FHA Loan and credit score
Posted 25 July 2012 - 01:31 PM
EX removed via the phone most of the disputed items. TU started the process and EQ was not much help so I mailed them. The Lending Officer (LO) advised that my scores came in at 630. EQ is my lowest. I have heard that if I get my score to 640 the LO doesn't need to worry or care about some of the items on my report. I was thinking I can take care of a small unpaid collection that shows on EQ today for $200. I tried to take care of it in the past but the collection company wouldn't send me anything in writing. I just received a settlement offer for 50% though.
Should I bother paying this to attempt to improve my score? Purchasing a house we have a lot of expenses but I thought this could be low hanging fruit as far as score improvement goes.
I've also heard that if the disputes are on items that are paid and closed that it doesn't matter? Is this true? It seems both lenders I am working with are concerned about the disputed items and all but two of mine are paid/closed.
Thanks for any help you can provide. My wife and I are excited to be homeowners again (especially since our house will be larger and our mortgage will be the same as rent!)
Posted 25 July 2012 - 01:37 PM
My LO suggested I add a CC to improve my score so I went out and got a Kohls card. Now that I've been reading about the difference between store cards and bank cards though I feel that may not help. I applied for a Barclays but was declined due to my charge offs and no recent credit history. I sent a recon letter. The only other avenue I can think of in regards to a cc is to open a secured card. I really don't want to spend too much money right now if I don't have too though. I also have 3 recent HP's from mortgage companies and 2 on each CRA for cc's so I want to limit any more HP's. I also do not want to get one of the cards that has a sign up fee, annual fee with a limit of $300 and starts with $150 in fees.
Posted 25 July 2012 - 03:45 PM
In MY opinion, I would be VERY cautious paying an old collection if they arent requiring you to. It is very possible it would hurt your score, I know this is counter intuitive but it definitely happened with me, and it looks like you are already borderline on scores. I think opening another card would only be beneficial if you were either able to get a higher limit (above 1,000) and/or you have a few months to let them age before you buy. I say this because opening another card(even secured) could also lower your score in the short term. (Too many new accounts)
So basically to me it boils down to, if you have to buy this month don't touch anything they don't require you to pay for closing. If you have time on your side, you might try for a decent card, try Navy or someone who is known to be generous with CL's even with a less than perfect report.
Posted 25 July 2012 - 04:48 PM
I called the new collector on the old Kay Jewelers account and have a faxed offer to settle. It's Resurgent Capital and the debt is now owned by LVNV. I am very familiar with LVNV. So, now my concern is if I do not go through with paying this could show as a new collection. I think I screwed myself into having to pay the collection either way. I can dispute the collection because the company that originally reported it no longer owns it and probably doesn't care. I know for certain though LVNV will report the collection if I do not pay. Ugh!
I did a projected score with opening a new bank card and my score increased by 10-20 points. I did another one with a department store card and it dropped by 10 points.
Posted 27 July 2012 - 04:37 PM
Posted 30 July 2012 - 09:22 PM
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Posted 30 July 2012 - 09:24 PM
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Posted 01 August 2012 - 11:13 AM
as for paying accounts, this WILL make your credit score go down, unless it is deleted. when talking to creditors be tough and know your rights! reporting to the bureaus is 100% elective, they have the right and the power to remove, and if they don't there is no reason in the world for you to pay them. who can afford to spend money to make their credit rating lower?!?
Posted 01 August 2012 - 11:16 AM
will take roughly a month and a half after getting the card to have it show up on your credit though
Edited by CAdamsRP, 01 August 2012 - 11:17 AM.
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