There are many different criteria that are evaluated affecting your credit score. Just a few are: amount of open credit, (either too much or not enough), late payments, number of recent credit enquiries, Number of reporting credit entries, and on and on. For your refinance, they will be looking most heavily at your debt-to-income ratio, any equity you have in the property, and then your credit score. They use these to develop a risk evaluation on your ability to repay their loan timely and completely. With a year to go, there are things that you can do to improve your debt to income, reduce the number and amounts of credit lines you have and place yourselves in a position to get a better deal on your refinance product for your home.

The best way to do all of that is to get with a proper financial coach that can show it all to you. Even if he/she does not have a product that will immediately help, you will get a plan for debt stacking that will hurry up your improvement. If you would like more details IM me and I will be glad to help you with more detailed information or get someone that, while not trying to SELL you anything, can offer you more applicable, pertinent advice.

BrownSugar,

The truth is . . . the 24 months is what matters. . . if you expect a refinance with the tightening of credit that is going on in America, you need to make sure the 24 month period the potential lender looks at is spotless AND that you address and pay-off old collection items.

You can try to ask EACH creditor for a pay-for-deletion arrangement which you must send in writing and send via certified mail to the collection agency. Do NOT talk over the phone about these matters.

If they agree to it in writing when corresponding back to you (and have signed the letter), then send the collection agency the payment as promised.

Then forward a letter to the credit bureau requesting deletion of the collection item. Enclose a copy of the “agreement letter” AND a copy of the cleared check as proof of the truthfulness of your claim.

Once these collection items are removed from your credit report, you should see a rise in your FICO score.

And of course, continue to pay ALL bills on time, without exception.

A form letter for this pay-for-deletion arrangement is contained in the link.

Are you carrying credit card balances? Pay down the credit cards to below 30% of your credit limit. Paying them off completely is even bettter. This will improve your debt to availble credit limit ratio.

They are going to look at more than two years. Work on settling those negatives. Start with the newest one and work backwards. You should really concentrate on clearing up as much as possible. Your scores are pretty iffy for a new mortgage.

Hi,

It’s very much possible with the credit score. Try to explore different options. Checkout for some useful info and tips on handling the situation. Good luck!