Welcome @Anonymous
Yes in a way. It will help your scores. Just hope the lender ignores all the new accounts. They usually like no new accounts for 6-12 months before applying for a mortgage. Either way. Congrats. Hope all past baddies are paid too.
You're on the right track as far as reestablishing a positive credit history - but what about your existing history? Any negative/derogatory accounts, late pays, etc.?
Welcome to the forums!
I'll echo the above. You might want to address any derogatory you have; delinquency, charge off, collection, etc. If they are updating monthly, it'll keep your scores suppressed.
@Anonymous wrote:I have about 7 or 8 charge offs from 2 years ago and 2 collection accounts. One of the collections should be deleted in the next 30 days.
Are the chargeoffs paid?
@Anonymous wrote:
@thornback wrote:
@Anonymous wrote:I have about 7 or 8 charge offs from 2 years ago and 2 collection accounts. One of the collections should be deleted in the next 30 days.
Are the chargeoffs paid?
No none of them are paid. My lender said they would be ok because they are older than 2 years. Was my lender lying or what?
Well, most mtg lenders require outstanding debts be paid.
Your scores will have a very difficult time recovering with chargeoffs that have balances. Creditors may continue to update the accounts with new negative chargeoff notations (either monthly or sporadically) which will keep the derogatory from aging and your scores suppressed.
You're also leaving yourself open to possible lawsuits and/or further collection attempts by a collection agency resulting in a new collection account being added to your reports in addition to the original chargeoff.
Let me also add - the outstanding balances are factoring into your overall util and unpaid chargeoffs are treated as maxed out. Paying them (either in full or settled) would be hugely beneficial for all these reasons.