A question about when, and how my scores will rise.

[Anonymous]

A few months ago I was faced with $30000 in cc debt (On 2 cards, and it was close to 100% of the limit) due to divorce, going back to school, selling a house at a loss, etc. I entered a DMP, closed all accounts except the one at my credit union (limit of $1500). My scores were TU 648 and EQ 673. Then, in January my father passed away, and coincidentally left me $30000. I payed off my balances in full on March 24. I am now in a position where my fiance and I can look at buying a house. He has the money saved for a down payment, and his credit scores are >800. We both earn over $60k a year, the only think holding us back was the debt that I had from my "former life". What I am wondering is, #1, how long will it take for my scores to rise, and #2, how much can I expect them to rise?

Message Edited by dcweasel on 04-05-2009 02:19 PM

[haulingthescoreup]

Hi, welcome to the forums!

Can you please post back with a summary of what is on each credit report, including account opening dates, what type (revolving installment, etc.), any baddies, balance as shown on credit reports, and credit limit? What are your FICO EQ and TU scores (pulled here, not from some three-in-one monitor service or the TU or EX website)?

You might do better to apply only in his name, if he has the income to support this. Otherwise, we'll see what we can do to help you find a way to raise your scores.

[Anonymous]

Oh, there's lots on there, but here's the highlights (and I realize now, that I may not have done everything correctly, but I had to close accounts b/c of the DMP). I had two cards with balances of slightly over $15k, which are now paid in full. I have a credit card through my credit union, with a limit of $1500, which has a balance of zero, it has been open since 1994. I have 3 student loans, which have always been paid on time, total balances of $15k. I have a car loan for $11k, also always paid on time. I don't have any other major revolving credit - a couple of store cards that I have never bothered to close (victorias secret, fashion bug) but haven't used since college (late 1990s). I have had in the past several mortgages, all of which have been paid and never late, etc. I have one collection on my record, for $79, from 2 years 4 months ago, from a water bill that my ex husband hid from me, on purpose, for the express reason of harming my credit score, I paid this as soon as I found out about it (when I applied for a car loan) and have appealed to have it removed, but it is on there for now. I have 2 30 day lates. My FICO scores, from this website, are as of today, TU 648 and EQ 680, and the balances have not updated to zero yet. We found a house today, and want to put in an offer. He will not qualify on his income alone, the house is $300k, we will need both incomes. We would qualify, I think, even with my lower scores, although for interest rate purposes I would like the scores to be higher. My more immediate concern is when the balances will update, because of the debt/income ratios.

This whole thing has me upset, because I formerly had FICO scores of over 750, this divorce really racked my credit, and now I can finally start fresh, I want it to happen NOW and it isn't happening fast enough! 

[Anonymous]

OH, and the only difference I can see between the TU and the EQ that makes a score difference is that they both show the collections, but the TU makes the distinct point of highlighting it as also being a "recent" collections (the EQ has the correct date, but doesn't make that additional distinction).

[Anonymous]

Also, credit history: 15 years, AAofA, 6 years, Accounts with Balances = 7, recent inquiries = 2, accounts open in last year = 0, no accounts currently past due. For some reason, the TU is showing I have a mortgage balance of 122,000 on an old mortgage, although it also shows that the account was closed in 2002, I am not sure about the discrepency, or if this is hurting anything, it doesn't show past due, it is just a freaky glitch. I sent them a letter about it a couple of months ago, but so far it doesn't show that there is a dispute on file, and they haven't done anything about it. The other two don't show this balance.

[Anonymous]

I believe with your AAoA of 6 years and oldest account of 15 yrs your scores should be higher. FICO is very funny indeed. I have seen a 23 year old having a FICO score of 765 primarily because he has no baddies. At most his oldest account can not be more than 6-7 years old while myself with 7 years of history with no single late payment but one silly collection is dealing with a measly score of 639.

The collection is what is hurting you most. If the collection appears as joint responsibility on your credit report, then it should be easy to get rid of it. You can GW the utility company or the CA stating that your EX is the one who neglected this issue andyou are not aware of the debt until now. They can be very nasty, but you have to be persistent.

Do you have any other baddies, 30, 60, 90 or 120 days late? Any CO account? If not, then the mortgage balance need to be work on. You need to write the OC of the mortgage company to update your account to zero balance as well. 

If you get the CA account removed and have the motrgage reset to zero balance, then you should be in the 760-780 range with your account status as it stands.

DO NOT APPLY for any credit, nor give permission to anyone to pull your credit until you clean up all those mess and ready for your mortgage.

Lastly, paid down all your CC accounts to zero balance and let only one or two  accounts show some balance

< 9% utility. With that you should get the maximum FICO score possible.

[Anonymous]

So,no charge offs. 2 30 day lates. The collection was paid in full 2 years ago, when I found out about it, and it will be a matter of time for me to get it removed. I am waiting for the balances to update to the CRA from the card companies. EQ does not show a balance on the mortage, only TU, I am not sure why, so I will have to look into what. Meanwhile, we have found a house now. I guess I just go forward? We can always refinance in a year, when I get all this cleared up. I don't want to risk losing the house over this stuff. It is a great house, in an ideal location, priced well below the others in its area. This is all unfamiliar territory - three years ago, I never thought twice about whether I would qualify for anything. Now, I just don't know. My biggest quesition, I guess, is when do the balances go to zero on the credit report, since that is the looming problem?

[Anonymous]

Look at your reports and see what date your Credit Cards usually update. Example, I know that my major CC updates around the 24/25th of every month, so that's when I see my payments update (or within a week afterwards).

Your scores aren't that terrible now. You'll be alright. Good luck.