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fergud09

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Credit Help! Need to buy house using VA loan but my credit sucks! Details follow....
Here is my dilemma. So when I pull my scores myself I show a 581 with Experian, 573 with Equifax, and 653 with Transunion. When I had my mortgage lender pull they were 732 Experian, 523 Equifax, and 531 Experian. What the heck, right?!? I want to buy a house. I went thru a divorce 4 years ago in which my ex took out a bunch of credit cards and payday loans online and maxed them out and didn't pay a dime back. I didn't have the money and didn't want to bother with court. So right now I have 11 accounts in collections which total around 6g. All of my current loans and credit card that I have are on time, no late payments. What can I do to bring my score up? Should I pay off the collections agencies? And if so, I should settle for a lesser amound as I have heard from anyone. If I do this how long do you think it would take for my score to go up enough to get me a home loan? My pre tax income is about 85g. any help advice or info is appreciated!! Im tired of paying someone elses mortgage payment!!

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What did the lender say? Usually they average the three, and if that average is 620 or up (640 or up for pre-manufactured homes), you're golden. Unfortunately, yours comes to an average of 596-ish... There are some VA lenders out there which will work with a score that low, but be prepared to eat a higher interest rate in return. 
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If you do pay off the collection agencies, I'd start with one or two, and try to arrange for a 'pay for removal' where they remove the derogatory remarks in exchange for an early payoff of the debt. 

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Otherwise, you're going to have to give it time (as in a couple of years at least.)

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When are the accounts due to fall off your reports? 7 year rule.

If it will be a while, do some reading on "pay for delete agreements".

For the best benefit to your credit you want the collections removed.

Sometimes disputing collections will get them removed too, if they are showing incorrect information or if the debt collector doesn't have all their paperwork and proof together, so that may be an option too.

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