be dropped, tried to argue it but school will not forgive balance. If I pay I'm hoping they will delete from Experian

 

Charge Offs:

Greendot Bank - $94 current balance on reports/Paid in Full/Orig Cred: Berkshire Bank - Charged off, will not be removed and waiting for update on credit report to zero balance and status update

Bank of Missouri - $0/Paid in Full/Orig Cred: Total Visa Card - Charged off, will not be removed, balance updated but 4 late payments still showing on transunion credit report

Acceptance Now - $3,812 Balance - cannot get in touch with company to resolve debt, disputed but came back verified, will fall off April 2021

Western Funding - $5,344 balance on reportss/Settled for less than balance/Waiting for update on credit reports to zero balance and updated status

Westlake Financial - $7,602 balance on credit reports/Settled for less than balance/Waiting for update on credit report to zero balance and updated status 

Bridgecrest - $19,457 balance on credit reports - will not settle at all and making $300 payments monthly but hoping to pay it off in full by end of year

 

That's all, I know its a lot to read smh this has been a big lesson learned and hoping to get this all behind me soon.

 

Thank you!

 

 

 

 

Message 1 of 11
10 REPLIES 10
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Moderator

Re: I Need Advice on How to Clean my Credit Up for Possible FHA Mortgage Loan


@CreditHelp_123 wrote:

Hi FICO Community,

 

Hope everyone is doing well during this tough time. I have been trying to spend this time wisely and work on rebuilding my credit score while I have the time to really focus on it. I have been reading so much on this forum during this time and really admire the support and advice you'll give to each other to help acheive ones goals. Had a membership with a credit repair company called, Credit Saint that was recently cancelled because they did nothing but take my money and dispute with the credit bureaus. If you can, I would really love your advice on what I can work on to finally become responsible with my credit and get approved for a mortgage in the future and some good credit cards.

 

 

My current FICO 8 Scores are as follows:

Experian - 604

Equifax - 585

Transunion - 612

 

Mortgage Scores as of 4/25 are:

Equifax 5 - 540

Transunion 4 - 570 

Experian 2 - 602 (able to check everyday through Experian membership)

 

My current good standing accounts are as follows:

Greendot Secured Card - $0 Balance/$395 Credit Limit (no lates)

Capital One Secrued Card - $0 Balance/$500 Credit Limit (Started out with a $200 credit limit and received an increase. Yay!! lol) No lates

Credit Acceptance Auto Loan - $18,508 Balance/$536.40 Car Payment/23.04% Interest (Yikes, no lates thank godness and hoping to lower APR if you have any suggestions) 

 

Now lets get to the negatives:

Student Loans: $15,230 Balance - 7 accounts, 90-120 day lates on all from Jun and July 2017 but good standing since then (will make payments to bring down balance in next 2-3 months)

 

Collections:

Credit Collection Services - $0/Paid in Full/Org Cred: Comcast (will remove in the next 2-3 weeks due to employee error but was told they do not remove cable collections)

Enhanced Recovery Co - $0/Settled for less than balance/ Org Cred: T-Mobile (told by t-mobile that they would reach out in 3-5 business to recall account and have it removed but not sure if this is the truth, please let me know if anyone has had any luck with this before)

Enhanced Recovery Co - $0/Settled for less than balance/Org Cred: T-Mobile (again told the same thing as above and hoping this works out in my favor, ERC told me no PFD from the beginning until I found this forum and reached out to T-Mobile and asked for a recall on both accts just waiting and praying this happens)

State of MD CCU - $3,186/Not Paid/Org Cred: Prince Georges Comm College - Only reporting on Experian so far and don't want to pay since classed was supposed to be dropped, tried to argue it but school will not forgive balance. If I pay I'm hoping they will delete from Experian

 

Charge Offs:

Greendot Bank - $94 current balance on reports/Paid in Full/Orig Cred: Berkshire Bank - Charged off, will not be removed and waiting for update on credit report to zero balance and status update

Bank of Missouri - $0/Paid in Full/Orig Cred: Total Visa Card - Charged off, will not be removed, balance updated but 4 late payments still showing on transunion credit report

Acceptance Now - $3,812 Balance - cannot get in touch with company to resolve debt, disputed but came back verified, will fall off April 2021 (contact them through the info on your credit report, if that fails, then write to the CRA demanding its removal as you cannot contact them through the info they have provided, per CRA rules they must keep this info current.)

Western Funding - $5,344 balance on reportss/Settled for less than balance/Waiting for update on credit reports to zero balance and updated status

Westlake Financial - $7,602 balance on credit reports/Settled for less than balance/Waiting for update on credit report to zero balance and updated status 

Bridgecrest - $19,457 balance on credit reports - will not settle at all and making $300 payments monthly but hoping to pay it off in full by end of year

 

That's all, I know its a lot to read smh this has been a big lesson learned and hoping to get this all behind me soon.

