NO SCORE CHANGE!!! Please help!

[UpAndComing74]

Sooo, Im attempting my first FHA mortgage, when my LO pulled my credit it was EQ 616 TU 597 EX 548.  She said my mid score needed to be a 600. So I'm 3 points off.  WELL, there were 2 collections on my report from RJM totaling $1061.  They were set to fall off 07/11.  SO I called them and they agreed to a PFD.  I paid them and contacted the CRA today.  I was advised that the accounts had been deleted.  I updated my FAKO report at Truecredit and it too showed that the accounts were deleted...BUT THERE WS NO CHANGE IN SCORE!!! Please explain to me how that can possibly be!  I'm currently at 90% util on my CC''s.  I know paying those down will cause a boost.  But shouldn't the removal of 2 negative accounts cause a boost also?????

[Jazzzy]

A bit confused here...are you saying there was no change in your FAKO score or your FICO score?

Also, remember...mortgage lenders often use TU04, and the TransUnion score we get here is TU98, so the TU score you get here will likely be different than your LO will get. When will your LO pull again?

I would think the collections being deleted would help. But...pay down some of that credit card debt if at all possible. That will easily give you the 3 points.

[UpAndComing74]

Thanks for responding..to clarify...there is no change in the FAKO...I haven't bought the updated FICO yet. But I thought it safe to assume thati if the FAKO changes the FICO would also. My 3 CC have limiits of 1100, 2000, and 200 with balances of 868 (HSBC) 2019 (credit union) and 30 (store card) respectively. I'm paying my HSBC Down to 100 tomorrow.  We want to pull again 2/20.

[Jazzzy]

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@UpAndComing74 wrote:
Thanks for responding..to clarify...there is no change in the FAKO...I haven't bought the updated FICO yet. But I thought it safe to assume thati if the FAKO changes the FICO would also. My 3 CC have limiits of 1100, 2000, and 200 with balances of 868 (HSBC) 2019 (credit union) and 30 (store card) respectively. I'm paying my HSBC Down to 100 tomorrow.  We want to pull again 2/20.

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Are you over the limit on this card, or am I reading it wrong? If so, you need to pay some on this card to get it under the limit.

What your FAKO does is not necessarily the same as what your FICO would do. They often do not correlate.

If you have another 3 weeks or so before you pull again, is there any possibility of paying more on these cards? Your utility is hurting you.

For one thing, pay the 30 off on the store card and get it to a zero balance...and leave it at a zero balance until they pull again. FICO also counts HOW MANY cards you have balances on. Ideally, you should only show a balance on one out of three.

Also, remember, just because you pay a card down doesn't mean it reports right away to the credit bureau. Some cards report the balance shown on the statement, and some report the last business day of the month. You may want to ask on the Credit Card forum how/when your card reports. You not only have to manage the balances, you have to manage the reporting.

[UpAndComing74]

Cooooollll!!! Ok so I understand what you're saying.  I happen to know the habits of all three cards.  HSBC reports last day of the month.  Credit Union reports on the 14th(Statement balance) and Target on the 8th(Statement balance) so I'll pay off the HSBC tommorrow. I'll also pay off the $30 target card and that bring the credit union card just under the limit.  That should give me the best credit boost right?  My plan is to hold my breath and pull 2/20 then I am free to use the balances on the card once they update.   I hope this gives me my much needed 3 points.

[AndySoCal]

I would not worry about the store card.  You want to get the credit union card below the credit limit. Being over the limit is hurting your score. Make sure you factor in what the finance charge will be when it is calculated when they bill you. You want that card reporting under the credit limit.

[Jazzzy]

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@AndySoCal wrote:
I would not worry about the store card.  You want to get the credit union card below the credit limit. Being over the limit is hurting your score. Make sure you factor in what the finance charge will be when it is calculated when they bill you. You want that card reporting under the credit limit.

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Hi Andy...the only reason I addressed the store card is that it is only 30 bucks. Getting that one out of the way may give a boost.

To the OP...I absolutely agree with Andy that you need to pay as much on the credit union card as you can. They will add a month's interest back on, and you could have penalties added if you are truly over the limit. If there's any way to throw more at that...do it.

And it's not a great idea to start using the cards after they report. You never know what can happen if for any reason they need to repull. During the time you are qualifying for a mortgage is no time to be using credit. Wait until the mortgage actually closes.

[Junejer]

The only things that I would add is that 1). By paying off the store card, there will be fewer cards with a balance, therefore, there's a great chance of seeing a score boost from that. And 2). Please make sure you check your monitoring service to ensure that the accounts have updated BEFORE you have your LO pull your reports again.

[AndySoCal]

Sorry Lynette if I offended you I did not mean to. My main concern was making sure that card gets under the credit limit. IMO if the store card reports with a balance or no balance the score will not change. I could be wrong. Getting the card below the card limit will help.  As well as paying down the other balance.

OP

What are the top two reasons on your FICO scores? These are the reasons that are influencing your score the most.

Message Edited by AndySoCal on 01-28-2010 07:01 PM

Message Edited by AndySoCal on 01-28-2010 07:02 PM

[Junejer]

The "too many accounts with balances" squawk is a real danger to the FICO score.