Mortgage Score and Collections

[Anonymous]

For those out there wondering the impact of collections on your mortgage score.  I paid for delete on 2 collections 3/5/21 and this morning my FICO4 went up 115 points and FICO2 120.  Following advice on here, I went from marginal or no chances in securing a mortgage to mainstream.  Read the advice

                     09/20/20       03/26/21

FICO2                582               748

FICO4                571               762

FICO5                601               640 (Hasn't updated in 2 months)

[House2021]

Do you have any charge offs remaining on your report? I was thinking of doing pay for delete on my collections,  it I'll still have a dirty scorecard due to charge offs, was the collections the only negative items?

[AllZero]

Congratulations on your success! Those are great score increases.

[Anonymous]

I have 1 for 1K on Equifax, made the mistake up disputing it in 12/20 and it updated.  In the middle of a mortgage app, so I'm not messing with it as TU is my middle score.  On a conventional I wasn't required to pay off.

[Anonymous]

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@Anonymous wrote:

For those out there wondering the impact of collections on your mortgage score.  I paid for delete on 2 collections 3/5/21 and this morning my FICO4 went up 115 points and FICO2 120.  Following advice on here, I went from marginal or no chances in securing a mortgage to mainstream.  Read the advice

                     09/20/20       03/26/21

FICO2                582               748

FICO4                571               762

FICO5                601               640 (Hasn't updated in 2 months)

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@Anonymous No doubt other changes took place between September of last year and now; however you definitely should've gotten an increase if those were the only derogatories on your report.

Thank you for the data points and congratulations! Do you know what the scorecard you are on yet?

[Anonymous]

Oh yes I'm sure other things happened since last fall, in fact everything came from your Scoring Primer.

Paid 2 cc down to 0 small balance on 1

Late payments aged to passed 24 moths

Average age of the accounts increased

No inquiries or new credit (Except for shopping mortgage rates 2/21)

My file is thin as i only have 3 cc.  Is there a way in the MyFICO subscription reports to tell...or the flowchart in your primer ?

[Anonymous]

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@Anonymous wrote:

Oh yes I'm sure other things happened since last fall, in fact everything came from your Scoring Primer.

Paid 2 cc down to 0 small balance on 1

Late payments aged to passed 24 moths

Average age of the accounts increased

No inquiries or new credit (Except for shopping mortgage rates 2/21)

My file is thin as i only have 3 cc.  Is there a way in the MyFICO subscription reports to tell...or the flowchart in your primer ?

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@Anonymous sounds like you're paying attention, quite astute. Yes you'll have to basically follow that flow chart. You said the derogatories are over 24 months, so that would put you in an aged delinquency card on 8/9. we would need more information to be able to determine on the mortgage Scores. I'm assuming you do not have any public records or do you?

what is the age of the oldest account on your credit report? What is the age of your youngest card and what is the age of your youngest loan? How many tradelines open and closed are on your credit report?

[Anonymous]

On EX and TU the avg age of accounts is 4 yrs 4 months

No loans just 3 revolvers

Age of youngest card is 1 year 8 months

Oldest account (1 card) was opened 4/2014

All other closed accounts have aged off

FICO 8 SCORES For Comparison

EX 715

TU 775

EQ 639

I should have also mentioned that the collections the I PFD were from ~feb-may 2018

I have a series of 30d and 60d during a layoff period in 2018, last was Dec 2018.

What's also funny is that when i paid the collections, i didn't even have to ask for PFD, they sent me a letter in advance.  Both said that it was due to Covid policies.

[Anonymous]

Thank you for sharing your situation, I find myself in the same place. what is the process to pay for the deletion? I have 2 student loan accounts that were closed in 2015 but are noted as negative accounts due to 5 late payments. They are still showing up on my account as negative and impacting the mortgage score. How can i have those accounts deleted, they have since been closed and student loans are paid off. 

I am applying for a mortgate and need help to get my  Equifax and Transunion score higher

Experian 801

Transunion 732

Equifax 735

Thanks in advance for your help!

gardens

@Anonymous you have provided valuable advice to others, would you be able to assist me with this?

#improvemortgagescore #mortgagescore #delete

[Anonymous]

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@Anonymous wrote:

On EX and TU the avg age of accounts is 4 yrs 4 months

No loans just 3 revolvers

Age of youngest card is 1 year 8 months

Oldest account (1 card) was opened 4/2014

All other closed accounts have aged off

FICO 8 SCORES For Comparison

EX 715

TU 775

EQ 639

I should have also mentioned that the collections the I PFD were from ~feb-may 2018

I have a series of 30d and 60d during a layoff period in 2018, last was Dec 2018.

What's also funny is that when i paid the collections, i didn't even have to ask for PFD, they sent me a letter in advance.  Both said that it was due to Covid policies.

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@Anonymous looks pretty good as long as you have a rock bottom of three bank cards and luckily one of them has a little age on it, you're doing good, but I do wonder about the disparity between EX & TU. 

@Anonymous if they're already paid, all you can do is the goodwill saturation technique.