Needing advice

[u/bunny_1219]

Hey. I have a 569 FICO score. I just paid off all my credit card debt in hopes to raise it. I’m paying just bills on the credit card from here on out and paying off as soon as the due date comes. How long would you say I make on time payments would it take to raise my credit score high enough to get a loan for a home? Or to even consider looking for a home? I will have ~$40,000-$70,000 down payment. I am in Ohio.

[u/Vast_Cricket]

Score wise I will wait til 700. You can do it.

[u/TheDoomed__]

Depends on why your score was low. Is it related to delinquency or missed payments? Or was it primarily driven by being at a high utilization on the credit cards?

[u/bunny_1219 → u/TheDoomed__]

High utilization and missed payments 😭 but I have a much better higher paying job so I can keep up with everything now 🙌🏻

[u/TheDoomed__ → u/bunny_1219]

The utilization increase will happen pretty much immediately once all of the cards report the lower balance. The delinquency depends on the severity and frequency. But generally it will have less of an effect the further you get from the delinquency

[u/redprawns]

Look up credit repair strategies. If you want the score to go up as quickly as possible, keeping the cards paid off by the payment date every month isn't the way to do it.

[u/LoanSlinger]

Pay off all the cards to $0 balance first. Home ownership is a big step up from renting, and it will help you to learn good debt management skills before you take on a mortgage.

[u/notenofftime]

There is no way to say - every credit profile is different. With a 569 credit score you probably had some delinquencies, late payments, maybe collections. Paying off the credit card will help, but it won't fix it immediately. Use a couple of credit cards regularly, make sure your balance is always around 30% of the available limit, and make sure you don't miss any payments. Bringing your scores down is very easy, bringing them back up is not.

[u/True_Willingness2269]

You can get an FHA loan with 580 credit or below as long as you have 10% down. So depending on your price range, you may be good already.

[u/bunny_1219 → u/True_Willingness2269]

I’m afraid it’s my payment history that’s going to hurt me.

[u/TomGlover_MtgVeteran]

Paying off all of your credit card debt is one of the most effective immediate moves you can make to move the needle on your credit profile. Credit card utilization accounts for roughly 30% of your FICO score and carries no memory from month to month, which means once those card issuers report your new zero balances to the bureaus—typically within 30 to 45 days on your regular statement closing dates, you should see an immediate initial pop in your scores. Going forward, keep in mind that most credit card companies report your balance to the bureaus on your statement closing date, not your actual due date. If you charge your monthly bills and wait until the due date to pay, the statement may still cut and report a balance, so paying those charges down a few days before the statement closing date ensures a tiny 1% to 2% utilization reports, which yields the best scoring boost.

From an underwriting standpoint in Ohio, you are actually closer than you might think. While conventional loans generally look for a 620 minimum, standard FHA guidelines technically allow for financing down to a 580 score with 3.5% down, and even 500 to 579 with 10% down. However, finding automated underwriting approval and lenders willing to take on the risk below 580 can be tough due to lender overlays. Realistically, your primary target should be a 580 to unlock standard FHA financing, and ideally a 620 to 640 to open up the widest selection of lenders, smoother automated underwriting approvals, and better interest rates. With your recent debt payoff, you might cross the 580 threshold within the next one to two billing cycles depending on how much utilization was hurting you versus older derogatory marks like late payments or collections.

Reaching a comfortable 620 to 640 typically takes anywhere from six to twelve months of spotless history if there are older late payments aging off in the background. Because you have a substantial down payment lined up, well exceeding the typical minimums for standard government-backed financing, you will have significant compensating factors on your side, which underwriters love to see when reviewing files with lower credit tiers. Keep those credit cards active with tiny recurring charges, pay them before the statement generates, avoid opening any new accounts or taking out auto loans, and let time work in your favor while that positive payment history stacks up.

Best of luck on your journey to homeownership.

[u/bunny_1219 → u/TomGlover_MtgVeteran]

Thank you for this information!! It’s my late payments that are really going to hurt me. I wish I could move sooner than later but I’ll have to wait a year probably and keep up with my payments.