Rebuilding help

[Anonymous]

So I've been following these forums for a few weeks now and finally decided to actually join. 

I've been tracking my scores on Experian and Credit Karma, which I've found isn't the best idea. 

My husband and I are looking to buy a home in the next six months, but admittedly, my credit is awful and I would like some suggestions on what the best plan would be for me. 

I've sent settlement letters on everything and will list the items and plan for the things that remain on my report. 

First Credit - $483, Will do a PFD this week, reports on the 26th

Citi- $271, paying this week.  Will not delete. Reports on 22nd

Midwest Recovery for Pay day one - $337, paying this week. Will PFD, reports 31st

Ad Astra for speedy cash- $1195not 2 years old, so idk if they will honor the PFD or if I should pay OC. Will pay next week, reports on the 1st

First Premier - Charge off $521, but still with them. Paying next week, will report on 7th. Will not Pay for delete, also got a settlement offer with a CA, not sure who to pay for the best response. 

Credit Union - $1005, they won't settle or delete, reports on the 31st. I can pay this next week. Listed as a charge off. 

Santander - voluntary repo $16424 on credit reports but in Santander site, balance is $13k. Not in the state's with the settlement, but disputed this just in case. 

Student loans $140k, in deferment due to in school status and all in good standing. 

I have a few that have already been PFD that haven't updated on reports yet. 

Current capital one card with $600 limit, balance is $5

Secured Discover just opened this month with $500 limit, balance is $40

Authorized user on Capital One card with $600 limit, balance is $0

FICO 8: 603 exp, 585 equ, 602 tu

Mortgage score: 543, 513, 539

I also have a capital auto loan that has a ridiculous amount of lates due to falling behind and just paying enough to not fall further behind but not catching up completely. It's currently being paid as agreed with last 30 day late for January.

As you can see, I'm a disaster, but hoping to get my life together, I do have approx $6k/month that I can put towards whatever...anyone think I have a chance in hell of buying a house?

[Doodlebug30]

My husband just went through all this to buy a rental property. His scores were in the high 500's. He has charge offs and collections accounts galore. He did PFD for all his collections & paid the outstanding balances for his 2 charge offs that he had left & his score shot up to 650 ish. He was able to obtain the mortgage at that point. With the help of the mortgage guy doing rapid rescore it all happened within like 1-2 months. So i would def tackle as much as possible as fast as possible. Just something to keep in mind AFTER the mortgage, his scores came down about 20-30 points after the mortgage reported. Apparently thats normal....a bummer after all the hard work but normal. I think its def doable. Just buckle down n get er done!

[Doodlebug30]

Also just a side note, he saw the biggest score increase from paying the outstanding balances on his charge offs. He did gain points for each collection but that was like 5-10 points each because they were over 2 years old. When the charge offs reported with a zero balance, his score went up like 40-50 points. So i would make any charge offs you have a priority. Those add to utilization.

[Anonymous]

Thank you!  I started maybe 3 weeks ago, and have just been paying stuff every chance i get. Once i finish paying, the collections will all be deleted and the charge offs will be zero. I'm hoping the string of lates on the car won't hurt too bad. 

[Doodlebug30]

Unfortunately lates will ding your for as long as they're there. But some will fade over time. I still have a string of student loan lates that won't fall off until next year. Can't wait for that. But Good luck!! I think you will be in good shape once you get that stuff paid 🎉

[Cjethompson2017]

Can I ask what mortgage company you went through? And, did he pay the charge offs in full or settle? I'm trying to quickly get things repaired to get a house in two months.

[Anonymous]

Don't mean to be negative Nancy, but if you realize you are a "disaster" as you say it (which most of us are/were🤣), are you financially ready for a house? The good thing I see is most of your debt is small and can be paid quickly if you have the means. Hopefully most can be taken off, never hurts to ask/negotiate, especially if you're paying in full. 
And the lates are gonna be there for a while. I have 8 on my student loan from 2016 and they are still holding me back from being great 😃

[Anonymous]

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@Anonymous wrote:

So I've been following these forums for a few weeks now and finally decided to actually join. 

I've been tracking my scores on Experian and Credit Karma, which I've found isn't the best idea. 

My husband and I are looking to buy a home in the next six months, but admittedly, my credit is awful and I would like some suggestions on what the best plan would be for me. 

I've sent settlement letters on everything and will list the items and plan for the things that remain on my report. 

First Credit - $483, Will do a PFD this week, reports on the 26th

Citi- $271, paying this week.  Will not delete. Reports on 22nd

Midwest Recovery for Pay day one - $337, paying this week. Will PFD, reports 31st

Ad Astra for speedy cash- $1195not 2 years old, so idk if they will honor the PFD or if I should pay OC. Will pay next week, reports on the 1st

First Premier - Charge off $521, but still with them. Paying next week, will report on 7th. Will not Pay for delete, also got a settlement offer with a CA, not sure who to pay for the best response. 

Credit Union - $1005, they won't settle or delete, reports on the 31st. I can pay this next week. Listed as a charge off. 

Santander - voluntary repo $16424 on credit reports but in Santander site, balance is $13k. Not in the state's with the settlement, but disputed this just in case. 

Student loans $140k, in deferment due to in school status and all in good standing. 

I have a few that have already been PFD that haven't updated on reports yet. 

Current capital one card with $600 limit, balance is $5

Secured Discover just opened this month with $500 limit, balance is $40

Authorized user on Capital One card with $600 limit, balance is $0

FICO 8: 603 exp, 585 equ, 602 tu

Mortgage score: 543, 513, 539

I also have a capital auto loan that has a ridiculous amount of lates due to falling behind and just paying enough to not fall further behind but not catching up completely. It's currently being paid as agreed with last 30 day late for January.

As you can see, I'm a disaster, but hoping to get my life together, I do have approx $6k/month that I can put towards whatever...anyone think I have a chance in hell of buying a house?

---

AD astra deletes once it is 2 years old. I am guessing this is speedy cash because that is their in-house collection agency. So since it is speedy cash, the difference will likely be none in regards to PFD. How new is it? Is goes by DoFD and not when the collection was "opened". I would definitely deal with AD Astra because they will delete after it is 2 years past DoFD because if you don't, they send it to NCA (usually) and they will not do PFD at all.

Definitely pay off first premier (usually the CA for them PFD, but we need to know who it is to tell you). I say this because FP has been generous lately and has done GW deletion of the original tradeline after paying.

And TBH, overall, most all mortgage UWs will want *all* debts (like CAs and COs) paid before they will approve you for a mortgage whether or not they PFD. They need to all be paid/settled. I suggest if they do not PFD to PIF because it "looks" better to a mortgage UW.

I also would not app for any more credit products. I saw you got the disco card this month or last month. It is good to not app for anything within a year of apping for a mortgage.

30d lates diminsh in pain quicker than more severe lates. Since they are fresh and in multitudes they are gonna hurt for a little bit. They say around the 1-2 years mark. Idk with several if the scoring ding is longer, tho. I would definitely go on a major GW campaign with Cap One to see about getting some or all of those lates removed.

I will say with payday/cash advance loans so recent, do you feel like the both of you are in a good spot to buy a home? Do you have a down payment in addition to the cash to work on your baddies? Is it possible to postpone buying a home until the year mark?

Good luck!

[Anonymous]

I say disaster just because there is a lot going on there.  

Pretty much everything on there can be taken care of via PFD, which will be done in then next 2 weeks. 

[Doodlebug30]

The charge offs had to be paid in full. & I'm not 100% sure the mortgage company.