Increasing FICO score by 6+ points

[luvs2barre]

DH's EQ score is 614. We need to raise it at least 6 points to qualify for a FHA loan. Preferably more than that so that we aren't squeezing by. His TU score is 626 and I'm assuming the EX score is close to the EQ score based on the loan officer saying our middle score was 614. Here is info on his credit file:

- 5 paid collections

-AAOA 1 year

-Ratio of revolving balances 64%

-4 inquiries

-6 credit cards:

   $4943/$5000 Authorized User

   $4905/$5000 Authorized User

   $173/$750

   $55/$4300 Authorized User

   $0/$300

   $0/$400

What would be the best course of action if you had $4000 to work with?

Thanks!

[llecs]

If the $173 and $55 balance CCs are not closed, then PIF both of those. Then spread the remaining equally across the two highest CCs. That alone would likely get you your 6 points.

Per the CAs, they are really damaging your score. $0 balance CCs are just as bad as $10,000 balance CCs. Send each of those a GW letter asking them to remove. Do this if and only if the are CAs. Do not do that just now if they are OC accounts.

[luvs2barre]

Thank you llecs. We did send GW delete letters to the CA's in October. I believe some deleted because back in August he had 8 paid collections and is now down to 5 paid collections. Some have sent back letters stating they wouldn't delete.

But we will definitely pay down on the CC's. None of the CC's are closed, they are all open.

[llecs]

Congrats on the paydown and good luck on the house.

[cdtotten]

If he is an AU on the two $5,000 CL credit cards, I would remove him as an authorized user immediately. His average age of accounts is already pretty bad, so removing these accounts isn't going to hurt. Removing the two would lower his utilization to 4% and would shoot his score up immediately.

Maybe I am missing something, but doing this combined with paying off those tiny balances would get you the points he needed and a lot more. I can't see a reason to be an AU on an account with such high utilization.

[luvs2barre]

cdtotten-

I had not thought of removing him as a AU. The two cards with the high utilization were opened in 4/2009. If I call the bank and remove him as a authorized user, when it would be removed from his credit reports?

[AndySoCal]

What are the first two score reasons/ factors on the Equifax credit report? This will help in knowing to see what is impacting the score the most.

Message Edited by AndySoCal on 11-16-2009 03:57 PM

[haulingthescoreup]

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cass wrote:

cdtotten-

I had not thought of removing him as a AU. The two cards with the high utilization were opened in 4/2009. If I call the bank and remove him as a authorized user, when it would be removed from his credit reports?

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Typically, they would be removed the next time the card updates, which is generally on the statement date.

And don't forget that you then have to wait for the CRA's to update as well.

[luvs2barre]

I just wanted to update that we were able to get the authorized user accounts off of the credit bureau. I disputed with the credit bureaus and they were deleted. My husband's EQ score is now 652. I can't say how many points he received from having the accounts taken off because all of the collections he had on EQ were deleted as well. (we wrote GW letters and they were due to fall off in April anyway)

[Jazzzy]

cass, congratulations on your progress. You are now over the hump for a mortgage. That's a nice increase in a short period of time.