 

Thank you!

 


You need to have a small balance reporting on one of your open cards otherwise it costs you fico points, you also need 3 revolvers to maximize Fico at minimum. As for the paid off accounts still reporting all you can do is request a GW deletion and the faster you pay off the remaining ones that are updating monthly the faster your score can begin to recover as no further updates are done once the balance indicates the account paid off.

"If there's a lack of money in your life, understand that feeling worried, envious, jealous, disappointed, discouraged, doubtful or fearful about money can never bring more money to you, because those feelings come from a lack of gratitude for the money you have."

"Reactions are powerful creators because they contain every element needed to manifest—they're a combination of thought, belief, and feeling in action. Positive reactions create more positive things, and negative reactions create more negative things. If you can respond to negative situations calmly and lightly, instead of with emotional turbulence, what happens next in your life will be so much better."

- Rhonda Byrne

Message 2 of 11
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Re: I Need Advice on How to Clean my Credit Up for Possible FHA Mortgage Loan

Thank you so much for taking the time to reveiw my post and add your advice. I do have another question, do you have any advice on what revolver accounts I would benefit from? If credit card, any suggestions? I had a Credit One, Total Visa, and First Premier in the past and would really like to steer clear of them due to the high AF. I also saw Discover IT Secured but wasn't sure if they would let me in with my credit profile.  Also, with the balance that I should keep on one of my credit cards thats being reported, should this be monthly or a one time thing? 

Message 3 of 11
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Moderator

Re: I Need Advice on How to Clean my Credit Up for Possible FHA Mortgage Loan


@CreditHelp_123 wrote:

Thank you so much for taking the time to reveiw my post and add your advice. I do have another question, do you have any advice on what revolver accounts I would benefit from? If credit card, any suggestions? I had a Credit One, Total Visa, and First Premier in the past and would really like to steer clear of them due to the high AF. I also saw Discover IT Secured but wasn't sure if they would let me in with my credit profile.  Also, with the balance that I should keep on one of my credit cards thats being reported, should this be monthly or a one time thing? 


I would get the Open Sky secured, there is no credit check to open it and I would try the Discover IT secured also can see about any local CU that can help you with a rebuild. There are some national CUs as well NFCU if you can get in, DCU. At least one credit card needs to report a balance at all times its not a one time thing or it costs you Fico points, typically 8-30+ depending on your profile, the higher the score the more points you lose for all cards at 0. The balance to let report is no more than 9% of an individual cards CL.

"If there's a lack of money in your life, understand that feeling worried, envious, jealous, disappointed, discouraged, doubtful or fearful about money can never bring more money to you, because those feelings come from a lack of gratitude for the money you have."

"Reactions are powerful creators because they contain every element needed to manifest—they're a combination of thought, belief, and feeling in action. Positive reactions create more positive things, and negative reactions create more negative things. If you can respond to negative situations calmly and lightly, instead of with emotional turbulence, what happens next in your life will be so much better."

- Rhonda Byrne

Message 4 of 11
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Re: I Need Advice on How to Clean my Credit Up for Possible FHA Mortgage Loan

Thank you for all your help. Just opened a Discover IT Secured Card and was only a hard pull on my Experian, thank goodness! Also, if anyone sees this, I reached out to T-Mobile at the beginning of this week and was told by a supervisor that the two Enhanced Recovery accounts would be recalled with-in 3-5 business days. And just today I reached back out to T-Mobile again for an update after speaking to ERC this morning who confirmed that they didn't receive anything. After that I contacted T-Mobiles corporate office and was told the recall wasn't true at all and the accounts cannot be removed. Very upset but I know that I can't be mad about something preventable. 

Message 5 of 11
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Re: I Need Advice on How to Clean my Credit Up for Possible FHA Mortgage Loan

Hi @FireMedic1 I would really appreciate your advice if possible. Thank you!

