Hey guys, wife & I are looking at a mortgage, USDA loan. My fako scores are in the low 600s, so I know that we "aren't there yet". I know generally there is no correlation between fico and fako scores, the last TU FICO that was pulled, I was a 603 Beacon.
I have the following amounts in Medical/Collections
They are all recently reported, within the last year, most occurred either in 2010 or 2011, but still reporting.
Other than these items, I have had maybe 2 30 day late pays in 2008, and 1 90 day, but everything else is current and pays as agreed.
Will removing the above items via just paying the CA's help my score or hurt? It's better showing "Paid/Paid in full" vs Collection-Upaid, right?
Oh, other than student loans, I have one revolving credit card with a $0 or $20 balance monthly, so my usage is low.
Thanks for all of your insights!
In this case, I mean, I'm willing to pay. Would it be easiest to call them, or deal with folks through Certified mail? I just want it taken care of as quickly as possible. Thanks once again.
You can call them and ask if they will do a PFD. If they agree ask for it in writing. If they say they can't do that but will delete, it is a chance you would have to take. Oral agreements can be just as binding.
Thank you for the response. One final question hopefully, I just did the MyFico.com Scorewatch, and also pulled a TransUnion score.
Will pulling the score from MyFico affect my score, or show up as an inquiry? I don't think it will, but want to ensure.
There's no way to get an Experian Fico score, is there? My TransUnion is a 645, which is "doable" for a mortgage I guess, Equifax, is my low score. If I can get my Experian, I can see if I can qualify. I hate to put in anywhere until I'm "there", you know? I love this process,ha.
Pulling your own scores, or monitoring your own credit will not impact the scores themselves. These are soft inquiries. As for Experian, you can't buy a FICO score. There are some FAKO scores based on experian data I believe...but they aren't worth much.
The answer to "should I pay" has two separate aspects.
Just paying wont improve FICO score, as you dont pay off the derogs, you pay off the debt.
However, credit approval goes beyond a three-digit number. Presence of unpaid, delinquent debt can be a show-stopper regardless of FICO score.
Waiting for credit report exclusion of derogs shields them from easy view by simply pulling a credit report, but does not erase its condinued presence.
The presence of unpaid, delinquent debt always carries risk in future quest for credit.
Thanks RobertEG, I appreciate it. I'm definitely not "against" paying them off. In fact I want to pay them off. I owe it.
On the same token, if it will prohibit me from obtaining a mortgage in the short term, do I risk it? I just did the 5/3 Identity alert custom scenario, of having all of those "deleted", and it increased my score drastically. I know the score isn't the end all, be all. I want the debt gone. I also want my family to be in a home vs renting.
Thanks for your reply!