Need to increase my FICO score by at least 6 points by 01/01/2011

[Anonymous]

Hello,

over the last several years i have worked really hard to bounce back from a divorce which left my credit in ruins. i am currently looking to purchase a home in a few months and currently my middle FiCO score is 614 and i was told i need to have a minimum of 620. I currently have the following on my credit report

bankruptcy 2006

foreclosure 2007

1 collection--i just paid this off and it is being removed from my credit report

2 auto loans-- one will be paid off november 1, 2010- both have never been late

1 motorcycle loan-- i'm a co signer, i do not make these payments-- never late

2 negative utility bills-- these are also being removed from my credit reports

2 credit cards--$35/$2000 and $3300/$3500.

do you think that with the 2 utility bills and the colleciton being taken off and paying off the one auto loan will bring me up. I know that i need to pay down the credit card with the high balance but if i do that it will take a chunk of my down payment. i can pay another $500 toward that balance by the end of the year also.

any advise will be greatly appreciated.

thanks

[vanillabean]

Paying off the $35 on the first credit card might give you the 6 points, as you're then down to just half of the cards reporting a balance. You would want to make sure that you pay off that card every month before it reports, typically before the statement cutoff. When is the cutoff for the card, and what type of card is it?

[Anonymous]

I will be paying off the $35 balance November 1st and then i don't plan on using that card anymore although i do plan on keeping it open.

[llecs]

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@Anonymous wrote:

I will be paying off the $35 balance November 1st and then i don't plan on using that card anymore although i do plan on keeping it open.

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If possible, pay more than $35. Some CCs calculate interest at the end of the statement based on the avg.daily balance. You wouldn't want to pay $35 and then have $2 in interest report (for example) and that wouldn't cause the score to change at all (when compared to $3k +). FICO likes to see $0 balances and my-own-fico's suggestion would likely work if it reads $0.

Try also paying down the other balance. It's basically maxed and you could be dinged for that now. Even $500 less reporting might help.

If the baddies remove themselves, then you would be in good shape there too.

[Anonymous]

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@llecs wrote:

If possible, pay more than $35. Some CCs calculate interest at the end of the statement based on the avg.daily balance. You wouldn't want to pay $35 and then have $2 in interest report (for example) and that wouldn't cause the score to change at all (when compared to $3k +). FICO likes to see $0 balances and my-own-fico's suggestion would likely work if it reads $0.

Try also paying down the other balance. It's basically maxed and you could be dinged for that now. Even $500 less reporting might help.

If the baddies remove themselves, then you would be in good shape there too.

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+1 to all of the above.  Your 3300 out of 3500 is definitely hurting you.  Bring it down as much as you're able.  Not only does it affect your FICO score, but your monthly payment on that bill affects your mortgage app.

[RobertEG]

Just curious.  You have three derogs that you say will be removed from your CR.

Are you expecting this based on payment of the debt, or do you have a firm pay for delete agrrement with them?

[Anonymous]

I have a letter from one of them that states when paid in full they will remove from all 3 of the credit reporting agencies. The other two are old Utility accounts that got behind when i went through my divorce. i spoke with the utility company and they said they would remove them becuase they were paid in full and i have been current since then and gave me their contact info. They said that i should also contact the three credit agencies and also put in a dispute and give them the contact info for theperson i spoke with at the utility company just to make sure it gets taken off. That was last week, Trans union has already removed the 2 utility ones just waiting for the other two.

[haulingthescoreup]

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@Anonymous wrote:

I have a letter from one of them that states when paid in full they will remove from all 3 of the credit reporting agencies. The other two are old Utility accounts that got behind when i went through my divorce. i spoke with the utility company and they said they would remove them becuase they were paid in full and i have been current since then and gave me their contact info. They said that i should also contact the three credit agencies and also put in a dispute and give them the contact info for theperson i spoke with at the utility company just to make sure it gets taken off. That was last week, Trans union has already removed the 2 utility ones just waiting for the other two.

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This is how WFNNB handled GW for me, too. Made me nervous as heck, but they followed through.

It might be how they finesse their way around the requirement that they report all negatives. This is why GW is truly GW, because we're asking the lenders to break the rules that are set by the credit bureaus. (Not that a utility company is a lender, but I guess they're considered a participant or something.)

Congrats on your GW success!