@Anonymous wrote:Hello. A couple of score questions:
1. Does the "was 30 days late" notation fall off after 2 years of current payments? I have a 30 day late falling out of 2 year reporting this month, and the other one is in August. Will that "was 30 days late" comment go away when the late itself is more than 2 years out?
2. I am in a DMP, and some but not all of my accounts have comments "managed by payment counseling service." Should I try to have these comments removed even though the accounts are current in the DMP?
3. I have a couple of accounts showing as in dispute that are not. How do I go about getting the "dispute" comment removed?
4. I'm a homeowner with a mortgage balance of about $242K. After some major renovations, my house is worth about $345K. I plan to sell this fall, and all existing debt will be paid off with proceeds. Current and future mortgage will be a VA mortgage. My 3B mortgage scores from here are currently 633/643/672, greatly influenced by a 30 day late 1 yr 8 months ago, and by high utilization. Because my DTI won't be an issue after the sale of this house, I'm trying to bump my scores before then to get a lower interest rate. In looking at utilization/revolving/ installment, I think I have come up with the plan below to really focus on getting thresholds down. I'd be interested in hearing comments from those in the know. I have 5 open credit cards, 2 with 0 balance (zero's not shown on here). Thank you in advance!!
Current debts:
Payoff order Balance mo pmt interest rate CLI/orig balance util Rev/Inst Paypal 2322 61 23.99 2800 0.83 r Cap -1 Plat 875 29 25.24 1500 0.58 r Apple card 1007 92 0 2000 0.50 r TSP loan 1602 171 2.375 8000 0.20 i AFFIRM 3 336 37 29.99 413 0.81 i AFFIRM 2 501 61 29.99 678 0.74 i AFFIRM 1 914 92 29.99 1097 0.83 i Discover loan 6089 153 13.99 14000 0.43 i DMP 25630 1068 i
I don't know why you're concerned about the interest rate if you're going to be selling the house in a few months. It would be a mistake to waste your time and money on refinancing with only 4 months or so left on the mortgage.
@Anonymous wrote:This isn't for a refinance. It's a pre-tune-up for the new mortgage when this one sells.
You may (well probably but I didn't confirm that on all mortgage models) get a bump at 2 years but it won't remove the notation.
Sit on your hands, pretty up the debt out of proceeds, and then see where you are. VA loans aren't highly score sensitive so your plan is fine just get as clean as possible but I suspect you'll make the score thresholds if you just stay the course and don't open anything else up. Once it's paid you might be able to get the comments removed too and DMP does hold your score down.
You're going to have to get those dispute remarks removed, basically will have to call the bureaus. There's a sticky in the mortgage forum for that. I wouldn't do that right now I'd get the DMP sorted and then worry about the pre-UW details.
@Anonymous wrote:This isn't for a refinance. It's a pre-tune-up for the new mortgage when this one sells.
OK then best things you can do now for your mortgage scores are
1. Try to get rid of negatives if possible.
2. Not apply for anything that could create a hard pull.
3. Let one bankcard report a balance between $10 and $99, while your other revolvers report zero.
@Anonymous wrote:Thank you. I'm familiar with AZEO.
However, that's not going to be possible in the time frame I have. What I was asking is if the plan in my first post is the best way to optimize my score between now and about August/September. I will be paying off all debt with the proceeds of the sale of this house, and will then get to AZEO. However, I'm trying to maximize my scores between now and then so as to get the best interest rate with the new mortgage. Paying them off at closing is great, but that won't impact my scores BEFORE I get the mortgage, which is my goal.
Sorry I couldn't discern a plan in your original post.
@Anonymous wrote:From my first post. The plan is the table right below it.
<<<In looking at utilization/revolving/ installment, I think I have come up with the plan below to really focus on getting thresholds down. I'd be interested in hearing comments from those in the know. >>>
I'm sorry if my post wasn't clear......I'm not sure how I could re-word it to help. It makes sense to me, but then I guess it would.
What I am asking is if the payoff order in the table in post #1 represents the best way to get thresholds down in the next 3-4 months to improve my scores and thus get a lower interest rate. I will be paying off all debt at closing when my current house is sold, but that will take 30-45 days to be reflected in my scores. Like many people, I will be closing on the house I am selling in the morning and the house I am buying in the afternoon.
Thanks for the clarification.
No that payoff order would not be the most advantageous for your mortgage scores.
The best payoff order for your mortgage scores would be to get as many zero balances as possible as fast as possible, so that would mean paying off the smallest balances first.
