Credit Score

Persistence Pays: A Reader Fixes Her Credit Just In Time

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It’s like a punch in the gut: You think you are approved for a mortgage, then your loan officer tells you there is a problem with your credit report.

That’s what happened to our reader, Opal, who was in the process of buying a new home that was being built for her family. She had been preapproved for a loan and was looking forward to finalizing it when she got bad news. Her loan officer had obtained an updated credit report and discovered her score had dropped.

There were two problems: One was old collection that had been sold to a new collection agency and resurfaced on her reports. “We got the old one deleted by calling the company, but the new one will not budge,” she explained. The other problem? Her family had moved in with her mother while waiting for their home to be completed and a bill slipped through the cracks, resulting in a 30-day late payment on her reports.

Opal quickly saw her dream house slipping out of her grasp. Her new credit score was a 615 and she needed a 620 to get the loan.

[The Credit.com Forum: Your Credit Questions Answered]

Free Tool: Credit Report CardShe wasn’t about to give up, though. First she asked the creditor for a “goodwill” adjustment to her account. She pointed out that she had an otherwise perfect payment history with them for several years. They said they would consider it but that it would take up to 30 days to decide.

She didn’t have that long. So she kept trying. She send faxes and emails, and continued to make phone calls.

Finally, she says, she had success: “I happened upon a very understanding  and helpful person.” That person contacted the credit reporting agencies and sent an update instructing the late payment be removed and told her a confirmation letter would be mailed to her.

[Credit Score Tool: Get your free credit score and report card from Credit.com]

She was ecstatic as she shared her update with us:

My loan officer called me at 6:12 this evening to happily inform me that my loan would now proceed, after I obtained the letters and documentation from the credit card (issuer), and the one collection agency that they would remove the negative information from my credit reports.

With that documentation in hand, her loan officer was able to use “rapid rescore” to quickly update the information on her credit report. Her score was now 647; and that was high enough to qualify for the loan.

“We are closing on our house September the 26th!” she wrote. “We are so happy. I feel as though I owe your blog a great big thank you! as it gave me a lot of information as to how to help my credit.” We’re of course thrilled that Opal found the information she needed at Credit.com to improve her credit, and also that she was willing to invest the time and effort to make sure she got the loan she needed.

Opal’s advice to others in similar circumstances?

“Keep trying, don’t ever give up. It may take a bit, but eventually you find someone who is understanding and not a machine!”

[Featured Products: Research and Compare Mortgage Rates at Credit.com]

Image: Jeremy Noble, via Flickr

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  • http://Credit.com Elizabeth C. Egnew

    Thank you for your helpful service — looking forward to learning more!
    Sincerely,
    Elizabeth and Family

  • http://Credit.com Elizabeth C. Egnew

    Again, looking forward to learning more — with thanks, Elizabeth :-)

  • Ruby Valdez

    When I pay off all my debtors will it give me a higher credit rating fast.
    Want to purchase a house soon, really soon. Want the best rate on a loan.

    • Gerri Detweiler

      Maybe, maybe not. It depends on what factors are contributing to your scores. Have you gotten your free Credit Report Card from Credit.com yet? If so, what factors are showing lower grades? (Keep in mind the number you see will probably be different than what the mortgage lender pulls, so don’t focus too much on that.)

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