What should i expect?

[Anonymous]

First post on this great board, man am i glad i found this place. 

Im starting to look into refinancing my home and im looking for a boost on my credit score.  Right now my EQ score is a 692.  I found a tax lien listed on my report from 2008 which was a mistake and it was not mine (I share a name with my dad and that was his income tax lien from his business when he was late paying his income tax)  and i have filed a dispute.  I also have (2) 30-day lates from 2007 ( i have sent a goodwill letter this last week) but other than that there is no negative info on my report.  My revolving util is at 20% which will go to 0% after i pay it off in a few weeks, i have an auto loan that i owe 15k from 18k borrowed and my mortgage is at 92% util.

What can i expect to see for an increase when i get these lates removed and also the tax lien error?  I am really hoping to  get a 760 before i refinacne my home so i can get the best rates. 

If removing these dings isnt enough, what route should i take to get a 760?  Pay down Truck loan, mortgage? I have 5 revolving CC reporting, only 1 with a balance.  My oldest account is 10 years and 2 months, my average is 5yrs.

Thanks for any help you cn give me!

RMZ

[Lel]

Hello rmz250moto, and welcome to the FICO forums.

Paying down your revolving utilization to 9% or less will give you a bump in score and the removal of your lien should help as well.  Whether this will lead to a ~70 point jump is unclear.  If you are able to get the lates removed, you should see a further increase, but the effect of late payments tends to diminsh over time so the score change might not so great.  Other than that, there isn't much else you can do to increase your scores.  Paying down installment loans don't often have a significant impact on FICO scores.  Pay your bills on time and don't open up any new credit accounts.  Be careful about request credit limit increases on your current CCs, because this could result in a hard inquiry that could affect your scores.

Your 92% LTV on your mortgage is going to be a sticking point.  Few, if any, lenders are going this high, unless it's with FHA.  If you're looking to refinance with FHA, then you can stop worrying about your credit score, because you're well above the typical minimum score needed to qualify.

Or am I understanding this 92% incorrectly?  Are you saying that your mortgage balance is 92% of the fair market value of your home, or that you've paid off 8% of the original principal balance?  If the latter, then what is your actual LTV?

[Anonymous]

Thanks Lel for the reply!  If I cannot get my credit score up I am going to go FHA.  You understood the 92% correctly, I am currently selling all my toys (motorcycles, boat etc.) and putting the money down on my mortgage (which is a 5yr balloon and I want a30 yr fixed asap).  Im really trying hard this year to get my finances on the right track, my wife hasn't worked in 3 years since our first son was born and it took an adjustment period for us with only one income and I would love this to reflect on my credit score . 

[Jazzzy]

I agree...pay your cc balances off. Only let one tiny balance show on one card each month and then pay that off as soon as the statement cuts.

Don't apply for any new credit.

Then...wait until the tax lien is gone...and hopefully the late payments. Only then will you know where you're at. You're doing everything right, so keep it up.

[Anonymous]

Update:

Just got the lein off my transunion and my score jumped to 757.  Still waiting for equifax and the goodwill letter results.

[Lel]

That's a nice jump!  Getting your CC util down might just get you to your 760 goal.

[Jazzzy]

Congratulations!

Hard work and patience certainly pays off.