 

 

Message 6 of 11
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Re: I Need Advice on How to Clean my Credit Up for Possible FHA Mortgage Loan

Update:

 

Collections:

Credit Collection Services - $0/Paid in Full/Org Cred: Comcast (will remove in the next 2-3 weeks due to employee error but was told they do not remove cable collections) Not removed yet

Enhanced Recovery Co - $0/Settled for less than balance/ Org Cred: T-Mobile (told by t-mobile that they would reach out in 3-5 business to recall account and have it removed but not sure if this is the truth, please let me know if anyone has had any luck with this before) - On report until May 2021 - EE for TU and Ex: Dec 2020 and Jan 2021

Enhanced Recovery Co - $0/Settled for less than balance/Org Cred: T-Mobile (again told the same thing as above and hoping this works out in my favor, ERC told me no PFD from the beginning until I found this forum and reached out to T-Mobile and asked for a recall on both accts just waiting and praying this happens)

State of MD CCU - $3,186/Not Paid/Org Cred: Prince Georges Comm College - Only reporting on Experian so far and don't want to pay since classed was supposed to be dropped, tried to argue it but school will not forgive balance. If I pay I'm hoping they will delete from Experian

 

Charge Offs:

Greendot Bank - $0 current balance on reports/Paid in Full/Orig Cred: Berkshire Bank - Charged off, Updated to Paid, Charge-Off - On credit report until 2024

Bank of Missouri - $0/Paid in Full/Orig Cred: Total Visa Card - Charged off, will not be removed, Status: Tramsferred to anoter lender, on report until 7/2022

Acceptance Now - $3,812 Balance - cannot get in touch with company to resolve debt, disputed but came back verified, will fall off April 2021, EE on TU and Ex: Dec 2020 and Jan 2021

Western Funding - $5,344 balance on reportss/Settled for less than balance/Waiting for update on credit reports to zero balance and updated status - On report until April 2022

Westlake Financial - $7,602 balance on credit reports/Settled for less than balance/Waiting for update on credit report to zero balance and updated status - On report until March 2021 - EE for TU: Sept or Oct 2020, Eq: Not sure, Ex: Not reporting

Bridgecrest - $19,457 balance on credit reports - will not settle at all and making $300 payments monthly but hoping to pay it off in full by end of year

 

 

Thank you!

Message 7 of 11
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Established Contributor

Re: I Need Advice on How to Clean my Credit Up for Possible FHA Mortgage Loan


@CreditHelp_123 wrote:

Update:

 

Collections:

Credit Collection Services - $0/Paid in Full/Org Cred: Comcast (will remove in the next 2-3 weeks due to employee error but was told they do not remove cable collections) Not removed yet

Enhanced Recovery Co - $0/Settled for less than balance/ Org Cred: T-Mobile (told by t-mobile that they would reach out in 3-5 business to recall account and have it removed but not sure if this is the truth, please let me know if anyone has had any luck with this before) - On report until May 2021 - EE for TU and Ex: Dec 2020 and Jan 2021

Enhanced Recovery Co - $0/Settled for less than balance/Org Cred: T-Mobile (again told the same thing as above and hoping this works out in my favor, ERC told me no PFD from the beginning until I found this forum and reached out to T-Mobile and asked for a recall on both accts just waiting and praying this happens)

State of MD CCU - $3,186/Not Paid/Org Cred: Prince Georges Comm College - Only reporting on Experian so far and don't want to pay since classed was supposed to be dropped, tried to argue it but school will not forgive balance. If I pay I'm hoping they will delete from Experian

 

Charge Offs:

Greendot Bank - $0 current balance on reports/Paid in Full/Orig Cred: Berkshire Bank - Charged off, Updated to Paid, Charge-Off - On credit report until 2024

Bank of Missouri - $0/Paid in Full/Orig Cred: Total Visa Card - Charged off, will not be removed, Status: Tramsferred to anoter lender, on report until 7/2022

Acceptance Now - $3,812 Balance - cannot get in touch with company to resolve debt, disputed but came back verified, will fall off April 2021, EE on TU and Ex: Dec 2020 and Jan 2021

Western Funding - $5,344 balance on reportss/Settled for less than balance/Waiting for update on credit reports to zero balance and updated status - On report until April 2022

Westlake Financial - $7,602 balance on credit reports/Settled for less than balance/Waiting for update on credit report to zero balance and updated status - On report until March 2021 - EE for TU: Sept or Oct 2020, Eq: Not sure, Ex: Not reporting

Bridgecrest - $19,457 balance on credit reports - will not settle at all and making $300 payments monthly but hoping to pay it off in full by end of year

 

 

Thank you!


Congrats! You have come a long way!

 

It looks like a lot drops off in the next year (EE or naturally), so you should start seeing improvement little by little!

 

Your hard work is going to be paying off soon!




