Hi all,
In PR and looking to purchase a home in the next 3mos... or at least start the process. I've already gotten prequalified but of course this is not the actual loan application and so they've not yet pulled my CR. My FICO 8 scores are currently sitting at EQ 637, TU 649 and EX 640. My Mortgage 2/4/5 scores are scarily ata 608. 
My plan is to start paying down, AZEO method, as much as I can before the next 3-4 months. PenFed here requires a minimum score of 680 for their conventional home loan (they do not offer FHA loans here in Puerto Rico). Last month I applied for CLI with Cap1 online to lower my overall util% and they only bumped up my cards by $100 each (womp-womp).
Below is a bit more on my profile:
Baddies: 3 (30) day lates & 1 (60) day late. Last late was 6 months ago.
- Penfed cc: 5000 / 4940
- Childrens Place store card: 1550 / 0
- Capital One Platinum cc: 400 / 303
- Savor One cc: 1100 / 1033
- Kohls store card: 300 / 0. (never use this card)
- PSECU cc: 5500 / 5411
- Car Loan: Was 16K / now bal is 6115
Is my above strategy enough? Is there a better route to maximize my scores within the next 3 months? Is it even possible?
@financialfreedom777 wrote:Hi all,
In PR and looking to purchase a home in the next 3mos... or at least start the process. My FICO 8 scores are currently sitting at EQ 637, TU 649 and EX 640. My Mortgage 2/4/5 scores are scarily ata 608.
My plan is to start paying down, AZEO method, as much as I can before the next 3-4 months. PenFed here requires a minimum score of 680 for their conventional home loan (they do not offer FHA loans here in Puerto Rico).
Baddies: 3 (30) day lates & 1 (60) day late. Last late was 6 months ago.
- Penfed cc: 5000 / 4940
- Childrens Place store card: 1550 / 0
- Capital One Platinum cc: 400 / 303
- Savor One cc: 1100 / 1033
- Kohls store card: 300 / 0. (never use this card)
- PSECU cc: 5500 / 5411
- Car Loan: Was 16K / now bal is 6115
Is my above strategy enough? Is there a better route to maximize my scores within the next 3 months? Is it even possible?
Start by paying off the Cap One platinum and Savior. Then get the 2 high balance cards to under 29% UT each. Next payoff one of those 2 cards to get aggregate UT under 9%.
Will that be enough to increase middle mortgage score to 680? Probably not given the recent lates. However, as @FicoMike0 suggests, paying down the car loan to 9% B/L can further boost your score - perhaps an additional 20 point.
End of the day, reaching your goal score and qualifying may require your most recent late aging to 12 months.
Consider looking at alternate lenders besides Penfed. My understanding is the minimum middle Fico score for a conventional mortgage loan in Puerto Rico is 620. Your scores should safely reach 640 at AZE1 excluding Auto loan paydown.
P.S. if you will be purchasing an existing home for primary use, FHA loans are available for Puerto Rico.
@financialfreedom777 wrote:Hi all,
In PR and looking to purchase a home in the next 3mos... or at least start the process. I've already gotten prequalified but of course this is not the actual loan application and so they've not yet pulled my CR. My FICO 8 scores are currently sitting at EQ 637, TU 649 and EX 640. My Mortgage 2/4/5 scores are scarily ata 608.
My plan is to start paying down, AZEO method, as much as I can before the next 3-4 months. PenFed here requires a minimum score of 680 for their conventional home loan (they do not offer FHA loans here in Puerto Rico). Last month I applied for CLI with Cap1 online to lower my overall util% and they only bumped up my cards by $100 each (womp-womp).
Below is a bit more on my profile:
Baddies: 3 (30) day lates & 1 (60) day late. Last late was 6 months ago.
- Penfed cc: 5000 / 4940
- Childrens Place store card: 1550 / 0
- Capital One Platinum cc: 400 / 303
- Savor One cc: 1100 / 1033
- Kohls store card: 300 / 0. (never use this card)
- PSECU cc: 5500 / 5411
- Car Loan: Was 16K / now bal is 6115
Is my above strategy enough? Is there a better route to maximize my scores within the next 3 months? Is it even possible?
I believe you can get where you need to go in 3 months if you can afford to pay down Capital One, PenFed, and PSECU cards.
Otherwise, no.
