saint_123

Home loan company says your score cannot improve even in a year

5 posts in this topic

Hi folks - You saved me last time with some good advice around dealing with debt collectors. Now, I am back seeking advice on rebuilding my credit - namely because I need a home loan in a relatively expensive area and my current score does not qualify me for anything reasonable. The report they pulled and compiled is attached.

The loan company says they've simulated the scores out till Dec 2017 but they do not budge (refer to attachement). I am surprised because, I have relatively little recent debt and most of the other stuff is about to fall off anyways (eg, discover, rent recover, ga power, etc.). 

What, if anything can I do to nudge this score higher - credit cards, secured lines of credit, removal of recent activity, anything!

I've been foolish in the past (helping others without being cautious) and been bitten by medical bills more recently. But I need to get my credit and my life together.

Ask me if you need more information. Thanks folks.

CReport_for_home_loan.pdf

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Having any amount past due will make it difficult.  Your best bet is to remove all those collections.  If that is not possible them paying them so they show $0 is the next best thing.  If you can wait for them to fall off, that will help.

When I was planning on applying for a Mortgage, I used arbitration on most of my derogatory accounts and became aggressively pro-active to get them removed.  It took me about 18 months to clean everything up.

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29 minutes ago, fisthardcheese said:

Having any amount past due will make it difficult.  Your best bet is to remove all those collections.  If that is not possible them paying them so they show $0 is the next best thing.  If you can wait for them to fall off, that will help.

When I was planning on applying for a Mortgage, I used arbitration on most of my derogatory accounts and became aggressively pro-active to get them removed.  It took me about 18 months to clean everything up.

Completely understand where you are coming from. The part I do not understand is the way the loan rep phrased it: I have discussed with the lady in credit department. She has simulated your scores with all collections removed, and it still does not change your score through end of 2017...

I was hoping to prioritize payments based on his recommendation on loan and instead he came back with....no you can't do anything. Why should I/shouldn't I believe him?

 

I have added a credit card recently, along with a $3K line of credit and that has helped some...but I need to be well in the 700s I suppose...

 

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3 hours ago, saint_123 said:

The loan company says they've simulated the scores out till Dec 2017 but they do not budge (refer to attachement). I am surprised because, I have relatively little recent debt and most of the other stuff is about to fall off anyways (eg, discover, rent recover, ga power, etc.). 

You have 16 collection accounts reporting and late payments.  Two of the biggest score killers.

3 hours ago, saint_123 said:

What, if anything can I do to nudge this score higher - credit cards, secured lines of credit, removal of recent activity, anything!

If you want the best mortgage rates then you have to either remove or take care of all 16 of those accounts or wait for them to fall off.  

2 hours ago, saint_123 said:

I do not understand is the way the loan rep phrased it: I have discussed with the lady in credit department. She has simulated your scores with all collections removed, and it still does not change your score through end of 2017...

That is probably an educated guess on her part but I can tell you that she is probably basing it off the fact that it is a marathon not a sprint dealing with the stuff like this.  Unless you have a large amount of money to pay all the debts off at once then you have to chip away at it and slowly over time between dealing with them and paying on time you should see a gradual increase in your credit score.  However, what she is telling you that even if the score improves it likely won't be high enough for them to approve a mortgage for the amount you are seeking in the area you are looking at.

2 hours ago, saint_123 said:

I was hoping to prioritize payments based on his recommendation on loan and instead he came back with....no you can't do anything. Why should I/shouldn't I believe him?

He is partially right.  What they are indirectly telling you is that they will not underwrite you.  You are probably going to have to find another lender.

2 hours ago, saint_123 said:

I have added a credit card recently, along with a $3K line of credit and that has helped some...but I need to be well in the 700s I suppose...

For the best mortgage rates you need tier one credit which is in the mid-high 700s.  STOP opening new credit.  It decreases your average account age which causes more long term damage.

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4 hours ago, saint_123 said:

She has simulated your scores with all collections removed, and it still does not change your score through end of 2017.

Who knows why they said it this way, but I wouldn't pay any attention to it. Get your credit cleaned up and come back then to try again.  You have several options for lenders so if the same one won't budge, move along to another one. 

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