So.Many.Questions.Help.

Anonymous · ‎06-26-2019

So glad i found this site. I have been reading quite a few topics here and would like to get some advice. I am currently going through a divorce. I have some charge off accounts, one collection. My soon to be ex and myself are selling our current house. With my current Credit and FICO scores, I am currently very challenged to get a VA loan. I am with NFCU, and will either do a VA loan or their Buyers Choice loan. I should have about 6-10K in equity coming from the sale of the house. I also have about $7000 to throw at my current problems. Here are my scores...along with my questions.

Thank you all in advance.

Equifax8 - 637

TU8 - 624

Ex8 - 639

For Mortgages...

Equifax - 544

TU - 616

Ex - 548

My debts are...

JP Morgan Chase CC - 5600 - Charged Off - Payment plan of 130/month

JP Morgan Chase CC - 1600/2000

Jared Jewelers CC - 700/7600

Sears Financial - 1400 - Charged Off - 50/month

Calvary Portfolio - 2800 - Collections - they purchased from Sycrony in January - 50/month

Key Bank CC - 0/4200

Key Bank CC - 1200/1800

Avant Personal Loan - 2200 - 180/month

Auto Loan - Ford Credit - Joint account - should be removed once my soon to be ex refinances the car. - 650/month

Auto Loan - Santander - my account - 700/month

Keep in mind my goal is to improve my mortage scores. I also am going to be splitting the debt from the JPMC/5600 in a settlement with my soon to be ex.

1. Where is the best place to start?

2. Is the Calvary Collections worth taking care of all at once or leave it alone since it is on a payment plan.

3. The JPMC card that has been charged off is also on a payment plan...should i pay that one off or leave it?

4. Should i open a secured NFCU credit card with the hopes of graduating to build more credit? Or is what i have suitable.

I want to make sure i make sound choices since i have made a few bad ones.

thanks for any advice. Matt

jons998877 · ‎06-26-2019

Honestly, I think I would ignore my credit score for right now and pay off the smallest debts first, decrease your montly payouts so when you are ready top buy a house, the payment will be easier to handle..

I would probably pay off that $2200 personal loan, will save you $180 a month and I am guessing the APR is high.. Then would probably pay off the $1200 to Key Bank (will also help your utlization).. If I could get Calvary to do a PFD, that would be another target..

Just my opinion, but I would worry more about getting my financial foundation in place first and then worry about buying a house, if it means renting for 6-12 months so be it..

Begin of Journey ( 9/2018) EX 508 TU 506 EQ 498

pgtackle2003 · ‎06-26-2019

As the previous poster eluded to, the biggest problem affecting your mortgage scores right now is CC debt. Mortgage scores are highly sensitive to CC debt. Even the charged off account counts towards your Utilization % which is keeping your mortgage scores down. So the best thing you can do is pay them down. I would definately take the 7k you mentioned and pay down the highest interest loans/CC's you have first. Once those are paid and report I think you'll see your scores start to rise.

Anonymous · ‎06-26-2019

To add fuel to the fire, mortgage acores are ALSO very sensitive to any charge offs and/or collections. The more you can remove, the better. My mortgage scores are more than 100 pts higher than my DW, because I do not have any collections (where she has several medical), which is what is holding us back from gettinga house. Once I can get her scores up to at least 640 we can get a home again. GL!

Remedios · ‎06-26-2019

@Anonymous wrote:
So glad i found this site. I have been reading quite a few topics here and would like to get some advice. I am currently going through a divorce. I have some charge off accounts, one collection. My soon to be ex and myself are selling our current house. With my current Credit and FICO scores, I am currently very challenged to get a VA loan. I am with NFCU, and will either do a VA loan or their Buyers Choice loan. I should have about 6-10K in equity coming from the sale of the house. I also have about $7000 to throw at my current problems. Here are my scores...along with my questions.

Thank you all in advance.
Equifax8 - 637
TU8 - 624
Ex8 - 639

For Mortgages...
Equifax - 544
TU - 616
Ex - 548

My debts are...
JP Morgan Chase CC - 5600 - Charged Off - Payment plan of 130/month
JP Morgan Chase CC - 1600/2000
Jared Jewelers CC - 700/7600
Sears Financial - 1400 - Charged Off - 50/month
Calvary Portfolio - 2800 - Collections - they purchased from Sycrony in January - 50/month
Key Bank CC - 0/4200
Key Bank CC - 1200/1800
Avant Personal Loan - 2200 - 180/month
Auto Loan - Ford Credit - Joint account - should be removed once my soon to be ex refinances the car. - 650/month
Auto Loan - Santander - my account - 700/month

Keep in mind my goal is to improve my mortage scores. I also am going to be splitting the debt from the JPMC/5600 in a settlement with my soon to be ex.

Hi and welcome to the forums

1. Where is the best place to start? Unpaid COs and collections
2. Is the Calvary Collections worth taking care of all at once or leave it alone since it is on a payment plan. Just keep paying because more likely than not mortgage will need to wait till unpaid collections and COs are taken care of unless mortgage lender instructs you otherwise
3. The JPMC card that has been charged off is also on a payment plan...should i pay that one off or leave it?
Same as above, keep paying it down. Cash flow is important, so stick to the payment plan unless at some point you have a deadline by which everything has to be paid off
4. Should i open a secured NFCU credit card with the hopes of graduating to build more credit? Or is what i have suitable. No, you have plenty of accounts. Use the money to pay debt down.

I want to make sure i make sound choices since i have made a few bad ones.

thanks for any advice. Matt