The VW lease 30-day late payment being removed is VITAL to your mortgage approval as it's VERY rare to get mortgage approval with late payments reporting in the last 12 months.
Regarding your 2 First Premier accounts with annual fees and 5 year history on each. I hate annual fees on cards like these, but in your situation, I'd recommend biting the bullet and keeping them with another annual fee until your mortgage loan is closed and then close these cards right before the next annual fees are assessed on your accounts.
As far as score optimization, I'd recommend the AZEO method (as long as you have at least 3 open credit card accounts reporting) and the one account reporting a balance to have a balance of no more than 8.9% of the credit line.
The First Commerce p&l from 11/2019 will likely need to be paid in full/settled, etc before mortgage loan approval and closing.
Hope this helps!
Best of luck!
Yes, until you're closed on the mortgage loan...then close the First Premier accounts right before the next annual fee hits
@Anonymous wrote:Please advise on best method to increase my Fico scores (Preferably Mortgage Scores). I am looking to purchase a home as soon as possible.
Income $75K salary
Debt total- $1172
Fico 8 EQ-608, TU-636, EX-631
Mortgage Scores EQ-611, TU-569, EX-601 (Mid score 601)
Installment Loans
1 VW Credit- Lease Balance $13,336 (****** I have a recent 30 day late payment due to covid-19. Volkswagen put me on a 3 deferment program and didn't process it in time and their automatic system caused a late payment to report to credit bureaus. Everything is processed now and they communited to the credit bureaus to have the 30 day late payment removed. This dropped my scores over 40 points.
Current credit cards accounts
1. NFCU- Balance 743/2600 (3 years, 11months)
2. Capital One- Balance 478/1500 (7 Months)
3. Comenity Bank/Express 931/2000 (5 years, 11 months)
I also have 2 first premier cards that was recently closed (April 2020) 1 month ago due to a credit repair company disputing 2 late payment from 2016 on it. Both of these accounts have 5 years history and currently reports a balance of 248/700 and 256/900 as a Closed Account. First premier advised that I can call in and reopen the account if I provide identification. I don't know if I should reopen the card because of the credit history or leave it closed because of their high annual fees and interest rates?
Last negative item is First Commerce- It shows as a profit and Loss account for $2100 Nov. 2019. This is also helping my scores.
I'm happy to provide any additional information if needed. Please advise on how to best increase my scores and should I reopen the first premier card?
1. Don't reopen anything.
2. Pay all open and closed accounts down to zero.
3. Let your Capital One card report a small balance ($100 or less) before paying that off.
4. Keep trying to get negatives removed.
