Posted on: 10th Sep, 2010 11:23 am
My husband and I will be paying off all three credit cards and all collections within the next 30-45 days. How soon will our score go up? We are trying to apply for a VA new construction loan and would like to secure financing this fall. Also, he just received a promotion on his job that will more than double his salary, will this help us get the loan that we need?
Well, cocoabella, you didn't mention where your scores are at current, nor what constitutes your credit file. Frankly, what debt you have now and what debt you'll continue to have are going to be major factors in the increase of your score. That you are paying off collections at this time is not all that beneficial, inasmuch as they're collections in the first place. Of course, eliminating the debt is a favorable thing - don't get me wrong. But do you have any other continuing obligations...such as loans, credit cards, etc? If you don't, you'll find it difficult to bump your scores with any speed. Payment history is a major factor in scoring, and if you have no open debt on which you can show payment history, it'll not help you in your quest.
An increased salary will, no doubt, help in the obtaining of a new loan, but there's so much more to it.
An increased salary will, no doubt, help in the obtaining of a new loan, but there's so much more to it.
I have not done a three score check in a couple months, but they are in the 620's at last check (we are applying for a VA loan) These are really old collections from a relocation and my subsequent inability to find employment. We have paid off two cars and have just one auto loan. That and two small credit cards (balances under $600 each) are our only ongoing debt at this time. No bankruptcy or anything.
Hi cocoabella,
It is good to note that you're paying off your debts. This will have a positive impact on your credit scores. However, it will take some time to reflect. As far as I know, with a credit score of 620, you'll be able to qualify for a VA loan.
Thanks
It is good to note that you're paying off your debts. This will have a positive impact on your credit scores. However, it will take some time to reflect. As far as I know, with a credit score of 620, you'll be able to qualify for a VA loan.
Thanks
Thank you all for your help! I will keep you posted on my progress.
I'm a little late to the party here, but wanted to note that I'm gratified to see that your scores are where they are at present, and to encourage you to continue working toward building them. It's all about the payment habits, after all...if you lapse on those, it'll do more damage than inquiries, high balances, etc.