I'm hoping to get some pointers on how I can boost my score a bit over the next few months to get a better interest rate. My husband and I were recently pre-approved for an FHA loan. Great news. However, when the credit letter came back with my middle (Equifax) score at 644, I was not pleased. We have just started the home search process, so I have a little time. Back in January my husband and I co-signed on a car loan. At that time, my score was 704 (TU). Around the same time, I was also approved for a Chase card with a $10,900 limit. These new accounts have hurt my score a bit, as my TU score is now 679. Not much I can do about that now. But what can I do to get these scores up a bit? Some info: CU: $2,571 used of my $60,700 credit limit (4%). We pay the balances every month, but they're usually around this amount. Debt to Credit: $58,129 of $86,587 available (33%) - this debt is only from the car loan My last 30 day late was in 2007, other than that I had a few in 2006 and 2005 (due to a divorce/move) Average age of accounts (this came up as the fourth negative factor on my report): 6 years, 3 months The negatives: -One closed account from Wells Fargo/Raymour & Flanigan (furniture) in 2007. It was paid and closed, with the notation that it was closed at account grantor's request. My only 60 day late is on this account, back in 2005. -Two unpaid medical collections on my account, for small amounts ($207, $215). These were for DOFD's in 2007 and 2008 -One unpaid collection from a utility (Cox Communications), for $81. The DOFD is 2007, but the collection date shows as assigned 7/2011. I think the DOFD is wrong. -One judgement (satisfied) from 2006 that will fall off this December Anything I can do about these negatives? Here are some options I've come up with: 1) I can have my husband add me as an AU to his credit card (I'm on the others already). I am pretty sure the card is from 2007, so not sure if this will help me much other than boosting my credit limit by another $8K. Does FICO look at Debt to Credit ratio or just CU? 2) I am on the mortgage with my husband after our refinance last year, but this is not reflected on my credit reports. Is that a good thing or a bad thing? Payment record is perfect. 3) Not sure what to do about those medical collections. I read about the HIPAA process, but I'm not sure I have the time for it. I'm fine with PFD, if that's possible and attempting this doesn't kill the HIPAA opportunity. 4) I disputed the Cox collection on Equifax, because I am pretty sure the DOFD is incorrect. Thinking I'll try PFD if it comes back verified. Sound good? Any other options I am missing? Thanks!
Re: What's my best approach for fixing credit report issues in time for a home purcha Keep in mind the standard disclaimer, that very few people here are lawyers, and nothing is being provided as legal advice. I am not a lawyer, and I don't play one on TV. One thing that happens, as they're trying to come up with constructive feedback, some of the changes may seem trivial... Average age of 6.25 years seems like it should be a positive, and it is, they're just reaching to come up with 4 traits that will help adjust your scores... That one will go up a bit each month... Last 30 day late is 5 years ago, the one in 2005 should be falling off sometime this year, and the 2006 one will fall off next year. The WF should fall off this year, what is the DoFD being reported as? That month this year is when it should fall off, but I would look closely for any incomplete, inaccurate, or unverifiable data in the tradeline to see if it can be disputed a little bit early, maybe it can be nudged off a little bit early. Check to make sure that the medical accounts are truly listed as medical, if not that's a HIPPA violation that you can use as leverage. How a CRA reports the medical varies on their reports, but there should be an explanation in their 'key'. If it has the MEDICAL flag set, only YOU can legally see the information about the OC, because disclosing the OC on the report that someone else sees would be a disclosure of your protected health information. The OC, CA, and CRA could all be held liable for that unlawful disclosure. Cable bill, unless I think the DoFD is 2006, or 2005, I would not want to argue an inaccuracy on the DoFD, because that would allow the tradeline to stay there longer, instead of falling off in 2014. 1) Can't hurt as long as the account is positive. 2) As long as the payment record is perfect, it would be good for the mortgage to show on your credit report. 4) see above...
Re: What's my best approach for fixing credit report issues in time for a home purcha There is another way to give yourself a quick boost in your credit score. Add positive history to your credit report. Ask a family member or friend to add you as an authorized user to one of their existing credit card accounts. Make sure they have a perfect payment history and can maintain a low balance (10% or less of the credit limit). The longer the payment history and the higher the credit limit the bigger the boost will be. Thanks! Heather with BoostMyScore.NET
