Rebuilding Need Advice

Anonymous · ‎08-09-2020

Help needed. Rebuilding my credit from a few derogs. Have a First Progress secured card opened since last june. Recently opened an Open Sky in May with $400 limit. Desperately trying to get my scores up to 620 or higher to qualify for a conventional loan been getting too much mixed information on what is needed to qualify. Will opening another secured card now help my score or no or should I request a line increase with Open Sky and add to my limit? I have one last Capital one account thats in process of updating to paid in full. original limit was $750 but with poor choices ended up being $2035 so the utilization is tearing me apart. Nonetheless, I settled it for $1250. Utilization on it was super high but should decrease when experian finally updates it. Will that pay off also help give me a boost? Or shoiuld I just be added to two of my aunts authorized user accounts that are in excellent standing to give me the boost I need. My two cards, I keep open sky at zero and first progress at $5 a month.

Current mortgage scores EQ- 554, Trans 588, EX 568

Any advice helps!

AllZero · ‎08-09-2020

@Anonymous What is your time frame for applying for a mortgage?

Was the Capital One a charge off or collection? It may take a cycle or two for your credit reports to update the pay off. You should see a score improvement once your credit report updates.

Depending on the lender, some may not want to see new accounts or AU accounts. You may need to consult with a mortgage lender.

No need to add to the secured deposit on your Open Sky unless you need the higher credit line to charge over $400.

Keep your reported utilization optimized. Practice AZEO. All Zero Except One card reporting a small balance. e.g. $5-$10

Optimized is

Individual 1-29%

Aggregate 1-9%

What other delinquency or derogatory do you have? You many want to address those too.

Anonymous · ‎08-09-2020

@AllZero wrote:
@Anonymous What is your time frame for applying for a mortgage?

Was the Capital One a charge off or collection? It may take a cycle or two for your credit reports to update the pay off. You should see a score improvement once your credit report updates.

Depending on the lender, some may not want to see new accounts or AU accounts. You may need to consult with a mortgage lender.

No need to add to the secured deposit on your Open Sky unless you need the higher credit line to charge over $400.

Keep your reported utilization optimized. Practice AZEO. All Zero Except One card reporting a small balance. e.g. $5-$10
Optimized is
Individual 1-29%
Aggregate 1-9%

What other delinquency or derogatory do you have? You many want to address those too.

Thank you so much. No, I dont need the extra line increase as Ive conditioned myself to not use that card at all so it stays at zero. DOnt want to take any chances. The cap one was a charge off. Ive been fighting with Experian to update the balance even with sending in proof of satisfaction so hopefully within the next two weeks it updates.

I have a paid collection from Franklin Collection Serv. Hit my report back in March didnt know but paid immediately been fighting for a deletion but no luck. Original creditor is At&t. Now I check my report daily to make sure no slip ups.

I have a discharged chap 7 from 2016. only like 2 accounts from the Chap 7 are still on Equifax and Experian - they arent reporting just say included in bankruptcy. Had an auto loan with Prestige Financial- went bad last June. Settled in full in June 2020. they wont delete.

Never late on First Progress, Never Late on Open SKy.

Student loan balance $308K currently deferred never late but have already a quote for IBR at $240 a month for when I do try for mortgage. I can qualify for Loan forgiveness due to public service job but not sure if i already have to make those payments before applying or can just get on the plan and it not count towards my DTI.

No other debt I have. So far have about 5% for downpayment. Wanted to make a purchase In October.

AllZero · ‎08-09-2020

I would recommend writing Good Will letters to Franklin Collection Serv., AT&T, Prestige Financial. Try to get your report as clean as possible.

The Saturation Technique: Best GW adjustment odds.

Anonymous · ‎08-09-2020

@Anonymous wrote:
@AllZero wrote:
@Anonymous What is your time frame for applying for a mortgage?

Was the Capital One a charge off or collection? It may take a cycle or two for your credit reports to update the pay off. You should see a score improvement once your credit report updates.

Depending on the lender, some may not want to see new accounts or AU accounts. You may need to consult with a mortgage lender.

No need to add to the secured deposit on your Open Sky unless you need the higher credit line to charge over $400.

Keep your reported utilization optimized. Practice AZEO. All Zero Except One card reporting a small balance. e.g. $5-$10
Optimized is
Individual 1-29%
Aggregate 1-9%

What other delinquency or derogatory do you have? You many want to address those too.
Thank you so much. No, I dont need the extra line increase as Ive conditioned myself to not use that card at all so it stays at zero. DOnt want to take any chances. The cap one was a charge off. Ive been fighting with Experian to update the balance even with sending in proof of satisfaction so hopefully within the next two weeks it updates.

I have a paid collection from Franklin Collection Serv. Hit my report back in March didnt know but paid immediately been fighting for a deletion but no luck. Original creditor is At&t. Now I check my report daily to make sure no slip ups.

I have a discharged chap 7 from 2016. only like 2 accounts from the Chap 7 are still on Equifax and Experian - they arent reporting just say included in bankruptcy. Had an auto loan with Prestige Financial- went bad last June. Settled in full in June 2020. they wont delete.

Never late on First Progress, Never Late on Open SKy.

Student loan balance $308K currently deferred never late but have already a quote for IBR at $240 a month for when I do try for mortgage. I can qualify for Loan forgiveness due to public service job but not sure if i already have to make those payments before applying or can just get on the plan and it not count towards my DTI.

No other debt I have. So far have about 5% for downpayment. Wanted to make a purchase In October.

I would definitely check with mortgage lenders about the SL debt. They often do their own calculation for DTI. Generally they use 1% of the balance (for $308k would be $3080/mo) as your monthly payment regardless of what your IBR or standard repayment amount is, as you have to recertify annually for IBR, so that could well change the payment amount. I have heard of some mortgage lenders using 0.5% of the SL balance (for $308k would lower that to $1540/mo) for the payment. I recently heard someone go for a low-income mortgage where they accepted the IBR value as the payment amount (for that individual it was $0/mo). So if you can qualify for a low-income mortgage, that may be an option.

I am not saying this to be harsh, I just understand, as between me and my SO, we have over 200k in SLs, which has pushed homeownership further away from us, especially via a traditional, conventional mortgage. It doesn't help that I have unusal income.

Good luck!

Anonymous · ‎08-12-2020

Working on those. Cap one finally updated on experian today! Got a 46 point increase from that paid off charge off !!! Pushed mortgage fico 2 to 594 . Good progress I must say! Hopefully with my currency card reporting this month and one last final settlement that is updated I'll get more added to get me to 620!

Anonymous · ‎08-12-2020

TYPO: current card reporting this month...