How bad are HP's?

[Stryder]

Great info, that is where I am now...hunkering down to let things grow...my utili is also what i am working on..I will be at 8% in Oct and on down from there. i want to take it below 5% and that hold around there? My CL is 16k right now.

I really appreciate everyones input..it confusing when you never studied credit before. I WISH I had done this a LONG time ago!

[Anonymous]

When monitoring your scores, remember that most mortgage lenders do not use FICO 08, often using the middle of the three FICO 04 scores (one from each CRA).   The good news is that when you buy your report from here, these are now included as a score varient.   They can be somewhat different from 08.

[Stryder]

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@Anonymous wrote:

When monitoring your scores, remember that most mortgage lenders do not use FICO 08, often using the middle of the three FICO 04 scores (one from each CRA).   The good news is that when you buy your report from here, these are now included as a score varient.   They can be somewhat different from 08.

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I did pull my TU here and its awesome...the FAKO's had me all screwed up and I feel this is real info here... My mortgage FICO before I added my last 2 cards was 735

Chickenpotpie:  I was in a hurry when I read your post (at work) and missed your point about keeping the util at 11%...did you mean dont go lower than that or dont go higher? I can have my util down to zero if need be..

[Chickenpotpie]

I think you're doing quite well!     Your LO is good to tell you what they did but should have expanded on the why's.   But hey thats what we're here for right? 

You can be higher on UTL, but 11% seems to be a bit of a sweet spot for many.  Allows you to live but not so restrictve as like, 9.   So yeah if you can, no higher than 11% especially if your scores are on the lower side. 

My LO pulled EXP at 742.    The scores are different from F8, but I also knew that as long as F8 had the same info on it, who was paid, when was paid, then golden.

I did NOT pay all the cards down because for me, it dumped my scores.

Also if you haven't already, start a folder for the paperwork.  My LO wanted everything by mail by a certain date every month...NO EXCEPTIONS!  I would get all kinds of reminder emails for paystubs  and whatnot, and you know what?  that type of tough love from them is what made it possible for me to really sail through closing without any issues.

By 2017, the HPs you have should have little impact on your chances of getting a mortgage as long as everything else stays the same or gets better. 

Just don't get too itchy for a new card between now and then...lol   good luck!

[Stryder]

Just don't get too itchy for a new card between now and then...lol   good luck!

Haha....actually, I am good on cards...I am very pleased with the ones I have and plan on just growing with them. My Baddies i had were CCards from 2009 that crashed. The last of those marks will be gone by the end of the year. I never understood how to manage cards, I thought they were there to put new rims on your and pay them off $25/mo...pretty soon they're maxed out and I think Ive done good with my cards because I paid them on time. I had never seen my credit report until this year when I got serious about getting our scores up. I finally figured out utilization.

My BoA was my first card to get and that was in 2012 for $500. I ask my LO how much balance I should keep on it and he said they liked to see it around 50%. Well sure they do, so they can get interest out of me. I am going to be very deligent about keeping that at the proper level. I learned my lesson.

I bought a TV for $3,200 in Nov 2015 and got a 36mo no interest card to carry it on (SYNC). Awesome, this will really help my CR!! it wnet from 680 to 630 right before my eyes. I only had my BoA card so adding this drove my util up to about 80%.

Ive paid it down to $1,100 now and my TCL is 16k. I am excited about learning what Im doing and having really good credit! This forum and people like yourself that helps others is incredible....this is like a Crediholic Anonymous to help those that have crashed out of ignorance. REALLY glad I found it!

[driftless]

I don't know if adding adding 7k in credit to get your util below is going to help you with a mortgage. More credit cards won't change your dti. I think that hp's are more harmful than most people admit. I have been noticing while reading this board that the folks who argue hp's don't matter often have numerous, low limits for the most, and/or low scores listed in their signature. Not everyone, but this been my general observation. Naturally, hp's are part of the rebuilding process. Also, don't be surprised if your mortgage broker/banker/lender asks you explain every hp over the last year.

Good luck with your mortgage in 2017!

[Anonymous]

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@driftless wrote:

I don't know if adding adding 7k in credit to get your util below is going to help you with a mortgage. More credit cards won't change your dti. I think that hp's are more harmful than most people admit. I have been noticing while reading this board that the folks who argue hp's don't matter often have numerous, low limits for the most, and/or low scores listed in their signature. Not everyone, but this been my general observation. Also, don't be surprised if your mortgage broker/banker/lender asks you explain every hp over the last year.

Good luck with your mortgage in 2017!

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Wonder if that is true.  I think it is somewhat the other way around, at least on some other boards, those with good scores and thick files don't worry about HPs.   But you may be right with some new rebuilders who apply for a lot and don't get hit, at first!

[driftless]

Perhaps, I think that it is a chicken and egg discussion. I suspect that those that hp's do not effect already have a good AAoA and higher CL's.

[Stryder]

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@Anonymous wrote:

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@driftless wrote:

I don't know if adding adding 7k in credit to get your util below is going to help you with a mortgage. More credit cards won't change your dti. I think that hp's are more harmful than most people admit. I have been noticing while reading this board that the folks who argue hp's don't matter often have numerous, low limits for the most, and/or low scores listed in their signature. Not everyone, but this been my general observation. Also, don't be surprised if your mortgage broker/banker/lender asks you explain every hp over the last year.

Good luck with your mortgage in 2017!

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Wonder if that is true.  I think it is somewhat the other way around, at least on some other boards, those with good scores and thick files don't worry about HPs.   But you may be right with some new rebuilders who apply for a lot and don't get hit, at first!

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My thought process was trying to get myself back into a healthy financial position. With only $500 worth of credit and DW and I driving cars with 100,000 miles a piece last year, something like a transmision going out would have been devasting. Before I added the 2 cards, I had  grown my  TCL of $3,750 this year (not counting SYNC because I cant use it but on specific things) The 2 cards now gives me $11k that will grow over time which gives us some backing.

My scores should also get better. I looked at trying to do something last year for a house (which accounts for some of the HPs), but our score was only 630 and we didn't have enough for the down. The 630 would have probably gotten us in, so I figure a 750 with some new accounts ( that are for re-establishing myself, not card collecting) should be something that I can explain and show financial resposibility. But I've got to stick to it and farm everything perfectly.

Really appreciate the input....helps me to focus on what I need to do!

[driftless]

terryj - you have made some really good progress quickly, congratulations. I would suggest starting to talk to a mortgage banker/broker now.