“Credit Scores Improved, but Not Enough”
Good Afternoon Joe,
We would like to revisit the purchase of the rent to own option that we are in right now. This would be a VA Guaranteed Loan. Purchase price if we close before May 1st would be $185,000.00 after May 1st it would be $190,550.00. We have added credit accounts to our credit report and I have worked with a credit repair company for 6 months in order to get some things cleaned up. I believe we are on the cusp of making this happen. Please review our credit profile and let me know what you think you can do.
When I originally reviewed this client’s credit his scores were in the low 500’s. I made a number of recommendations. The first was to settle his current outstanding obligations and unfortunately, he didn’t do any of that.
I also suggested that he set up a few new secured credit cards, which he did and paid off the balance or close to the remaining balance each month.
Here is the problem, when you make your payments as agreed on your new cards on time, but you have a bunch of unpaid obligations on the credit report that aren’t getting paid and the creditors are reporting that information to the credit bureaus each month, you are getting nowhere fast. The bottom line, the scores don’t improve very much.
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