Need score to buy a house.

[WIscorewatcher]

I am trying to get my life back on track. I have a BK in the past and I have collections since because of job issues. Both my wife and I have decent jobs now and make about 90k combined. We are trying to get our scores in good enough shape to be able to buy a house. I have searched a little on the internet and this website on how best to accomplish this. Our biggest issues are medical bills currently paying $225/mo to pay off.  We did open a couple of secured personal loans (for credit building) and I have a car loan for about 3 yrs now. I was also able to get a CC (unsecured even) from my credit union (they have been the best at helping us when no one wanted to).  I have negative information within the last 6 mos because the 10k in doctor's bills really hurt us last year. Any ideas on what might help us improve our scores in the shortest amount of time? I currently have a 574 according to this site (just dropped 4 points because I charged $100 on the new CC to have a balance to show good payment history). Should I send a GW letter to the collection agency for the bills that now show as paid? I still have some med bills that are not paid as of yet but like I said before I am paying $225/mo to get it straightened out. Please tell me you thoughts and please remember that I'm a newb so I may not know all the acronyms.    : )

[Booner72]

Hi and welcome.  Print the acronyms out as a reference and you'll learn the language fast.  This forum will be your new best friend.

If I were you, I'd be working with that CA to come up with a WRITTEN AGREEMENT that they DELETE ALL ACCOUNTS as soon as they are PIF'd.

If they give you crap, tell them, then why should I even pay you at all?  (Though you are risking a judgment so you have to do this carefully, sweet will help, nasty will get you nowhere).

This is your best bet.

You could also google "HIPAA MEDICAL COLLECTIONS" and learn how to get rid of them that way.  You end up paying the Original Creditor (OC) not the CA.  BC you have such a high amount, it might be worth your efforts to give that a gander.

You should only let your cc report a balance 1-9% of it's limit.  You should have 2, IMO, and let one report zero, the other a tiny balance.

Sounds like you guys are on the right road!  It also might help your PFD efforts with the CA if you can come up with a lump sum instead of the 250 a month.  I'm sure they'd enjoy a nice check.  You also, if you are going this route, might do better close to the end of the month as they need to get their numbers in to get their bonuses.

Congratulations on your first post!  May it be one of many that help you and your wife make your homeowner dreams come true.

[coachb123]

Is there any truth to doing PFD at the end of the month being better?

[Booner72]

Hi, Coach,  The truth is only the posts I've read about that.  Speculation on my part.  But it sounds like it might be worth a shot, esp if you have been getting nowhere.