For many borrowers, the path to homeownership feels overwhelmingly uncertain when credit challenges stand in the way. Mickey S was connected to CredEvolv by his mortgage loan originator at CrossCountry Mortgage (CCM) when his 592 credit score prevented him from qualifying for a conventional mortgage.
Mickey already had steady income, strong motivation, and a strong desire to purchase a home. But having a lower credit score meant the financing options available to him would come with higher interest rates and more expensive loan terms – and a higher price tag than someone with better credit.
In fact, Mickey was already working with his loan officer on an FHA loan application – but he wanted to improve his situation so he could eventually refinance and make his homeownership more affordable.
Through CCM’s Total Expert CRM, which includes the CredEvolv platform as part of its integrated suite of tools, Mickey’s loan originator seamlessly connected him to CredEvolv within his normal workflow.
His loan originator gave Mickey a path forward to improve his situation – rather than simply leaving him with the higher long-term cost that often comes with lower credit scores.
That warm introduction created a clear next step.
After receiving his free initial credit evaluation, Mickey signed on and steadily worked through the Success Plan created specifically for his situation and goals by his counselor – all while having an accountability partner to coach him through to success.
Mickey’s Starting Point: a credit score below conventional mortgage readiness
When Mickey first began working with his credit counselor, his scores looked like this:
- TransUnion: 592
- Equifax: 607
- Experian: 610
While these scores showed promise, they were still slightly below the level many lenders prefer when evaluating borrowers for conventional mortgage approval.
His credit reports also revealed several factors affecting his credit score, including:
- Collections and charge-offs impacting payment history
- High credit card balances affected his DTI
- Limited installment credit history
- Recent credit inquiries related to loan applications
Building a success plan for credit improvement
Mickey worked with his credit counselor on his personalized Success Plan, which was designed to strengthen his credit profile over time.
His plan centered on a few core actions, while meeting virtually with his coach each month:
Reviewing credit reports: He verified debts, requested debt validation where needed, and disputed inaccurate information across Equifax, Experian, and TransUnion to ensure his credit reports were accurate.
Addressing existing debts: He reviewed accounts tied to a debt settlement program and worked with creditors to better understand balances, repayment terms, and potential resolutions.
Lowering credit utilization: A major focus was paying down balances on his credit cards – particularly his Capital One account, to keep utilization low and strengthen his credit profile.
Building consistent payment history: By using his Discover card for small purchases and paying balances on time each month, Mickey established a pattern of responsible credit use.
Together, these steps helped strengthen his credit profile and move him closer to conventional mortgage readiness.
His credit scores started moving in a positive direction
Mickey followed his success plan and stayed engaged with his credit counselor, and in no time, his scores began to move in the right direction.
Over time, his updated mortgage credit scores reached:
- TransUnion: 613
- Equifax: 629
- Experian: 643
Mickey’s middle credit score eventually reached 629, surpassing his original target score of 620 that had been set at the beginning of the process.
With a stronger credit profile in place, he was able to improve his overall financial position – putting himself on track to qualify for more favorable loan terms and a potential refinance into a conventional mortgage in the near future.
The Outcome: An opportunity to refinance – better credit makes homeownership more affordable
Mickey’s journey shows how powerful the right combination of lender support and credit counseling can be. CCM additionally kept Mickey’s loan originator top-of-mind with him as he worked with his counselor, by implementing ongoing communications within Total Expert.
He received the right plan, guidance, and consistent effort, to strengthen his credit and position him to refinance into a conventional mortgage with better loan terms in the near future – ultimately making homeownership more affordable for Mickey.
CredEvolv’s network of support
CredEvolv’s platform marries a precise combination of technology and human touch. We call it our high-tech + high-touch approach. It’s the not-so-secret sauce that gets a borrower from declined to crossing the finish line.
In Mickey’s case, he had a team around him that lifted him to victory. From the first mention of CredEvolv by his lender; to his actual connection to CredEvolv via Total Expert; to the work he did with his nonprofit credit counselor; and the continual support of his lender along the way – Mickey had the perfect support system in place to help him reach his ultimate goal of improving his financial situation to qualify for an eventual refinance and more affordable homeownership.
THIS is how we improve the experience for lenders and borrowers alike, and ensure every borrower has a path forward.
If you’re a lender who wants to learn more, book a demo.
If you’re a borrower (or anyone with a goal) who wants to improve your credit situation, book your free consultation.