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Established Member


So I just joined this wonderful forum last month and have already learned so much. I will share my journey to refinace our home. I applied last month and was approved by two lenders to refinace our home. Good news, right? Well, interest rate from both were 5.5%, with pretty hefty closing costs. Current rate on mortgage is 6.75%. Although definitely an improvement, I was pretty disappointed with the rate given the historical lows. Both lenders reported credit issues as the reason.


That prompted me to seek out this fourm(which I had done this a year ago). I pulled all three CR's and this is what I've got; Fico scores EQ-665, EQ 651, TU-681. Goal 720 Open accounts; Mortgage 195k-opened 1997-no lates Capital one visa-2400/2700 no lates BOA visa-950/1000 no lates Paypal950/1100 no lates Beneficial loan 14600/14900 no lates About 10 misc accoutns(old store credit cards , no balance and closed over last 5-7 years, no lates)


First thing I'm sure you notice is my high utilization- over 95% Collection accounts; 2dental bills with receivable recovery from 2008-one says paid, the other balance $114 Judgement-may 2005 is showing balance of $993, but was paid in full in 2005 Collection from above- may 2005 - showing paid in full Wells Fargo auto-2/2004-6/2010, showing 3 lates in 2010 paid off Santander car loan 5/2005-1/2011 showing one late 3/2010 paid off What I have done thus far. I know many of you will cringe at my first step, but bear with me, I can explain. I took out 17k from my profit sharing and paid all my balances on open cards to less than $100 each. I know this should be a last resort and is not typically recommended.


The loan I had with benefiicial was a sub prime loan of 17800 due to emergency opened in 2006. I pay $296 a month and in 6 years,it has only gone done by 3500.00. It is really putting a dent in my score due to high utilization and makes me nauseous each month i look at the interest charges (about $281) after speaking with several bankers (who called beneficial legal loan sharks) I decided to take this loan. Loan i got from profit sharing is interest free and I am paying $300 per month. I have also sent GW letters to Santamdar and Wells Fargo to remove late payments. I have sent a PTD letter to REceivable Recovery for dental bills. I disputed through CRA's the judgement as it is listed as pending. Although a month early, I asked it to be removed as obsolete.


Havent heard back from anyone yet, but it's only been two weeks. If anyone can think of anything else I should do, or advise or next steps, please let me know. I am crossing my fingers that I will get a big bump from large pay off of balances and some luck getting some items removed quickly before interest rayes go up.

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Frequent Contributor


From what I have learned 35% of your credit score is based upon your utilization, which you should get a good bump due to reducing your UTL to less than 9%.


It may take a couple months to boost your score but tackle one thing at a time... I also recommend using the FICO estimator on here...  You can play with what will boost your score the most.


Good Luck!!

Starting Score: 06/2010- EQ 464
01/2012-EQ 512
April Score: EQ 679 4/12TU- 677 EX- 699 (FAKO)
Current Score: 05/2012-EQ 691 4/12TU- 706 EX- 720(FAKO)
Goal Score: 700 by 05/2012- MADE IT!!!!

Take the FICO Fitness Challenge
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