ummnajee wrote:
Ok, I'm new to this whole fico thing. I'm only 26 and in the near future I want to own my own home. I now understand that fico plays a major part in my ability to obtain a loan. I have pulled my credit repot and saw that after paying off my collections and debts( $3,000). That my score did not go up. I have asked the question about getting acredit card and I'm working on that now. I know that fico is measured by how you pay your bills. I only have a few things in my name Ex. my prepaid cell phone and a security system that I owe $120 to. I have a old electric bill for an overwelming of $2,000 that has not appered on my credits report. I also have a water bill that has not showed up on my report either. Both eletric and water has been shut off. Do I make some type of arrangement with them both or do I wait until they reach my report?
Welcome to these forums!
FICO plays a HUGE part in the mortgage approval process.
A paid, paid-down, or an unpaid collection from a CA all counts equally and just as bad. You might want to post specifics in the General Discussion forum and someone there will help you along the process to get those CAs removed. Read also credit scoring 101.
With the unpaid utilities, IMO, I'd call them and ask if they still own the debt. If so, I'd make an arrangement to make monthly payments. They won't go out of their way to report on the CRs if you are paying ontime from here on out. If they sold the debt, the CA, by law, must contact you via a dunning letter. Chances are the OC still owns the debt.
Edit: Timothy types faster than me.
Message Edited by llecs on
03-21-2008 11:03 AM
