Best Chance for Mortgage Score Increase

[luvs2barre]

Hi!

I want to apply for a mortgage within the next 3-4 weeks. I currently have 4 credit cards that are all reporting balances. Can you review my payoff plan strategy?

Creditor/Balance/Limit

Amazon/$555/$600

Credit One/$755/$800

Cap One/$2822/$3000

Credit One/$2012/$2050

The plan is to pay off all of the cards to 0 except Cap One and let Cap One report a $50 balance. Does that plan sound like it will work? I am rebuilding and credit card utilization is the only tool I have until things start to fall off. 

Thank you!

[CH-7-Mission-Accomplished]

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@luvs2barre wrote:

Hi!

I want to apply for a mortgage within the next 3-4 weeks. I currently have 4 credit cards that are all reporting balances. Can you review my payoff plan strategy?

Creditor/Balance/Limit

Amazon/$555/$600

Credit One/$755/$800

Cap One/$2822/$3000

Credit One/$2012/$2050

The plan is to pay off all of the cards to 0 except Cap One and let Cap One report a $50 balance. Does that plan sound like it will work? I am rebuilding and credit card utilization is the only tool I have until things start to fall off. 

Thank you!

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If you can do it, yeah, pay off all your cards except one.   I would let a small balance report on that $3K limit Cap One card.   You can even just let $5 or $10 report and it works for AZEO.   The only issue is you say you want to apply in 3 to 4 weeks.    It takes time for credit cards to update balances, usually within a few days after the statement cut date.   So 60 days would be a better horizon.   Do you know your three FICO mortgage scores right now?   Paying off those maxed out cards will give you a boost, but if you have a bunch of lates or collections or chargeoffs the reduced utilization might not be enough to get your scores where you need to be.   But I would still follow your plan and after all is updated pull your mortgage scores and discuss your chances of approval with a reputable loan officer.

[SouthJamaica]

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@luvs2barre wrote:

Hi!

I want to apply for a mortgage within the next 3-4 weeks. I currently have 4 credit cards that are all reporting balances. Can you review my payoff plan strategy?

Creditor/Balance/Limit

Amazon/$555/$600

Credit One/$755/$800

Cap One/$2822/$3000

Credit One/$2012/$2050

The plan is to pay off all of the cards to 0 except Cap One and let Cap One report a $50 balance. Does that plan sound like it will work? I am rebuilding and credit card utilization is the only tool I have until things start to fall off. 

Thank you!

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Yes that will work. Make sure all the accounts have reported before you apply.

[luvs2barre]

Thank you both for the review and reply! 

[Anonymous]

I have a bunch of lates from years ago and one charge off from almost 7 years ago.  How many of you have used a service to dispute anything.  Also when a chargeoff falls off can someone tell me how much will your score increase (points).  My charge off falls offOct 2021 and with my scores in the high 600s do I have a chance to hit that 750 mark in FICO.  On Vantage Im at 780 across the board.

[SoonerSoldier33]

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@Anonymous wrote:

I have a bunch of lates from years ago and one charge off from almost 7 years ago.  How many of you have used a service to dispute anything.  Also when a chargeoff falls off can someone tell me how much will your score increase (points).  My charge off falls offOct 2021 and with my scores in the high 600s do I have a chance to hit that 750 mark in FICO.  On Vantage Im at 780 across the board.

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Is the charge off paid and reporting a $0 balance? Most mortgage lenders require all charge offs and collections to be paid. 

It's against the rules in this forum to discuss certain aspects of 'credit repair' companies and services, but with the info you've provided that your lates and CO are old and about to fall off, PLEASE don't do it! They'll dispute stuff, wake up sleeping dogs, have old stuff refreshed and updated, and most likely sink your upcoming mortgage. Stay clear!

Remember that mortgage lenders almost exclusively use FICO Scores 2,4,5 and will take the middle (not average) of the 3 scores. These scores are different from FICO 8 that you see most often. They're particularly sensitive to accounts with balances, so your AZEO strategy will greatly help these scores. The old CO falling off should offer some improvement as well. Can't speculate on an exact point increase. You may be in the window for EE for some of your old baddies which could move the process along for you.