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CreditCurious20

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  1. It wasn't my intent to be argumentative at all, and I am sorry that it came off that way. Sometimes it is difficult to predetermine how you come off in internet prose. The other's poster focus was paying down the unsecured debt. My focus was on minimizing any damage to a refinance application. The goal wasn't to say that the other poster was wrong or that I was correct, but rather, I wanted to show a different angle so that the OP could think things through and decide what is best approach for her based on her unique circumstances. There are still a lot of facts and for her to decide for herself. @hegemony - I'm sorry if I came off as being snotty. It honestly wasn't my intent.
  2. If the amount of savings from the refi is enough to put a serious dent in credit card debt, then we are talking about a decent rate cut and/or reduction in mortgage insurance. If she used her existing Discover BT 0% offer, then she would have 11k at 10.9% and 17k at 9.9%. Even if she waited 6 months to allow time for the closing (which is longer than needed), the amount of interest paid should be dwarfed by mortgage savings. If not, why would a refinance even be on the table to begin with? As a general matter I agree 100%. I only suggested it as a possibility because it appeared she had a viable plan for quickly paying down the debt and because of her expressed goal of obtaining the lowest rates long term. Fair enough - there is variation by lender, but usually at that level you are in prime territory. I also agree regarding the necessity of mortgage FICO scores. As I suggest previously, she should definitely get this information sooner than later and certainly before taking any action. Inquiries + reduced average age of account + many new trade lines showing up right before a closing
  3. Yes the utilization is hurting, but her posts suggest that her FICO 8 scores are 745-750. FICO 8 tends to be more punitive on credit utilization than the FICO score models used in mortgage lending. In other words, she may very well be at or very lose to 760 usually used in mortgage lending as the cut-off for prime rates. If she can get there quickly and close on the house, she should absolutely refinance before opening any new accounts or doing hard inquiries. The interest paid on $30k short term will likely be dwarfed on the interest on her home over a long period of time especially if the balance on the mortgage is large. As soon as the house closes, she can then apply for the 0% BT options. Another possibility if the LTV, DTI, and scores align is to take out $30k in the refinance and pay off the cards. She can then take the savings and pay down the new mortgage faster. My concern is that mortgage lenders will not be happy with several newly opened accounts and a large number of hard inquiries. Focusing on the interest on the credit cards short term rather than thousands of dollars savings on the home may be a case of "penny wise pound foolish."
  4. And I would balance transfer the Amex card to Discover. Is there any chance that some of your existing lenders would offer you CLIs without a hard pull? If so, that is the best way to drop utilization quickly.
  5. Five inquiries is easily a 15-20+ point hit. I would avoid that if trying to refinance a mortgage. The OP doesn't even know the relevant FICO score model being used. My FICO 8 is considerably (~50 points) lower than older FICO scores used in mortgage lending. FICO 8 is more punitive on credit utilization IIRC than the early FICO models; however, all models are similarly punitive for hard inquiries. By opening new accounts or adding hard inquiries, the OP may hurt herself more than help. We need to know what the relevant home lending FICO scores are to give good advice. The prime score is usually 760 or above; however, LTV and income are also big factors. She posted one score is 750 and another 745. If her mortgage FICOs are near that, she doesn't have much to pay down to bump up her score by another 10-15 points. Any extra money could pay down the mortgage and lower the LTV possibly getting a lower interest rate and/or dropping mortgage insurance (if the OP has it). After the house is refinanced, then she can work on knocking down debt.
  6. I should also ask, what is being reported incorrectly? I don't want to jump to conclusions.
  7. You originally made it sound as if you only disputed it with the OC. If you have disputed it with each bureau, and they refuse to update it, then the FCRA comes into play. I would send a written letter to any bureau incorrectly reporting it along with Credit One's letter acknowledging the problem and the correct status. Send it by certified mail with return receipt requested. If they refuse after that, if the conduct violates the FCRA, and if you have incurred damages, you can sue them. The FCRA also provides for reasonable costs and attorney's fees for willful non-compliance, which may make it easier to find a consumer protection attorney to take your case. There is no need to go it alone.
  8. You need to file a dispute with each bureau that is reporting incorrectly. Send copies of the Credit One letter. Until then, there can be no FCRA liability for the bureaus.
  9. Vantage scores from Credit Karma mean nothing. Ditto for FICO 8 in this context. Most lenders use FICO 2, 4, or 5 depending on the bureau. Ask your prospective lender which version they use for each bureau and order all of your FICO scores from myFICO.
  10. You should negotiate trade line reporting as part of your settlement agreement. Is the account beyond the SOL? How old is the account? If the loan is old and time barred, what would be the advantage of even settling unless the trade line is also deleted?
  11. Congratulations! On another note, unless they are running a hard check (unlikely since they already do soft checks every month) or charge for a CLI, why do they ask if you want to accept it? Why would anyone turn it down?
  12. Ask the credit union for a letter confirming that the card was paid off and has a zero balance. Forward it to the CA and CRA and alert them the claim was satisfied. I'm hesitant to suggest sending the CA a settle agreement as giving additional information, including if it was assigned prior to settlement date just creates new layers of chaos. If the CAs continue collection activities after that, sue the CA and CRA again. A JDB claims as assignee and stands in the original creditor's shoes. If there was a problem with the sale that is between the credit union and the JDB. The settlement extinguished any assignee's claim. As it stands, you can sue the credit union for breach of contract and sue for specific performance of the settlement agreement.

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