Paying Charge offs - In the middle of mortgage process - please advise

[Anonymous]

Hello,

Thank you for having me on the forum, bear with me. I am trying to buy my first home. It's a pretty cheap place because I am low income and will be getting a chfa fha loan. It's new construction and my lender wants to run my credit again at the end of April to see where we stand.

My lender requires a credit score of 620 and I am at a 580 now. These are my charged off accounts.

First Premier - $600 - just paid

TD/Target - 400 - not yet paid

citi - $180 - not yet paid

i also have a charge off for a car loan around $1700 that I am making payments on monthly. I received a settlement for a car accident so I am prepared to pay off the smaller accounts. 

I was dumb and young (still am)

The positive accounts I have are Fingerhut, Discover, and OpenSky which are relatively new but utilization is very low and paid on time. I also opened a credit "builder" loan which made my score drop so I paid it immediately.

will I have any luck with first premier deleting my account now that it has been paid in full? I have the email but stuck on how to start asking - I don't even know my account number. They told me I have to send them a letter with my request after it's paid, which it now is.

I don't know how to proceed with Citi and Target. I hear they both don't do pay for delete. I am desperate to get approved for this loan because I don't have a backup plan if it falls through.

Thank you all for your expertise, I feel more confident I can do this when I read the forums.

[OmarGB9]

You shouldn't have paid the credit builder loan off like that. The reason for the score drop is that it was a new account and it was at full balance, but over time as you paid it down, the positive payment history along with crossing thresholds of under 60% I believe and then under 9% of the total balance would've yielded some point boosts. But what's done is done.

As for FP, it's possible they'll delete after payment, but not guaranteed by any means. It's pretty hard to get an OC to delete their reporting, even after payment in full.

I would recommend paying Citi and TD Bank/Target regardless of whether they PFD or not (which they probably won't, because again, they're the original creditor [OC], and OCs don't really do that) because most likely those accounts are updating monthly and suppressing your scores, plus the utilization hit from the charge off is also costing you points.. I'm honestly surprised your lender hasn't asked you to take care of those anyway, as mortgage lenders usually want all outstanding derogatory accounts to be taken care of prior to approval.

Good luck with the mortgage process!