GOAL:
- Refi mortgage 12-18 mo or less
- Improve debt-to-income ratio by getting a job with my actual on my W2 with a nice increase.
Hey guys. I was wondering if anyone would read over my stats, plan and let me know your opinion. I bought a home with an 805 score in ‘02. I have learned the hard way to 1) keep a reserve 2) only spend what I can pay off 3) keep my ego in check 🌻 at least somewhat.
I appreciate your input and your time 🌻
STATS
***********************************
FICO 5/21: EQ 619| TU 628| EX 614
——————————————————-
GOOD:
- 1 mortgage
- 3 open CC
——————————————————
GOAL:
5 CC,1 Mort, 1 long SSL, 1 short SSL
——————————————————
-My understanding is TU and EQ consider a file thin unless at least 6 open CL report.
-Increasing CLs will help other areas over time.
——————————————————-
DEROGS:
- 1 Collection; could drop 6/2021 TU - 3 Write-offs 3CB:
2 write-offs carry a balance.
USAA CC $12,584
Verizon $916
-1 Late mortgage 12 60 days EQ
Ocwen mortgage DoFD 1/2017
Ocwen merged with PHH.
The account transferred to PHH.
The origination date transferred.
The late payments did not.
——————————————————-
AAoA: 5y 8mo
AoOA: 10y 7mo
AoYA: 7mo
————————————-——————
INQUIRIES. EQ 2 | TU 1 | EX 3
Last 6 mo. EQ 0 | TU 0 | EX 0
Last 12 mo EQ 2 | TU 1 | EX 3
——————————————————-
REALITY WITH WO ACCOUNTS:
The balance is included in utilization
——————————————————-
UTILIZATION:
Open. Open+WO
CL. $4,500. $16,000
Used. 0 $13,500
Util. < or = 2%. 79%
My charged off USAA CC balance is included in the utilization. I have seen the Verizon balance included
SOLUTION ->total util 28.4% or less
- Add UA
- Add my own CLs
- Request CLIs
- Wait it out - 3y
——————————————————-
Disc 1k, Cap1 3k, Cap1 .5k =>$4.5k
——————————————————
✔️Saved $3,000 reserve
——————————————————-
BUILDING PLAN:
1 - maintain current payments
2 - maintain my CC <2% util AZEO
3 - become AU for utilization < 29%
4 - add SSL 36 months NFCU
5 - add NFCU secured if necessary
6 - once score good -add Chase CC
7 - add SSL 60 months NFCU
8 - consider CLI every 6 months
9 - let it age
CREDIT REPAIR PLAN:
✔️update personal information 3CB
2 - dispute inquiries
EQ - Partners Cr ver; CBNA
TU - Partners Cr ver
EX - Partners Cr ver
3 - dispute accounts
I have a challenge with disputing what I believe to be correct. I did the inquiries and they have no hit to CS after 10/2021. It is the WOs that lower my CS the most. I have reviewed 3CB reports and see no errors or omissions. I will check again by getting a list of the items required by the law (various acts) such as DoFD.
If you have any suggestions please let me know. I imagine getting copies of the laws would be helpful.
FCRA for CB and FDCPA. Will review the posts on rebuilding.
Sandy
Starting Score: 429
Thanks for the reply.
A DIY credit repair group suggests a process of sending letters to dispute items on your report. If you find a discrepancy or an omission, you have a "leg to stand on" to have the items removed. My understanding is that the process requires the CB and/or Creditor to remove items if the law is not followed. Still learning.
The inquiries are quite minor since they are so few and over 6mo old. Learning the game..
@SandyNC wrote:Thanks for the reply.
A DIY credit repair group suggests a process of sending letters to dispute items on your report. If you find a discrepancy or an omission, you have a "leg to stand on" to have the items removed. My understanding is that the process requires the CB and/or Creditor to remove items if the law is not followed. Still learning.
The inquiries are quite minor since they are so few and over 6mo old. Learning the game..
Yea I honestly wouldn't listen to those groups. Disputing valid info as mentioned above only hurts you, and even if there is incorrect information, creditors are only required to correct it, not delete it. Inquiries are unscoreable after 1 year, and fall off after 2 years.
@SandyNC wrote:Thanks for the reply.
A DIY credit repair group suggests a process of sending letters to dispute items on your report. If you find a discrepancy or an omission, you have a "leg to stand on" to have the items removed. My understanding is that the process requires the CB and/or Creditor to remove items if the law is not followed. Still learning.
The inquiries are quite minor since they are so few and over 6mo old. Learning the game..
Credit bureaus aren't obligated to remove items if there's an error. They're only obligated to update the information so it reflects correctly. Many times, disputing accurate information will result in harming your scores when updates are made/confirmed.
Disputing accurate information isn't a legitimate way to fix credit issues. Goodwill letters are your best bet if you want to fix accurate negative marks, although they're a bit of a long shot.
Thank you. Best wishes in your trek for a home.