Starting Score: 2•20 | EQ 550 | TU 498 | EX 505
Current Score: 5•20 | EQ [F8 605] [F9 671] [EQ5 641] [A5 647] [A8 602] [A9 657] [B5 662] [B8 605] [B9 678] [VS3 620] | TU [F8 572] [F9 555] [TU4 537] [A4 564] [A8 574] [A9 550] [B4 561] [B8 590] [B9 581] [VS3 598] | EX [F8 593] [F9 583] [EX2 614] [A2 612] [A8 607] [A9 579] [B2 623] [F3 627] [B8 605] [B9 600] [VS3 587]
Goal Score: 680


Take the myFICO Fitness Challenge

SO Starting Score: 2•20 | EQ 502 | TU 484 | EX 521
SO Current Score: 5•20 | EQ [F8 597] [F9 526] [EQ5 647] [A5 659] [A8 591] [A9 531] [B5 606] [B8 575] [B9 536] [VS3 615] | TU [F8 561] [F9 496] [TU4 553] [A4 562] [A8 542] [A9 502] [B4 530] [B8 551] [B9 519] [VS3 590] | EX [F8 605] [F9 539] [EX2 629] [A2 628] [A8 597] [A9 544] [B2 631] [F3 627] [B8 589] [B9 556] [VS3 613]
Goal Score: 680


Take the myFICO Fitness Challenge



Message 8 of 11
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Super Contributor

Re: I Need Advice on How to Clean my Credit Up for Possible FHA Mortgage Loan


@CreditHelp_123 wrote:

Update:

 

Collections:

Credit Collection Services - $0/Paid in Full/Org Cred: Comcast (will remove in the next 2-3 weeks due to employee error but was told they do not remove cable collections) Not removed yet  TV and Phone companies are brutal. They dont delete.

Enhanced Recovery Co - $0/Settled for less than balance/ Org Cred: T-Mobile (told by t-mobile that they would reach out in 3-5 business to recall account and have it removed but not sure if this is the truth, please let me know if anyone has had any luck with this before) - On report until May 2021 - EE for TU and Ex: Dec 2020 and Jan 2021 It may happen.But can you trust a CA?

Enhanced Recovery Co - $0/Settled for less than balance/Org Cred: T-Mobile (again told the same thing as above and hoping this works out in my favor, ERC told me no PFD from the beginning until I found this forum and reached out to T-Mobile and asked for a recall on both accts just waiting and praying this happens) Good Luck is about all I can say on this one.

State of MD CCU - $3,186/Not Paid/Org Cred: Prince Georges Comm College - Only reporting on Experian so far and don't want to pay since classed was supposed to be dropped, tried to argue it but school will not forgive balance. If I pay I'm hoping they will delete from Experian Were they dropped? Sipposed could go either way.

 

Charge Offs:

Greendot Bank - $0 current balance on reports/Paid in Full/Orig Cred: Berkshire Bank - Charged off, Updated to Paid, Charge-Off - On credit report until 2024

Bank of Missouri - $0/Paid in Full/Orig Cred: Total Visa Card - Charged off, will not be removed, Status: Tramsferred to anoter lender, on report until 7/2022

Acceptance Now - $3,812 Balance - cannot get in touch with company to resolve debt, disputed but came back verified, will fall off April 2021, EE on TU and Ex: Dec 2020 and Jan 2021 Google this company. Theres a contact is page where you fill out a bunch of info. Explain the situation.

Western Funding - $5,344 balance on reportss/Settled for less than balance/Waiting for update on credit reports to zero balance and updated status - On report until April 2022

Westlake Financial - $7,602 balance on credit reports/Settled for less than balance/Waiting for update on credit report to zero balance and updated status - On report until March 2021 - EE for TU: Sept or Oct 2020, Eq: Not sure, Ex: Not reporting

Bridgecrest - $19,457 balance on credit reports - will not settle at all and making $300 payments monthly but hoping to pay it off in full by end of year

 

 

Thank you!


Basically you've done all that you could thus far. Now its a waiting game for falls off and when the time comes you can EE these accounts off your reports. A couple may stick, hopefully they were telling the truth. So for EE:

TU - 6 months early
EX - 3 months early
EQ - 30 days early, but don’t do it. Tey'll screw it up.

 

That care of the baddies. What do you have now? Cards loans ect.

Creditor Name/Credit Line/Balances/Lates?

Open Installment loans?

Lets see if any tweaking needs to be done on the good saide. Great job though tackling the past. 2021 will be here in no time.





My posts are JMHO. My siggy is not to brag at all. Just sharing my experiences after learning here from rebuild to recovery after BK DC @ 540's. And to show fellow members what can be accomplished when you do it right and play the FICO Credit Game.
Message 9 of 11
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Re: I Need Advice on How to Clean my Credit Up for Possible FHA Mortgage Loan

Thank you so much for responding! Today, the collection account for Credit Collection Services was removed from Experian (decided to dispute it) and I gained 20 points on FICO8 and 14 points on my Experian Mortgage score. Just waiting for Transunion and Equifax to update. It feels really good when you get a lil credit score boost! 

Message 10 of 11
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