How much are you putting down? If you are getting a FHA home loan you will be able to get the very best rate with a 691 score. The interest rate will likely not improve even with a 800 score vs. 691. The only reason I would obsess in getting the score higher is if you want to get a 5-10% down conventional loan. For those loan you will generally need a 720+ score (and a 41% back end debt-to-income ratio). The interest rates are generally not any better with conventional loans than FHA Loans. The only difference is with a conventional loan you avoid the 1.75% up front mortgage insurance that is rolled into the FHA Loan.

I think you are doing all the right things and I commend you for taking great care of your credit. How long ago did you get the collection? It sounds like the only thing that will improve you score is the passage of time, making that paid collection older and older.

Hi, PV (great User ID, LOL)


The collection being less than 7 years old possibly raises a flag. A good Lender may be able to advise you on how to get the score up.

The Credit Score that you receive, whether from Equifax, My FICO, Experian, or Transunion, may be completely different than the Credit Score that a Mortgage Lender receives on you. Different scoring models for different loan purposes and other reasons, etc.

Have you asked a Mortgage Lender to pre-approve you for a loan, and has the Lender pulled your score? You may want to speak with a Lender about pre-approval for a Mortgage. They can advise you.

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Best wishes,
Fred
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...I didn't have room to finish. As I was saying, if the collection is weighted and has lesser impact, wouldn't that alone have had a positive impact on my score? And if I was misinformed and it is not weighted, what type of jump should I expect in my score next year?

My length of credit history is longer, fewer inquiries than before, no new iquiries or accounts, total debt-to-icome has been reduced.

I mean I am doing all the right things that I know to do!!!! What else is there???

I can either pay down more on my auto loan or save more for potential downpayment or "new stuff for a new house" fund. I'd rather keep that money. The auto loan isn't going anywhere.

With my revolving credit I have 5 accounts total, only one with a balance, and the balance is $121 on 5000.00 limit. How dangerous can that be?

I can't change the length of my history. Only time will change that. I have no time machine to erase that collection. The status is PAID on it though and it's been so long ago.

My actual credit history is a beautiful thing except for that collection. I don't mean to rant to you readers but I'm a little discouraged knowing that in 4 months my score didn't budge. If you have any advice to offer I would really appreciate it.

Kind regards, CW

I am a credit consultant for many across the country need review entire report, "snap shot" does not assist, many factors come into play.

Contact my office schedule a telephone conference.

National Featured Realtor and Consultant, Mortgage Loan Officer, Credit Repair Lecturer
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