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Trying to raise my credit score by Jan 2016
I recently talked to a mortgage broker who I recently allowed to pull my credit because I would like to purchase a house. Anywho he informed me that my median score was 536 and that I needed to raise my score by at least 100-150 points before I will be able to start looking at a mortgage loan. I have 2 collection accounts on my credit which are less than 24 months that I have recently paid off but my score has not been updated as of yet. Another thing is that I have multiple student loans that are deferred until 2021 and any other debt that I have are paid and closed. One of the collection account will be deleted by the end of the month and the other they said will be paid closed with a $0 balance. They informed me that they can not ask the credit bureau to remove the debt because they don't have the authority. However when speaking to the broker he did not tell me what I could do besides paying off the collection accounts to increase my credit score? I was told that I needed to get 2 secured credit cards to drastically raise my score by Jan. Would this help me to raise my score so that I can be approved for a mortgage loan no later than Jan or Feb??

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Top Contributor
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Paying off a collection will not yield much, if any scor increase.  Always carefully resaerch before addressing derogs.  You need to aim for removal of derogs.  If you have not paid you have the leverage to negotiate a pay-for-delete.  At this point all you can do now is a goodwill request and they are under no obligation to comply.

Don;t rely on your mortgage broker for credit repair info -- that's not the mortgage broker's speciality.  Do your own due dliligence and use appropriate tools for your research.

Top Contributor
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As already mentioned, send the company that says they don't have the authority (which they absolutely do) to pull the account from your reports goodwill letters asking for removal of the account. Sometimes it may take many attempts and many different company reps to get one that will grant your request. If you currently do not have any credit cards then you definitely want to consider getting 2 or 3 and make sure that they are cards that report to all three credit bureaus.


Tips for rapid credit building: 1) clean as much negative information from your reports as you can 2) lower utilization rates on any current accounts 3) get some current positive lines of credit going asap 4) get added as an authorized user on someone's card that has a long history to help increase the average age of your accounts 4) Be patient and realistic, while it is possible to gain that many points in that short of time, it may be difficult. It would be better to set your sights for 1 year of building so you don't set yourself up for failure and take some stress off of yourself. Continue to read and educate yourself on the best way to handle credit. Finally, be sure to pay attention to what your FICO scores are doing, don't base your actions on Non-Fico scoring systems as your mortgage lender will most likely use a version of FICO.

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