I am trying to buy a home but need a Few more points any help welcomed

[Anonymous]

I recently completed my Milestone in saving up enough money to purchase a home. I tried to get an approval but was told that they used Fico 2 and got denied due to my score being 568 and I need a minimum of 580 so I have my credit reports and going to ask the credit gods of MyFico Forums for help here we go. 

EX: 

---CC's

--CO

- 0$ balance

-500$ limit

-Never late

--CO

- 119$ balance

- 700$ CL

-Opened in 2015

- Last late in Dec 2017 

    I have been late on this account 13 times with 5 times being more than 120 days late

--Credit One Bank 

8$ balance

-500$ CL

-Never late

Opened in 06/19

Chase (AU wife's account)

-3600$ CL

-never late 

0$ balance

Jared CC

opened 05/2020

0 bal

400$ CL

Chase CC (AU)

CL 6500

no longer reporting

reported from Apr 2014-Dec 2015

State Farm Bank (AU)

No longer Reporting

1000 CL

Reported from Jan 2017 - Nov 2019

Dell FS

552 Bal

1000 CL

Never late

Opened 02/20

Fingerhut 

Closed

late july 2016-Nov 2016

SL

Nelnet

acct 1: 1017$ balance deferred payments opened 02/2017

acct 2 3991$ bal, Deferred, late payment Nov & dec 2016 (didnt know i was suppose to pay as I was in school) opened 09/13

acct 3: 2404$ bal, same late as above, opened 09/13

acct 4: 3526$ bal same late as above opened 02/15

acct 5: 363$ bal same late as above opened 05/2015

acct 6 1547$ bal same late as above opened 09/15

Colletions:

MIdland Funding

bal 688

on record until 2023

!!!PTD was approved and waiting for drop off of CR!!!

National Credit Adjusters

1298 bal

on record till Feb 2023

National Credit Adjusters

1638 Bal

On record until mar 2023

National Credit Systems

3441 bal

on record until jun 2025

(Was an apartment complex that cheated me out on this balance long story but fraudulently charged me for fees and repairs that happened after I moved out)

First Premier Bank

635$ balance

on record until feb 2024

!!!Dont know if i Should settle this I know First premier does not remove from CR but it is showing in my balances!!!

Credit Inquiries

17 Total

earliest removal will be dec 2020

latest removal will be aug 2022

[AllZero]

@Anonymous  Zero out the reported balance on your Credit One card. Seek AZEO, All Zero Except One card reporting a balance.

Optimized is individual 1-29% utilization, aggregate 1-9% utilization. Mortgage scores like AZEO. However, that may or may not get you the MMS you require.

I would recommend you address those charge offs or collections. Any derogatory or delinquency will suppress your scores.

[Anonymous]

@AllZero National Credit Adjusters won't do PFD but if I settle the account be better for my scores or would PIF be more beneficial? I was thinking of just leaving it alone until it falls off since I cannot do a PFD. 

[AllZero]

@Anonymous  PFD Pay For Delete would be optimal. However, it's best to consult with a mortgage lender to see what they require in regards to your collections. If you are waiting for "baddies" to drop off, you may need to adjust your time frame for mortgage application.

[Anonymous]

Hi there! So listen, please take what I'm getting ready to say with love bc I don't mean it negatively at all. I personally don't think you'll be mortgage ready any time soon. With the presence of those collections and the fact that they have balances, I can all but assure you that you'll run into problems getting past the pre-qualification stage. Then there's the issues of your scores being low and they're going likely stay on the lower end until the collections are removed. Also, while loan officers may say that they can get you a mortgage with a 580, I'd advise that you not hitch your wagon to that horse. These days most lenders are requiring a minimum of a 640, but the mortgage wizards over in the mortgage forum can help you with that part.

 You'll need to save up as much money as you can to pay the collections off (although I'm more prone to working directly with the original creditors bc it's easier to pay them and move on). I know you mentioned that one of the agencies won't do a PFD, so again try to work with the OC. 

Lastly, with the financial uncertainty being what it is right now, creditors, lenders, banks, etc. have all tighten their respective purse strings. Mortgages are not easily attained as they once were. You surely could find a lender that'll work with you and where you are currently but it'll more than likely end up being a "pay to play" situation and you'll be on the losing end. The best you can do right now is build up positive tradelines (pay on time at a minimum of a year), do NOT apply for any additional credit, and contact the original creditors and see if they'll work with you on a repayment  plan.

