Watching,
You never responded to the utilization question. Need to know on revolving credit lines (thats credit cards for the most part, personal LOC maybe) what balances are reporting (even if you pay in full, it can still report a balance), and what are the credit limits. You are most likely to get a score gain there if you pay it right.
LIMITS IN CARD DESCRIPTIONS
Hmmm. No idea how it is going to score you with no revolving credit. Revolving credit utilization is usually the place to go for immediate FICO jumps. Based on what you have said, the only places I can see you getting a score jump would be to get the remaining lates off your report (via dispute or GW). Also, on the liens, if i remember correctly they are removed from the credit report from the time they are paid and not released. I had an issue where I had paid but it never got released. Had to fight the CRAs a little to get it to report correctly and fall off the report as they had been paid more than 7 years ago.
One other thing to try (but don't do it without talking to people and doing your reasearch): You could create a revolving credit line by getting a secured credit card.
Make sure you get secured card that does not do a hard inquiry so you don't get the hit. Check your AAoA and see how it would be effected by new credit line. The positive thing is that you would have revolving credit line that it could measure utilization one (best case is to have a very small balance reporting).
Anyone care to comment. No idea what the overall effect would be, but I would check the FICO Score Estimator for some guideline. Basically, you are taking a hit for new card and reduction in AAoA. But you are getting revolving credit utilization measurements.
Just ran through FICO score estimator with guesses on Watching's situation. Seems like creating one credit card will help her score immensely. Still scared to recommend this. Can anyone comment on this?
@Crashem wrote:Hmmm. No idea how it is going to score you with no revolving credit. Revolving credit utilization is usually the place to go for immediate FICO jumps. Based on what you have said, the only places I can see you getting a score jump would be to get the remaining lates off your report (via dispute or GW). Also, on the liens, if i remember correctly they are removed from the credit report from the time they are paid and not released. I had an issue where I had paid but it never got released. Had to fight the CRAs a little to get it to report correctly and fall off the report as they had been paid more than 7 years ago.
One other thing to try (but don't do it without talking to people and doing your reasearch): You could create a revolving credit line by getting a secured credit card.
Make sure you get secured card that does not do a hard inquiry so you don't get the hit. Check your AAoA and see how it would be effected by new credit line. The positive thing is that you would have revolving credit line that it could measure utilization one (best case is to have a very small balance reporting).
Anyone care to comment. No idea what the overall effect would be, but I would check the FICO Score Estimator for some guideline. Basically, you are taking a hit for new card and reduction in AAoA. But you are getting revolving credit utilization measurements.
Depends on how quickly the mortage application is happening, unfortunately it sounds like it's going on right now.
If we were talking six months out, opening up a revolving tradeline would probably be beneficial, and at that one year mark certainly so... though trying to find a secured card which doesn't do a HP (and still reports) is a challenge. Being the first revolving credit line, it might be a straight boost as soon as it reports even with the inquiry; however, the likelyhood of it's being reported in time, and secured cards invariably take longer to report with the deposit transaction required, is unlikely.
To the OP, do you need to buy the house right now, or are you considering putting it off for 3-6 months if required? From where you're at now there's not a whole lot you can do to boost your score other than to get the liens and other derogatory accounts removed if possible (and with State / County liens that's a challenge, IRS since 2011 you can get them removed once satisified), or to open up a credit card (or even two) and get them to report, though you're probably waiting six months if you do that.
I don't think there's an easy answer to this one, I think it boils down to you need to do some things to boost your score over time, and put off buying a house unfortunately. That's the same situation I'm in with my scores, I just can't get there from where I'm at now.
@Crashem wrote:Just ran through FICO score estimator with guesses on Watching's situation. Seems like creating one credit card will help her score immensely. Still scared to recommend this. Can anyone comment on this?
Probably if it's the first revolving account ever. How much so is unknown... but it's probably 2 months to get that boost at a minimum just to report even.
Wells congrats. I would still pursue the secured credit card thing after the mortgage closes. You will likely see a high score jump and probably refi mortgage at lower rate in the future.