I am working to rebuild my credit so I can get a mortgage, hopefully in less than a year. Scores: T-620 Ex-557 EQ-669 Problems: I was in an auto accident, unable to work and accrued legit medical bills that went into collection. 1. Outstanding Collection Accounts - I paid all but (2) and need to validate those debts. I am not trying to get out of a debt I owe, but need to verify the party trying to collect has a right to do so, and has not sold the debt to a 3rd party. 2. One paid debt showing not paid at Tu and Ex about $1,000.00 also medical. 3. One False Account - Asset Acceptance has a listing on Ex for an account that is not mine. I disputed with all 3 bureaus and Eq and Tu removed it, but Ex says it's verified. They have never contacted me in writing, and I do not take any unknown phone calls - ever. 4. No Revolving or other open Credit accounts - I pay with cash - now I see a bad idea. The rest of the report has closed credit accts and a 2 closed mortgage accounts with 2 lates over about 5 years, rest all fine. I applied for Targed and Dillard's cards in 11/2007 and was rejected because they say they couldn't verify my address. Whey I opened a Truecredit account - they tell me I need to open accounts, but I have been turned down and am afraid to generate more inquiries. What would be my best steps to get my credit cleaned up to the point I can get a mortgage? I do have the ability to pay the legit debts in full once they are validated. Are there any cards that they will give to someone with my scores? Thanks in advance for the help.
You can get a mortgage right now. You're scores are acceptable. You can always try to delete some derogatory information or amplify a few things in order to increase your scores. However, you can get approved now.
Thank you Apex...it's great to hear some encouraging news! I didn't think I would be able to because I was turned down for (2) department store cards in 11/2007. The reason they gave was that they were not able to verify my address and confirm my identity, but I thought that was an excuse. (I had moved and my correct address was not on the credit report they pulled). Does anyone know of any cards that I may be able to get to help build positive accounts?
You wouldn't want to open anything new right now insofar as it will reduce your overall history and by extension, your scores. You may consider being added as an authorizd user to someone's accounts. Ask a friend or relative. If that isn't an option, some companies offer the service but, be selective. A lot are scams. We do offer it but, so do many others. Again, try and get someone to do it for you for free. Make sure it's a Citi, BOA, AMEX, Discover, etc. Also, make sure it's at least about two years old, never late, less than 30% useage. If you don't have any open revolving lines right now, you may be able to get 70 to 80 points out of this. That would also mean a big rate reduction on a mortgage.
There are many fators that go into an approval for a mortgage; your credit reports and scores are only two of the many. But let's focus on them first. Have you done the "basic steps" yet (re: your credit reports)? It sounds like you've pulled all three reports and FICO scores. So, next dispute/correct any personal information like old addresses (more than two years old), names that do not apply, etc. Once that information is cleaned up, then start requesting "validation" of any accounts listed as "Collection Accounts". Dispute them with the CRAs right after requesting validation. Sample letters abound here on the forum for these two actions. Meanwhile, do a full review of your finances, and calculate what you can pay off in different categories, i.e debts you could pay immediately, over time & how long, etc. For those that you could pay now, request "Pay For Deletions", if anyone agrees, make sure you get the agreement in writing. On the plus side, you have time to work on these issues. Taking things step by step should improve your scores to where you could not only qualify for a mortgage, but you can get a better rate. Keep us posted on progress, and post any questions you may have.
Bizwiz and Apex - thank you. It seems so daunting at first. Thanks for the suggestion to get the pay for delete in writing. I paid one today over the phone, but will make sure to get the next one in writing. I have no other debt. If I get added as a user to a relative's card - I don't have to use it, do I? Could it have any negative impact for their score? I do not want to ask, but if it won't cost them anything and can help me, I will do so. DenverGirl
You're welcome. If you get added to a relatives card, no you do not have to use it. In fact, they do not actually have to give you the physical card. There will be no negative impact to their score, as you will not be using the card. It will help your scores tremendously.
Biz is correct. In many cases you don't get the card, and as long as you don't use the account you can't affect the account holder. Ask the relative to add you and have the card sent to them. Then they can just cut it up and never give it to you.
This point is critical! Make sure the account you get added to has good history. If you get added to an account with a negative report, then that will show on your reports as well. Make sure you do some checking first. Again, you want a "clean" history, and LOW utilization (% of credit used/available credit on card).
Thank you all! I am fortunate that I have a couple of close relatives with scores near 800 - that is why I don't want to risk their rating! Looks like I'm the black sheep... DenverGirl
I finally asked my Mom about being added to one of her cards - and she is willing to do so, as long as it will not hurt her scores. How do we go about getting me added? If she adds me to one of her oldest accounts (ALL of her accounts are both good and current with no balances) - will that be a benefit to me - showing a longer account history? How long does this process usually take, and how long until I may hope to see a jump in my scores? I was very close to applying for a mortgage, but pulled my TrueCredit score this morning and found a 50 point DROP in TU's score - for no reason that I can see. I got one neg. paid to the OC - and a CA is still reporting, though they have changed it to show paid. I did just send in a dispute about that - but they just got that and have not processed it yet. The only other change was in updating my address, but they didn't drop the old addresses - so the old TL's are still on the report (for good aging). Otherwise - no new pulls, and no other changes at all.
Sometimes it can be done online, sometimes your mom will need to call the credit card company. The older the account the better. Just make sure it is a company that reports AU's - not all do. Your scores will move up the moment the tradeline starts reportings. Scores are real time. Don't stress over True Credit scores. But this neg you just paid is probably the culprit. The paid date changes the DOLA and makes it look newer. I would pull a report directly from Trans Union and look for changes.
Thank you Jlynn! RE: AU - does Discover report? I know she uses that most often because it pays her back - and she pays it in full every month. How about other cards that report AU's?