 Sorry that I couldn't give you better news but the value of this forum is being honest about what's what and helping each other through! Hopefully this'll help some! 🙃

[Anonymous]

I am also in the same boat and agree, you're not gonna see much increase until you pay off all your debt. My score got a huge increase once I paid off all collections but it's been three months and I'm still 12-20 points away from what I need, so like I've been told on here, pay those off because it takes time. 

[Anonymous]

To be painfully honest, the best thing you can do is take that money and start saving it for a down payment on your house and you’re just gonna have to wait till all that stuff drops off before you can get a house.

Either that or be prepared to pay all that money and then to have a low score and get a super high interest-rate on terrible terms.

The best thing you can do right now is have five no annual fee credit cards and establish positive payment history until all that drops off. By the time that happens, you should have a nice down payment and emergency fund prepared and your scores will be in place as long as you make all payments on time until then.

[Anonymous]

But I’d work on the last two and see if I can get those removed that way it reduces your timeframe.

Edit: @Anonymous you know what? That's exactly what I would do. I would start with the one that falls off last, the last one. I would work on that until I got it removed and then the one before that and continue the process and as time goes by, some will fall off and then you'll meet in the middle and when you do, you'll have a great score and a great down payment and emergency fund. 

[FireMedic1]

---

@Anonymous wrote:

I recently completed my Milestone in saving up enough money to purchase a home. I tried to get an approval but was told that they used Fico 2 and got denied due to my score being 568 and I need a minimum of 580 so I have my credit reports and going to ask the credit gods of MyFico Forums for help here we go. 

EX: 

---CC's

--CO

- 0$ balance

-500$ limit

-Never late

--CO

- 119$ balance

- 700$ CL

-Opened in 2015

- Last late in Dec 2017 

    I have been late on this account 13 times with 5 times being more than 120 days late

This is what is hurting the most being only 2 yrs old.

--Credit One Bank 

8$ balance

-500$ CL

-Never late

Opened in 06/19

Chase (AU wife's account)

-3600$ CL

-never late 

0$ balance

Jared CC

opened 05/2020

0 bal

400$ CL

Chase CC (AU)

CL 6500

no longer reporting

reported from Apr 2014-Dec 2015

State Farm Bank (AU)

No longer Reporting

1000 CL

Reported from Jan 2017 - Nov 2019

Dell FS

552 Bal

1000 CL

Never late

Opened 02/20

Fingerhut 

Closed

late july 2016-Nov 2016

SL

Nelnet

acct 1: 1017$ balance deferred payments opened 02/2017

acct 2 3991$ bal, Deferred, late payment Nov & dec 2016 (didnt know i was suppose to pay as I was in school) opened 09/13

acct 3: 2404$ bal, same late as above, opened 09/13

acct 4: 3526$ bal same late as above opened 02/15

acct 5: 363$ bal same late as above opened 05/2015

acct 6 1547$ bal same late as above opened 09/15

Colletions:

MIdland Funding

bal 688

on record until 2023

!!!PTD was approved and waiting for drop off of CR!!!

National Credit Adjusters

1298 bal

on record till Feb 2023

National Credit Adjusters

1638 Bal

On record until mar 2023

National Credit Systems

3441 bal

on record until jun 2025

(Was an apartment complex that cheated me out on this balance long story but fraudulently charged me for fees and repairs that happened after I moved out)

First Premier Bank

635$ balance

on record until feb 2024

!!!Dont know if i Should settle this I know First premier does not remove from CR but it is showing in my balances!!!

Credit Inquiries

17 Total

earliest removal will be dec 2020

latest removal will be aug 2022

---

Besides the late. All debts have to be paid before any mortgage company will approve you for a loan. There's no point gains from paying off a CA. Time will help. Take what you have saved and pay all the debts to set yourself up in the near future for the next app.

@AllZeroCO=Capital One or Credit One. @Anonymous Which is it?

[AllZero]

@FireMedic1. Credit One with full name spelling as originally posted by @Anonymous to differentiate from CO.