Rebuilding credit

[Anonymous]

I have spent the last 3 months rebuilding my credit. I've started by paying off all the collections on my account (there were about 9). I had consistent late pays on my auto loan for approximately 24 months but it has reported current for 3 months. I have 2 small credit cards a

First Access card -0/300

Firsr Premier card - 400/400

my scores are in my signature, how likely would it be to get the mortgage mid score up to 581 in 2 months? 

[FireMedic1]

Without more details. Unlikely. Get that maxed out FP paid down too.

"consistent late pays on my auto loan for approximately 24 months"

This isnt going to help really. Nor 9 collections.

I'm sure you meant 581?

"mortgage mid score up to 281 in 2 months"

[Anonymous]

Yep definitely a typo.... I apologize it was late LOL..... 

the collections are all well over 2 years old and listed as paid (I know that doesn't help the score)....

I'm hoping the improved payment history on the auto loan will start working the score back up slowly....

the FP cc will be paid in a week.... 

what more details would I need to add? 
this is my first time posting on here so I'm not really sure what information would be needed

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[rckstrscott]

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@Anonymous wrote:

Yep definitely a typo.... I apologize it was late LOL..... 

the collections are all well over 2 years old and listed as paid (I know that doesn't help the score)....

I'm hoping the improved payment history on the auto loan will start working the score back up slowly....

the FP cc will be paid in a week.... 

what more details would I need to add? 
this is my first time posting on here so I'm not really sure what information would be needed

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Welcome!

First off where did you pull your scores from? Are those FICO scores? Did you pull your FICO scores from this website which will show you your mortgage scores? - They use your MID score, so having all three major CRAs scores is helpful to know since you could get to 581 on one, but if the other two are below you will be in trouble.

Have you pulled all three reports from AnnualCreditReport.com to make sure you aren't missing anything?

9 collection accounts reporting? You should work to remove those paid collections with good will letters. Which companies are the accounts with? 9 collections usually indicate other possible derogs on your credit. Are there any charge offs reporting?

As FireMedic stated, having 3 months of good payment history will do nothing to make 24 months of bad history look better You will just have to let that age. Additionally, having a card maxed out is hurting whatever possible positve scoring you can would have. You need to pay that down. Be cautioned though, you may see score bumps to 580+ on various FICO when you do that alone, but that maybe not the mortgage score.

Any other loans besides the auto loan with lates? Any previous history of successful mortgage?

-scott

[rckstrscott]

I just saw your mortgage scores listed in the signature. My bad.

I think you have a tough road to get a mid-score up that quickly in the mortgage score. Short of getting all 9 collection accounts removed, those 24 months of late payments on the loan are just crippling as the mortgage scores looks to things like installment loans pretty heavily to help an underwriter predict future stability.

Also, not trying to shovel salt on the wound, but getting a mortgage score moving that quickly in 2 months, anything short of an epic turnaround. Additionally, any underwriter would see those scores and be very, very leary. You would not pass automated underwriting and they would scrutinize your file more and those lates will be looked at terribly.

Your real goal, to be honest, should be 9 months at minimum. That will show 12 months of payment history improvement with the auto loan, and give you time to remove the rest of the negatives. 2 months just isn't really plausible.

-scott

[Anonymous]

Thanks it's taken some hard life lessons for sure to get me on the page or wanted better credit but I guess you have to start somewhere. 

The FICO scores are from myfico.com and the mortgage scores are from our lender.... 

we do have a mortgage right now on a trailer that has a positive payment history for over a year (one late payment of 30 days in March 2019 and one 60 day in May of 2019 but nothing late since) 

[Anonymous]

No lates except the auto loan 

cc's always paid on time 

I have pulled the reports from annual credit report and they all look pretty accurate 

I do have 2 charge offs of store cards but they have a 0 balance 

[rckstrscott]

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@Anonymous wrote:

Thanks it's taken some hard life lessons for sure to get me on the page or wanted better credit but I guess you have to start somewhere. 

The FICO scores are from myfico.com and the mortgage scores are from our lender.... 

we do have a mortgage right now on a trailer that has a positive payment history for over a year (one late payment of 30 days in March 2019 and one 60 day in May of 2019 but nothing late since) 

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We ALL have been there. That is why we post on forums like this. Some of us are still there, some of use got out and want to help. You are taking the right steps and it will turn around quickly if you stay focused. The main reason I say 2 months isn't plausible is not the effort but simply the time. You will need write a decent amount of GW letters to remove those 9 collections; plus time needed for the on-time payments.

Paying off the debt was huge. Now you just need to work on the removals, which can happen. Continue to make those on-time payments on the trailer and the car, and you will be where you need to be soon; just not two months. 

Good luck!!

[rckstrscott]

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@Anonymous wrote:

No lates except the auto loan 

cc's always paid on time 

I have pulled the reports from annual credit report and they all look pretty accurate 

I do have 2 charge offs of store cards but they have a 0 balance 

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Charge offs are also major derogs bringing the score down. How old are those at this stage? That 60 day late in 2019 is also hitting hard still. I would try writing letters to the mortgage company on those to remove. a 60 day late a year old on a mortgage is KILLING your mortgage scores.

-scott 

[Anonymous]

Were any of the collections that you paid off associated with the charge offs?

What advice, if any, has your lender gave you to fix your credit report? A good lender should be able to run the scenarios and tell you what you need to fix to increase the likelihood of approval.