To get to 680 on your mortgage scores I'm guessing you'd need 4 of the cards to be reporting zero balances, with the other 2 reporting at 28% or less. By my calculations that would require throwing $9000 at your credit cards.
AZEO is meaningless in this context. Paying the installment loan is meaningless too. You might or might not get a small boost in your mortgage scores by paying the loan down to 9%, but that money will get you much more bang for the buck in your mortgage scores if applied to your credit cards.
If we forget about the goal of 680, and instead just ask "what is fastest way to improve my mortgage scores?", the answer IMHO is to pay as many accounts down to zero as possible. So that would mean snowballing the 4 smallest accounts, 1 of which is already at zero, and then paying the other 2 down as best you can.
Thanks, sound advice
@FicoMike0 wrote:Wow, you've got cards at 99% utilization! Anything over 89% is considered maxed, but you really are maxed. The recent late looks bad too. I d be surprised if you'd get any kind of credit, regardless of scores.
The good news is, you've got a lot of room for short term improvement. You want to get every card under 29% and aggregate under 9%. That should result in a big improvement the next reporting cycle. If you can do aze1, even better. If you can do all that, you should be in striking distance. You'd have to get the car loan to 9%, $1440, balance to get a boost there, but if you've got a spare $4675, that should be worth 30 points.
Best of luck, keep us posted on your progress.
Indeed! It pains me too but sometimes, for some, you can only lean on yourself. I live in PR where public transportation isn't really a thing so when my used car began having serious problems and left me on the streets I had to lean on the cards as I couldn't get a personal loan. Welp, now I can get to work, my lil one to and from school and it's back to catching up!
Anyhoot, such is life! So now... my cap1 is down to 48%, my savour card at 88%. Inching away.
I'm positive I can get there in the next 3-4months. Fallen many times but always get back up and the advice given here is always golden!
Single parent mom-hero signing out!
@Thomas_Thumb wrote:
@financialfreedom777 wrote:Hi all,
In PR and looking to purchase a home in the next 3mos... or at least start the process. My FICO 8 scores are currently sitting at EQ 637, TU 649 and EX 640. My Mortgage 2/4/5 scores are scarily ata 608.
My plan is to start paying down, AZEO method, as much as I can before the next 3-4 months. PenFed here requires a minimum score of 680 for their conventional home loan (they do not offer FHA loans here in Puerto Rico).
Baddies: 3 (30) day lates & 1 (60) day late. Last late was 6 months ago.
- Penfed cc: 5000 / 4940
- Childrens Place store card: 1550 / 0
- Capital One Platinum cc: 400 / 303
- Savor One cc: 1100 / 1033
- Kohls store card: 300 / 0. (never use this card)
- PSECU cc: 5500 / 5411
- Car Loan: Was 16K / now bal is 6115
Is my above strategy enough? Is there a better route to maximize my scores within the next 3 months? Is it even possible?
Start by paying off the Cap One platinum and Savior. Then get the 2 high balance cards to under 29% UT each. Next payoff one of those 2 cards to get aggregate UT under 9%.
Will that be enough to increase middle mortgage score to 680? Probably not given the recent lates. However, as @FicoMike0 suggests, paying down the car loan to 9% B/L can further boost your score - perhaps an additional 20 point.
End of the day, reaching your goal score and qualifying may require your most recent late aging to 12 months.
Consider looking at alternate lenders besides Penfed. My understanding is the minimum middle Fico score for a conventional mortgage loan in Puerto Rico is 620. Your scores should safely reach 640 at AZE1 excluding Auto loan paydown.
P.S. if you will be purchasing an existing home for primary use, FHA loans are available for Puerto Rico.
Great advice, thank you! I bank with PenFed which is why I wanted to go with them, they have better rates & lower closing fee's compared to what I've seen and they also pay part of the closing costs. Downside is the 680 fico score required and the fact that they do not do FHA. Still, I haven't shopped all possible mortgage options so should probably do that, good point!
@FicoMike0 wrote:Sorry, didn't mean to be critical.
No one can predict the future. I suggest that at the first sign of trouble, it would be wise to get a personal loan. I know, we don't tend to think that way, but once you get high utilization on revolving accounts, you can no longer get a personal loan.
Can only get one when you don't need it!
No worries, you are totally good, and thanks for the advice 