Credit inquiries

Jan 172011
 

Have a quick question,

 

I’m looking to securing a home loan and purchase a house in the coming months.  Problem is my credit score is pretty borderline to getting any type of loan – 640.

I have 3 hard inquiries from 2/24/2010, 1 hard inquiry from 6/10/2010 and 1 hard inquiry from 9/7/2010.  I’ve researched around and blogs have been telling me that inquiries stop being counted against your FICO, 1 year after the date.  Is this true?  That being said, should I try to process my home loan credit pull on Feb 25th?  This would be 1 year after the date.  Or does it take a few days or months after the date to clean from your record?  I also heard that at 6 months, an inquiry becomes less of a factor which means I should really wait until March 8th (6 months after my last hard inquiry) to try for the home loan.  I love this site completely and would appreciate any info.

First Premier Updating Date Reported?

Dec 242010
 

Happy Holidays everyone!  I just had a quick question about First Premier.  I did a search on the boards and I read that the date of default should be what CRA’s go off of to determine when the CO will fall off of the reports.  This card I got back in 2005 or 2006, I know that it wasn’t 1/1/2006 though as they reported.  I defaulted on it after being unemployed for several months and that was around April of 2006.  

 

The CA, Arrow Financial is no longer on my reports.  FP  is reporting $0 balance with the CO.  Previously they had mid 2008 as ‘date reported’ which is when I assume they sold it to Arrow?  2 years after DoD.  Letters have been sent to FP to try and get them off my reports with no luck, they haven’t responded to any communications, they just hit up Equifax every couple of months for Account Information.

Today I get an alert from TrueCredit that there’s a change to my reports and log on to find that FP has updated the ‘Date Reported’ to 12/2010?  I have not agreed to nor attempted to make any payments to them as the balance is 0 and it is a CO on an account from nearly 5 years ago.  

 

Has anyone had anything similar to this happen to them before without the OC communicating with you?

 

 

 

 

Order of Debt Payback – Closed VS. Open Revolving Accounts

Sep 062010
 

Hey guys:  Just have a quick question, for all the experts out there ….  I’ve been surfing around this forum for a couple months now and trying to find the best ORDER that I can paydown my debt.  My FiCO scores among the big three (TU, EX and EQ) remains around the 670′s – I know sucks.  I’m trying to shoot for a 700 … so here’s the skinny.  I recently maxed out a lot of my cards in the past two years, now I am working to pay them off.

 

Have two open installment student loans, no mortgage, have auto loans on report that are paid in full.  I Have four revolving accounts, three are CC’s and one is a non-secured revolving line of credit that is closed by the bank, my balances are as follows:

 

CC # 1 $1000 of 5000 line

CC # 2 $6500 of 7400 line

CC # 3 $0 of 200 line (store card)

CC # 4 $400 of 1000 line

LOC – $9500 of 15400 line (closed account)

 

My revolving UR is 70%

 

I am going to have CC 1 and 4 paid off this month, when I did make payment on CC 4 they cut my credit limit to 1,000 from 5,000, which I know affected my CU.  I use CC#4 for monthly bills that I pay in full every month.

 

So would it be better to payoff first a closed line of credit (which reports a credit limit, but doesn’t seem to factor into CU according to EQ credit summary) or to concentrate on the open CC # 2 with a maxed out balance? Thanks :)

 

When will this baddie fall off?

May 202010
 

Hey everyone!

 

Just a quick question about the last baddie on my husband’s CR.. He has a 120 day late from 2003 for a citi cc account, it just states on his CR that it was closed by citi, PIF by my husband and 120 days late, it never went to a CA. The first month it went late of the 120 days was aug of 2003, will this fall off in Aug after 7 years or will it go 7.5 years?

 

I’m trying to figure out of I should leave it alone since it may fall off in aug or if I should start GWing them if it goes 7.5 bc we are going to try to refinance our house this fall and are working on our credit as much as we can. :smileyhappy: 

 

Thanks so much!!

Student loan (private) – collection

May 062010
 

Hello all,

 

I had a quick question on a private loan (not a gov loan) that was sent to collection.  I need some assistance/advice on what is the best option for me in terms of improving my credit score and for future home loans.

 

The collection agency told me I can join their payment plan and after 9 successful monthly payment, the negative mark will be removed from my credit.  Another option is to pay the amount but the negative mark will still appear.  Will paying the collection right away hurt my credit score and my ability to get an fha loan?  They stated they cannot settle (lower amount) and found the 9 month payment plan would be attractive as they stated it will be removed.  However, if I want to apply for a fha loan in the next 5-6 months, I don’t know if paying off the amount will hurt my score or my changes of a fha loan.

 

Any advice would be appreciated.

 

 

Income-Based Repayment Option

Mar 112010
 

I have a quick question regarding the new IBR plan and I was hoping someone could help me out with it.

 

I have about $100K in Fed Student Loan (75% subsidized and 25% unsubsidized) currently.  At an average interest rate of about 5%, I’m assuming the interest on the loan will be about $5000/year. 

 

Hypothetically speaking, if I take a job in the public sector making ~$40K/year and choose the IBR option, my monthly student loan payment will be approximately ~$300/month or $3600/year.  So if I’m understanding this correctly, this would mean that my outstanding balance will increase each year, resulting in my owing more than the original amount.  

 

So here’s my question: how does owing more than the original amount affect my credit score?  I read somewhere that it’s going to lower my credit score.  If this is true and I choose to stay in the public sector hoping to have my loan forgiven in 10 years, does this mean that I’ll have poor credit score during those 10 years?  

 

I hope that made sense.  

 

Thanks in advance.

 

 

Question about applying for new credit

Jan 242010
 

Hi quick question:

 

I have 4 HSBC cards that are now paid in full – in good standing ….I want to cancel them because of Annual fees and high interest rates, my question is,

 

When you pay off cards……How long should I wait before applying for new cards. I read I should try to get credit with other cc companies with no annual fees before canceling any cards I hold now. ( basically replace the cards I have now)

 

Please note my scores below.

 

Thanks