Need Advise for quick repair.

[mjf9730]

Im trying to get a home loan before May.  Wells fargo said they could do a VA loan with a 600 middle socre.  Right now Im at a 581, 585, and 640.  I've got two medical collections, an old credit card thats in collections, and a government overpayment in the bad.  Ive got a car loan and a secured card through wells fargo that show almost a years worth of perfect payments.   I can pay the medical collections, but ive been told that they wont remove them, just update the account as paid, so im not sure if thats going to help any.  I could also pay off the old CC but i guess i would need to get a PFD letter from them first? 

I guess what im trying to figure out is would paying this stuff off now possibly bring my scores up in time to get the VA loan?   I also need to purchase a new car.  I've been working with a dealarship that said they can look at my scores and limit the amount of inqueries to try and keep my score up.  Would adding that new line of credit bring my score up?   Wells Fargo also said they could to a $3000 secured loan, which i could handle, but im not sure if that would bring it up enough either.  Any advise?

[jadeite788]

This is what I would do, I would PFD the credit card first to see if they are good with that.   The medical collections, if they won't do a PFD, then the last would be a GW.  I would get a second secured credit card.  I was told lenders like to see two revolving credit lines, that is why I got it.  but thats my .02

[guiness56]

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@mjf9730 wrote:

Im trying to get a home loan before May.  Wells fargo said they could do a VA loan with a 600 middle socre.  Right now Im at a 581, 585, and 640.  I've got two medical collections, an old credit card thats in collections, and a government overpayment in the bad.  Ive got a car loan and a secured card through wells fargo that show almost a years worth of perfect payments.   I can pay the medical collections, but ive been told that they wont remove them, just update the account as paid, so im not sure if thats going to help any.  I could also pay off the old CC but i guess i would need to get a PFD letter from them first? 

I guess what im trying to figure out is would paying this stuff off now possibly bring my scores up in time to get the VA loan?   I also need to purchase a new car.  I've been working with a dealarship that said they can look at my scores and limit the amount of inqueries to try and keep my score up.  Would adding that new line of credit bring my score up?   Wells Fargo also said they could to a $3000 secured loan, which i could handle, but im not sure if that would bring it up enough either.  Any advise?

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Is the OC, CA or both reporting the CC collection?

The government overpayment won't go away.

[mjf9730]

The CC is still with the OC but listed as a charge off. I disputed the gov overpayment due to SOL and got it off of 2 of 3 credit reports. Experience won't budge for some reason.

[guiness56]

Paying off/down the OC CO will help somewhat.  The CO will still be there though.  Have you tried working with the OC on a PFD or see if they will remove negative annotations?

[mjf9730]

I haven't done anything yet. I can pay in full, I just need it off my reports. Guess I should send a PFD? If so, do I need to send it certified mail?

[guiness56]

If it is an OC account, closed or not, it counts in your AAoA.  It could hurt to have it removed. 

No, you, not for the OC and not for a PFD.

[Lasardo]

Even though a second card would likely boost your scores, I doubt it would give the boost you need before May, AND new credit before buying is never advisable, I would hold off until after you buy but talk to your LO. 

I would focus in on  your medical accounts, do a PFD and do it in writing, of course, the NO over the phone is likely a yes by mail. If you get a denial..,,..GW, GW, GW 

Additionally, I got a lot of NO's but when I paid some of my medical accounts, they were deleted.  If they are inexpensive it's worth a shot. 

Another great option to give you the boost you need is to become an authorized user on someone's account that has great credit.  I gained 45 points this way.....YMMV 

good luck 

[mjf9730]

Lasardo,

        Do you know if being added to someones account will bring their score down at all?

[rckstrscott]

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@mjf9730 wrote:

Lasardo,

        Do you know if being added to someones account will bring their score down at all?

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I would advise against Lasardo on this one... he is right.. if you select the right AU, it will help your score alot..

problem is, and I know cause I have a wells fargo mortgage, is the underwriter will require you to remove the AU account before rescoring you.. so any gains you get will be lost when applying for a mortgage.

-scott