Majique

I need to go from 629 to 640 asap

Recommended Posts

Not sure where to post this because it falls under several categories, but here's my problem:

I need to refinance my house and my credit score has to be a minimum of 640 to do so. I have a score of 629. There was an NCO-medclr collection and a federal tax lien on my credit report. Both debts were paid; the tax lien was paid last year and the NCO debt paid a couple weeks ago.

The loan person said that they can do a rapid rescore, but he said it would probably be useless without removing that medical collection. The collection company said that it will appear as resolved but not actually be removed from my credit report.

Has anyone done a rapid rescore? Can I get this NCO thing off my credit? Anyone have any idea how I could get an 11 point bump through a rescore?

The lien wasn't totally through my own irresponsibility. I broke my back in Jan of '05 and ended up paralyzed. I had no way to handle these debts for several years. They're paid, but preventing me from moving on.

Thanks.

Share this post


Link to post
Share on other sites

Do you have balances on open, active credit card accounts?

The fastest way to get a score jump is to pay off your balances or to pay them down to less than 10% of your credit limit on each card. Credit utilization is 30% of the credit scoring formula. Only your record of payments is a higher percentage (35%).

I believe the rapid rescore uses the most recent reported data, so if you pay down the debt and then do the rapid rescore before it reports it won't help you. Make sure the new balances have reported first.

Share this post


Link to post
Share on other sites

I have zero credit card debt and haven't been late on my bills.

The loan manager said that I need confirmation from the collection agency that they won't report the collection anymore before they do the rapid rescore. He doesn't think the release of liens will be a big enough help.

I paid the nco collection and provided a receipt to the loan manager, but evidently that isn't enough to help the rapid rescore.

Share this post


Link to post
Share on other sites

I have a friend that is a mortgage rep. He told me as of a couple weeks ago the Feds lowered the score needed for a loan to 600.

Share this post


Link to post
Share on other sites
I have a friend that is a mortgage rep. He told me as of a couple weeks ago the Feds lowered the score needed for a loan to 600.

The minimum standard underwriting guidelines come from HUD for an FHA loan and from Fannie and Freddie for conventional loans.

Each originating bank/lender can increase the requirements for their own underwriting standards. For example, lets say FHA requires 600 as a minimum middle score; the specific lender originating the loan can specify 640 as a minimum middle score. They can not go below the min standard guidelines in any catagory unless the lender plans to portfolio the loan rather than sell the loan. Naturally, the loans are underwritten to meet the standards to sell the loan (either sell the loan or the servicing or both).

To the OP: are you going directly to a bank to refinace or to a mortgage banker or mortgage broker? It makes a difference for you as to what guidelines your lender is using.

OP, have you tried to contact NCO to see if they will remove the paid collection from your credit report? It's worth a try - NCO is a typical CA so you might get nowhere. Since you have no revolving credit lines its a little more difficult to get the score jumps. Paying the collection and submitting the paid receipt to the lender doesn't help with your score (as you know). Do you have a spouse that has better credit and a long term open revolving account with little to no balance for which you can be an authorized user? I have seen that work in the recent past.

Share this post


Link to post
Share on other sites
Guest
This topic is now closed to further replies.