Need to Increase my Score for new home

[burghboy]

This forum has been a life saver! I went through a divorce 4 years ago which left me in the financial doghouse with score in the 400s that I have been digging out off and made some good progress in the last 2 years especially. Any advise in improving my score will be more than appreciated as I'd like to buy/build a new home in the next year. Here is the current picture:

1. Current Scores: Eq: 637, TU: 653, Ex: 634

2. Badies on my report:

    - 3 Paid credit card COs (paid off 2 years ago but still on my report)

    - 4 credit card COs showing balances but no more reporting as of mid last year (I am considering settlement offers)

    - 1 unpaid auto loan CO stopped reporting in November 2021

    - Several student loans reported 90 days late in 2019 but back in good standing

    - Mortgage reporting 30 days late three times. Last late was in August 2018. Loan account is now paidoff and closed.

    - Auto loan 60 days late in March 2020. Loan now paid off and closed. 

    - 5 credit cards with late payments ranging from 30 to 90 days between 2016 and 2017. All now in good standing.

3. Positives:

    - No late payments in the last 24 months

    - Revolving credit limit of 80k (utilization at 8%)

4. Other Info:

    - 2 car loans totaling $45,000 (both are less than 7 months old and in good standing)

    - No collections or public records

    - New revolving credit account 3 months old ($3500 limit)

    - 4 Inquiries on my report in last 6 months

I'd like to get my score closer to 700+ and want some advice on next steps I can take to reach my goal. Any advise will be more than welcome. Thank you

[SouthJamaica]

---

@burghboy wrote:

This forum has been a life saver! I went through a divorce 4 years ago which left me in the financial doghouse with score in the 400s that I have been digging out off and made some good progress in the last 2 years especially. Any advise in improving my score will be more than appreciated as I'd like to buy/build a new home in the next year. Here is the current picture:

1. Current Scores: Eq: 637, TU: 653, Ex: 634

2. Badies on my report:

    - 3 Paid credit card COs (paid off 2 years ago but still on my report)

    - 4 credit card COs showing balances but no more reporting as of mid last year (I am considering settlement offers)

    - 1 unpaid auto loan CO stopped reporting in November 2021

    - Several student loans reported 90 days late in 2019 but back in good standing

    - Mortgage reporting 30 days late three times. Last late was in August 2018. Loan account is now paidoff and closed.

    - Auto loan 60 days late in March 2020. Loan now paid off and closed. 

    - 5 credit cards with late payments ranging from 30 to 90 days between 2016 and 2017. All now in good standing.

3. Positives:

    - No late payments in the last 24 months

    - Revolving credit limit of 80k (utilization at 8%)

4. Other Info:

    - 2 car loans totaling $45,000 (both are less than 7 months old and in good standing)

    - No collections or public records

    - New revolving credit account 3 months old ($3500 limit)

    - 4 Inquiries on my report in last 6 months

I'd like to get my score closer to 700+ and want some advice on next steps I can take to reach my goal. Any advise will be more than welcome. Thank you

---

Try to maintain your revolving accounts so they all report zero balances, except one reporting a small balance.

[Junejer]

Were your late payments (mortgage and auto loan) brought to current status before being PIF?

Seems to me, PFD on the CO with balances would be a great idea. Also GW letters to the other paid CO.

If there are any individual CC with high util, get them down under 9%. Keep util low on all cards.

No more credit inquiries until new mortgage closes.

[CH-7-Mission-Accomplished]

---

@SouthJamaica wrote:

---

@burghboy wrote:

This forum has been a life saver! I went through a divorce 4 years ago which left me in the financial doghouse with score in the 400s that I have been digging out off and made some good progress in the last 2 years especially. Any advise in improving my score will be more than appreciated as I'd like to buy/build a new home in the next year. Here is the current picture:

1. Current Scores: Eq: 637, TU: 653, Ex: 634

2. Badies on my report:

    - 3 Paid credit card COs (paid off 2 years ago but still on my report)

    - 4 credit card COs showing balances but no more reporting as of mid last year (I am considering settlement offers)

    - 1 unpaid auto loan CO stopped reporting in November 2021

    - Several student loans reported 90 days late in 2019 but back in good standing

    - Mortgage reporting 30 days late three times. Last late was in August 2018. Loan account is now paidoff and closed.

    - Auto loan 60 days late in March 2020. Loan now paid off and closed. 

    - 5 credit cards with late payments ranging from 30 to 90 days between 2016 and 2017. All now in good standing.

3. Positives:

    - No late payments in the last 24 months

    - Revolving credit limit of 80k (utilization at 8%)

4. Other Info:

    - 2 car loans totaling $45,000 (both are less than 7 months old and in good standing)

    - No collections or public records

    - New revolving credit account 3 months old ($3500 limit)

    - 4 Inquiries on my report in last 6 months

I'd like to get my score closer to 700+ and want some advice on next steps I can take to reach my goal. Any advise will be more than welcome. Thank you

---

Try to maintain your revolving accounts so they all report zero balances, except one reporting a small balance.

---

You are in a catch-22.   Those three charged off credit cards and that that charged off auto loan need to be paid/settled.    Even if you can get them to settle for 40% of the amount owed, that would settle them.   The problem is when you go to settle a charged off account that has not been reporting is that they will update the account to show the charged off status for all those months since they stopped reporting with a final entry to show paid/settled for less or whatever you do.    Most mortgage undwriters, even if they will approve you, are going to condition their approval on your settling those charge-offs.    Also, original lenders never do pay for deletes.   Collection companies will do so routinely, but you do not mention any collection agencies being involved.    It goes without saying that you should not open any new accounts until after your mortgage closes -- even if that's two years from now.    Even if it lowers your scores for a while, until those four charge-offs are dealt with you're going to have trouble getting approved for a mortgage.

[burghboy]

Thank you. The lates were current before PIF.

[burghboy]

I sort of felt the catch-22 as well. But thanks for the analysis! At this point it makes sense to settle the COs regardless and take the hit now than take it later. If I don't it will come back to bite. Better now than later. Thanks again for your advise.