@Anonymous wrote:Hi all, crazy credit lady is here again.
I have been working on getting my credit scores going in the right direction since I last posted. I am now coming to a point where I hope to make some big decision and purchases and was needing some feedback from ya'll. I did have a hiccup on August/Sept of 2019 which resulted in several 30 day lates on a few of my CC, but we will get to that.
Facts:
Credit score on 8/28/2019
Experian 541
Transunion 586
Equifax 609
Credit score on 6/8/2020
Experian 670 - Auto 679 - Mortgage 659
Transunion 686 -Auto 699 - Mortgage 647
Equifax 690 - Auto 700 - Mortgage 621
CC
Comenity Bank C&B - Credit limit $250 - $0 balance - 1 30 day late 8/19
Comenity bank Torrid - Credit limit $600 - $0 balance - 1 30 day late 8/19
Sears - Credit limit $980 - $0 balance - 1 30 day late 9/19
Fingerhut - Credit limit $3000 - $0 balance - 1 30 day late 8/19
American Express - Credit limit $4500 - $1548 balance - No late payments
Capital One - Credit limit $1500 - $0 balance - No late payments
Credit union visa - Credit limit $500 - $0 balance - No late payments
Belk - CLOSED - Paid in full - No late payments
QVC - CLOSED - Paid in full - 120 day late payment 17/18
Other loans
US EDU balance $29,395
Collections - medical bill - $189
I do have 3 other closed accounts, 2 for vehicles and 1 personal loan, all 3 were paid in full, with no late payments. I currently don't have a mortgage payment, or car payment.
The plan is I am going to pay off the American Express and collection amount by the end of June. But I am quickly coming to the point where I need to purchase another car and a home. My current situation is I live in a older mobile home (with major issues) and I own the mobile home and land free and clear. No mortgages or liens against it. I had originally been dreaming of getting into my dream home that is $350,000. But I sat down the other day and was looking at my retirement options, and realized that I needed to make a different plan. I am planning on retiring in 15 years and when researching new mobile home loans, most are 15 year loans. I feel that is the better option to get me into something better and still work it to where I am debt free by the time I retire. I am hoping to makes these purchases in the next few months, (by September). So, my questions are.
1. I thought I had read somewhere that when you are making big purchases such a house and a car, it is better to do them as close together as possible, that way it only dings your credit once. Is that true?
2. If it is true, does it matter which loan I attempt to get first, car or home?
3. Since it has been 8/9 months since my hiccup and the 30 days late on 4 of my CC is it too soon to ask for a GW and see if I can them removed?
4. What about the QVC, it has been closed since early 2018, and I paid it off in full, but I did have the 120 days late, is it worth it? What are the odds they will remove them from a closed account?
5. So IF, I get a new car loan, and a home loan in the range I am wanting to pay, I will still have the majority of one check a month, free. Do I pay extra on the car and home loan to get them paid off faster? Or do I put it somewhere to work towards my retirement?
Thanks for reading my long post, any suggestions, tips, hints or comments would be greatly appreciated.
Crazy credit lady
With any type of mortgage lending. UW's dont want to see any apps before approvals for a loan. So home first then car. The 30 day lates you'll have to go the GW letter route. Success rate is very low next to none. But it doesnt hurt to try. You can place in your letters your seeking home ownership and accept full responsibility you had late payments.
On a side note. This why its best to have a savings account with it at least 6 months of survival on paying bills in case of emergencies and you dont have to rely on CC's to get thru tough times. Good Luck!
@Anonymous wrote:
So, ok, on to my questions, finally.
1. I am of course looking into obtaining a loan for a mobile home and also a new car. I thought I had read somewhere that when you are making big purchases, it is better to do them as close together as possible, that way it only impacts your credit score once. Is that true? all inqs that are coded correctly for auto and home loans within a 14 day period count as one for fico scoring purposes
2. If it is true, does it matter which loan I apply for first. Home or car? Home first always and you dont want any new credit at least 6 months in advance of the home credit pull
3. Since it has been about 8 or 9 months since my latest hiccup, what do you think my chances are on asking for GW and having them removed? Really no way to tell just go ahead and send the GW request,
4. What about QVC, is it worth it to attempt to ask for a GW? Cause it was like Aug, Sept, Oct, Nov, Dec 2017 and Jan 2018.
5. So, if, if, if I am able to get my car loan and home loan for the amount I have set in my head or as close to it as I can. I would still have a good portion of one check left over. My internal debate is which is going to benefit me in the long run. Use the extra money to pay off the car and home loan sooner, or tuck it into my savings for retirement.
Thanks so much for taking the time to read my post and all suggestions, tips or comments would be greatly appreciated.
Crazycreditlady
Medical collections are some of the easiest to get removed from your CRs, here are the steps that you should follow to address them:
1. Call the OC and see if insurance can be billed, (or-rebilled), collections ultimately paid by insurance get removed per new rules that came from CRAs settlement with 22 state AGs. If not then
2. see if you qualify for Charity Care, if not then
3. ask that they recall the collection in exchange for full payment
4. Send the reporting CA a PFD offer
5. Google the HIPAA Process and contact its creator for help, this process cannot be discussed in any forum of myFico.
