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Possible to raise score enough in short amount of time?


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A family member is trying to get a home loan and has very poor credit. She needs a 600 median score and currently has a 523. We were able to pull 2 of the 3 reports online and she has 20 to 30 collections, etc, on each report, the majority of them medical. If we dispute the none medical on line, send the Whychat dispute on the medicals to the CRA's I assume a few of these will be removed. I can also add her as on authorized user to a credit card to help as they currently have no cards or really any good accounts showing.

 

Is there any chance to get a 77 point jump with the above plan, or would it be a long, hard fought fight to get the reports cleaned enough to hit the 600 mark? If there is little chance of success rather quickly, I don't want to add them as an authorized user for no reason.

 

Thanks!

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With 20-30 marks on their credit I highly doubt even with a 600 they would get past UW. Remember most mortgages require resolution of most items withstanding on your CR. In addition if you app a mortgage you'll also bring out ALL the hiding debt collectors. I'd suggest you tell your family member that she should start working diligently now and she might be passable in a year or so.

 

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I'd suggest you tell your family member that she should start working diligently now and she might be passable in a year or so.

+1

 

everyone wants a quick fix

 

but they don't exist.

 

credit repair is a long process.

 

she's a long way from a mortgage.

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I'd suggest you tell your family member that she should start working diligently now and she might be passable in a year or so.

+1

 

everyone wants a quick fix

 

but they don't exist.

 

credit repair is a long process.

 

she's a long way from a mortgage.

 

 

+1, mortgages are usually the hardest credit product to obtain due to the tough UW scrutiny.

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FHA requires a 500. Most lenders require 620, but there are many lenders who will take as low as a 580 for max financing (96.5%) or 560 for 90% LTV. I happen to work for one of those places.

 

She was trying to get a Rural Housing Loan (USDA). Mortgage broker said he could get her approved if she had a 600 fico. If some of the collections come off, I don't believe there would be much score difference is 15 collections compared to 30??? I know that 77 points is a lot, and did not want to go through the authroized user process if there is little chance of getting the score up enough (within the next month or so). Below is the report card from a credit monitoring site; showing 0 years credit history, so I know that adding a card with around 8 years history would help, but just probably not enough??

 

 

 

Credit Card Utilization

N/A

 

Payment History

A

 

Age of Credit History

N/A

 

Total Accounts

B

 

Credit Inquiries

B

 

Derogatory Marks

F

Edited by L321
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In A month? No way in hell. Like mentioned above a 600 is not game over. She would still need to get through an uw and they would want collections to be resolved.

 

Also the lack of current credit is bad as well. They usually want at least 12 months of history. Just an Au does not count for that. There other ways to show history such as on time rent receipts.

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The fact that she has 20-30 collections and no current revolving credit makes her about as Un credit worthy as possible. There's no one in the world that's going to UW a mortgage on someone that has been unable to manage at least ONE credit line. I don't know why anyone would think they could handle a mortgage all of a sudden.

 

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She needs to start credit repair AND add some tradelines in her own name ASAP. There is no way IMO that she will qualify within the next several months, even if she does get most of her baddies deleted.

 

Most mortgage UWs will ignore AU accounts and may even ask that they be removed. I wouldn't bother adding her, and if you do, don't actually give her a card or access to your accounts.

 

I would highly recommend directing her to CB so that she understands herself what she needs to do to fix and build her credit.

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The fact that she has 20-30 collections and no current revolving credit makes her about as Un credit worthy as possible. There's no one in the world that's going to UW a mortgage on someone that has been unable to manage at least ONE credit line. I don't know why anyone would think they could handle a mortgage all of a sudden.

 

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I wouldn't go that far. People change and situations change. However, you are right as far as an UW is concerned. As the corporate world likes to think; past performance often predicts future results.

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The fact that she has 20-30 collections and no current revolving credit makes her about as Un credit worthy as possible. There's no one in the world that's going to UW a mortgage on someone that has been unable to manage at least ONE credit line. I don't know why anyone would think they could handle a mortgage all of a sudden.

 

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I wouldn't go that far. People change and situations change. However, you are right as far as an UW is concerned. As the corporate world likes to think; past performance often predicts future results.

In her current state I'm saying. If she in fact manages her collection's and establishes a history of managing credit. She will be fine.

 

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I honestly do not think there is any way possible this is going to happen for your friend in that time frame.

 

I agree. It will take at least a year of building some positive lines and that long to manage the baddies before doing a pre-app for a mortgage.

Edited by funkiehouse
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I honestly do not think there is any way possible this is going to happen for your friend in that time frame.

 

I agree. It will take at least a year of building some positive lines and that long to manage the baddies before doing a pre-app for a mortgage.

 

 

+100

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