Rentals in Gwynn Oak>Question Details

DENISE, Renter in Windsor Mill, MD

In attempting to clear negative accounts off my credit report, which one should I start with: Revolving or Installment accounts? Thank you!!!

Asked by DENISE, Windsor Mill, MD Thu Feb 7, 2013

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Stephen Webber’s answer
Hi Denise
I will suggest to not do anything until you select an experienced ethical loan officer who works for a lender that offers all of the loan types. especially if you are a first time home buyer. Its common to make wrong moves on credit. Even paying a past due account down can hinder the rating. The loan officer will ask to see the credit report. They are the most effective becasue they work with credit and home loans which have different credit requirments, Check out Your-Road-Home.com. Your will find an artilce in the Credit section that will help and also the artilce, Consultation,Interviewing Loan Officers. Your loan officer and real estate person are your key people so select carefully. Gather lots of information before you make your choice. Many helpful articles at Your-Road-Home. You have access to agents through Trulia so can be a good source. Beware of credit agentcies. Many games going on. Good Luck!
3 votes Thank Flag Link Thu Feb 7, 2013
Thank you!
Flag Thu Feb 7, 2013
Hello Denise,

I would recommend you speak with Justin McKee of Continental Credit - 303 495-5936. justin@continentalcredit.com.

He is an expert with getting items deleted off of your credit report for specifically increasing your credit scores. In some cases, if the debt is old, you may not have to pay the debt in order to get it deleted off of your credit report!

Some items weigh more heavily on the credit score than others.
You definitely want to speak with an experienced loan officer or credit repair person before attempting to mail any payments in on delinquent accounts as this could actually negatively affect your credit score. Also, you want to be careful closing accounts because this could negatively affect your credit score. There is a science to who and how you pay off delinquent creditors, so I advise to take caution and check with Justin McKee before proceeding.

Sincerely,

Catherine Purcell

Senior Mortgage Loan Officer
Over 25 years of Real Estate and Mortgage experience
focused on educating my clients so you can make an informed decision that best suits your needs!
Fairway Independent Mortgage Corporation
200 High Street 5th Floor
Boston, MA 02110
Cell: 202 573-6035
Office: 617 456-1700
catherinep@fairwaymc.com
http://www.fairwayboston.com

MLO# 194172 FIMC NMLS# 2289
1 vote Thank Flag Link Thu Feb 7, 2013
Many thanks Ms. Purcell!
Flag Thu Feb 7, 2013
Stephen gave you some good things to think about also. The answer I received was a little suprising.
He said it didn't really matter one versus the other. You want to clear up the more recent ones if possible, they are hurting the score more than older ones. It's hard to know for sure without reviewing a credit report. ]Hope this was at least a little helpful and let us know if you have any questions.

Thanks,
Brent Mendelson
Senior Loan Officer
1ST Mariner Mortgage
O-240-235-5314
C-301-412-0259
F-240-235-8236
Bmendelson@1stMarinerbank.com
Lending in all 50 states
nmls#111407
1 vote Thank Flag Link Thu Feb 7, 2013
Thank you for your advice Brent!
Flag Thu Feb 7, 2013
Denise,

I have a different answer. I think revolving is more important to clear up. Unless it's a mortgage that's late. NOTHING can be worse than a late mortgage payment. Interesting question. I am going to email my credit bureau contact and ask him what he thinks. I'll let you know the answer.

Thanks,
Brent Mendelson
Senior Loan Officer
1ST Mariner Mortgage
O-240-235-5314
C-301-412-0259
F-240-235-8236
Bmendelson@1stMarinerbank.com
Lending in all 50 states
nmls#111407
1 vote Thank Flag Link Thu Feb 7, 2013
Hi Denise,
You should get all accounts current but negatives on installments such as car notes and mortgages carry more inpact than a credit card to your credit score. Landlords tend to also put more weight on installment accounts than they do on revolving account.

You can impact your credit score greatly by getting all accounts current and paying down revolving debt to below 50% of available credit.

Late payments will take time but your score will improve as the late payments get older .
1 vote Thank Flag Link Thu Feb 7, 2013
Pay your bills on time. Late payments can hurt your score significantly. If you have missed payments, get current and stay current. The more you pay your bills on time, the better your score.
Keep credit card balances low relative to credit limits (30 percent or lower is recommended). "Maxing out" your credit cards means you have a very high utilization rate, which significantly lowers your credit score.
Pay off debt rather than moving it around.
Open new credit accounts only as needed; new accounts decrease the average age of your total accounts. Having accounts that have been opened a long time increases your credit score.
Avoid closing credit card accounts because this also decreases the average age of your accounts.
Apply for installment loans (mortgages, car loans, etc.) within a 30-day period because most credit scoring models will count multiple inquiries within a short period of time as only one inquiry.
Your credit score is presented as a number that can fall within a range — usually from 350 to 850. However, some credit scoring products use different ranges — such as 501 to 990. If you obtain multiple credit scores and the same range was not used, you cannot directly compare the scores. For example, a credit score of 720 within the 350 to 850 range is not the same as a credit score of 720 using the 501 to 990 range.

Joel Lobb (NMLS#57916)
Senior Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*
http://mylouisvillekentuckymortgage.com
0 votes Thank Flag Link Fri Apr 12, 2013
I am not clear on what you mean by “attempting to clear” if you are paying off collections it doesn’t really matter what kind they are, every lender has a threshold, mine is $1,000. Other lenders might be as hard as zero or no outstanding collections up to as high as $3,000, although I haven’t heard of anyone going that high recently.

If you are asking about disputing negative information on your credit report in order to qualify for a mortgage, that is not legal and mortgage fraud is the Fed’s #1 hot button, so don’t do it! They already have everything in writing, very easy to nail you. Good luck,

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
Web Reference: http://jamessimms.com/
0 votes Thank Flag Link Thu Feb 7, 2013
BEFORE you pay anything on either, talk to a lender that is experienced in credit repair. Sometimes when you pay, it actually hurts your score if not done in a particular way. Let me know if you need the name of a great lender to help you with this.
:)
0 votes Thank Flag Link Thu Feb 7, 2013
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