I am in the process of trying to get my scores up so i can complete a refi, and access the equity in my house, as my income fluctuates dramatically (I'm a film producer). A major issue seems to be that my 3 credit cards are all maxed out. The plan is to consolidate the debt in the refi, but there is something of a catch 22, since I don't think I can do the refi without paying off my cc debt. I'm in a cash crunch and really need to access the equty in my house. My scores are currently 667 on EXP, 589 on TU FICO (but two derogs coming off when investigation completes in 3 weeks) and EQ is showing 700, but that's cause everything is in dispute -- I think it will come in at around 640ish after this round of deletions. I think my scores would hit high 600s if I paid down the debt. Anyone know if mortgage lenders will overlook the high balances if the plan is to include them in the refi? Or have any other ideas of how to do it? What scores do you need for a personal loan? My derogs are all from MBNA platinum -- 5 30 day lates and 1 60 day late from 12/01. I also have a 6.5 yr old paid state tax lien.
My son has a score in the high 600, he just got approved for a personal loan by the bank. If you have a relative that may be willing to lend you the money for a couple of months to pay off the credit cards while you go through the refinancing, it will help. www.creditsense.com
Yesterday or Tuesday I posted about my home equity loan experience.....Both Citibank and Provident Bank approved me - my equifax and experian scores were similar, only due to high balances. I ended up going with Provident - they sent checks directly to a number of creditors and deposited the remaining in my account.
Another posisbility is a short loan from your IRA if you have one. I believe the rule is that if you repay it within 60 days, there is no adverse tax implication. But, a lot of people will tell you don't borrow from your IRA under any circumstances.
