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Hello everyone...I once had a mid 600 credit score then I got a divorce now I’ll sitting in the 530’s across the board. Since then I’ve remarried and I’m planning to buy a house but my lender is saying I need a minimum 580 for the VA loan. So I’ve put this plan into action.
1.Opened Self Lender account for an Installment Loan
2. I’ve opened a NFCU, Cap 1, and Open Sky secured cards
3. I’ve open a Fingerhut Fresh Start account.
I plan to use each card to buy a pack of gum every month for the next 12 months and keep my utilization under 10%. So I hope I have a nice mix of credit and hoping the positive payments that I intend to make will outweigh all of the charge offs that I have.
Am I going in the right direction?
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 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.
@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?
@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?
@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.
@thornback wrote:
@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.
So should I contact the original creditors to PIF or settle even though the accounts are charged off?