Ssndy
@SandyNC wrote:GOAL:
- Refi mortgage 12-18 mo or less
STATS
***********************************
FICO 5/21: EQ 619| TU 628| EX 614
These are your mortgage scores, right? If so, do you know what your TU & EQ FICO 9 scores are? I ask because Navy Fed uses the TU FICO 9 score in determining approvals for CC applications and the EQ FICO 9 score to determine approvals for the secured nRewards card graduation.
——————————————————-
GOOD:
- 1 mortgage
- 3 open CC
——————————————————
GOAL:
5 CC,1 Mort, 1 long SSL, 1 short SSL
This goal appears to me that you want to grow from a thin credit file to a thick credit file. FYI, the lower your percentage of accounts with balances (AWB), the better your mortgage scores will be. In your case, it's better to pad your credit file with revolving accounts (like CCs), not installment loans. While you can work it so that you have many revolver accounts reporting a $0 balance each month, every open installment loan will have a balance. Therefore, to get higher mortgage scores, for each installment loan, one also needs a reasonable number of revolving accounts where all but one reports a $0 balance each month (the AZEO method). You already have your mortgage.
Opening any new accounts will lower your mortgage scores, and you won't regain the last of those lost points until your youngest account reaches 18 months. So, if you're going to open new accounts, you need to do it soon.
DEROGS:
- 1 Collection; could drop 6/2021 TU
Could drop next month? Is that due to aging off your CR, or a PFD, or the 6 month EE on your TU CR? It would definitely be better without a CA on your CRs when you apply for a Navy Fed CC.
————————————-——————
INQUIRIES. EQ 2 | TU 1 | EX 3
Last 6 mo. EQ 0 | TU 0 | EX 0
Last 12 mo EQ 2 | TU 1 | EX 3
——————————————————-
CREDIT REPAIR PLAN:
✔️update personal information 3CB
2 - dispute inquiries
EQ - Partners Cr ver; CBNA
TU - Partners Cr ver
EX - Partners Cr ver
3 - dispute accounts
Ignore the inquiries. You have few inquiries, so you didn't lose many points in the first place. The inquiry that matches a newly opened account should be reduced to a 0 to 2 point loss when the new account is reported. You'll gain those lost points back within about 3 months (or longer if you opened multiple new accounts). After 8 or 9 months, you'll have already gained back many of the points you lost from the other inquiries that didn't result in new accounts. (I say 8 or 9 months, because you can expect it to take at least 30 days from now to get inquiries removed using certified mail.)
I have reviewed 3CB reports and see no errors or omissions. I will check again by getting a list of the items required by the law (various acts) such as DoFD.
If you have any suggestions please let me know.
Be careful in disputing accounts on your CRs. You can open a whole can of worms, especially with your EQ CR. If you do open any disputes, make sure they are completely resolved before you apply for your mortgage. If disputes aren't resolved, you can expect delays in your mortgage application process.
USMC_Winger, Thank you so much! I took notes. Will be helpful.
Regarding NFCU using FICO9:
My CSs were FICO8. Checked FICO9 - EQ 638 vs FICO8 619.
Regarding: "1 Collection; could drop 6/2021 TU"
I downloaded my annual credit report. The report stated: “Estimated month and year this item will be removed: 06/2021”.
I thought I had to wait until 01/2022. That will be a nice surprise if it does fall off next month.
Congrats on your quick productive journey toward scores for your mortgage / life.
@SandyNC wrote:USMC_Winger, Thank you so much! I took notes. Will be helpful.
Regarding NFCU using FICO9:
My CSs were FICO8. Checked FICO9 - EQ 638 vs FICO8 619.
Regarding: "1 Collection; could drop 6/2021 TU"
I downloaded my annual credit report. The report stated: “Estimated month and year this item will be removed: 06/2021”.
I thought I had to wait until 01/2022. That will be a nice surprise if it does fall off next month.
This sounds like the early exclusion of an adverse account on TU. I would wait until the collection falls off of the CR before applying for a Navy Fed CC. If it isn't removed in June, I'd request early exclusion with TU. When the collection is removed, you should see a boost in your score.
If it's still a low score, you may need to apply for a Navy Fed secured nRewards card. Navy Fed uses different algorithms to evaluate whether to graduate a secured card and whether to approve an unsecured card, making it more difficult to graduate the nRewards card than to be approved for an unsecured card.
If I were you, after the collection is removed from your CR, I'd make sure my CR wasn't locked or frozen and then apply for an unsecured Navy Fed CC. If declined, I'd apply for the secured nRewards card. No guarantees, but with responsible use of all credit accounts, the secured nRewards card can graduate in 6 to 7 months with a $2,000 CL, as long as your annual income supports it.
It may be a while before you can apply for the Chase card, so consider applying for a second Navy Fed CC. For those of us who start with a Navy Fed secured nRewards card, our second Navy Fed CC is the whopper: it usually starts with a high(ish) CL and grows higher and faster than our other CCs. You can apply for a second Navy Fed CC after 91 days after approval of your first Navy Fed CC AND after three full, 25-day billing cycles (91/3 rule). But beware of Chase's 5/24 rule, where CC applications are automatically declined if you already have 5 new CC in the last 24 months.
Congrats on your quick productive journey toward scores for your mortgage / life.
Thanks! And good luck to you!