“I’m Working on Cleaning Up My Credit” — What That Really Means and What to Actually Do
"I'm working on cleaning up my credit."
We have heard this sentence more times than we can count. And after 28 years in the mortgage business, we know exactly what it means. It does not mean someone has a plan. It does not mean they have taken action steps. It almost always means they saw a house they loved, got excited, called a lender, and are now scrambling to fix something they have been ignoring for years.
This post is the honest conversation most loan officers will not have with you. Ken Turkington has been having it for 28 years. It is time to put it in writing.
What "Working on My Credit" Usually Actually Means
Here is the truth that nobody in the mortgage industry will say out loud: most people who say they are working on their credit are not working on their credit. What they are actually doing is hoping that if they call enough lenders, someone will eventually tell them they are fine as is — and they will not have to do any real work or spend any money right now.
That is not a criticism. It is human nature. Fixing credit requires confronting uncomfortable financial realities, making phone calls you have been avoiding, and sometimes writing checks you did not want to write. It is easier to keep shopping for a lender who will say yes than to do the work that actually gets you to yes.
What We Actually Find When We Pull the Credit
When someone tells us they are working on their credit and we pull a tri-merged credit report, here is what we almost always see:
Old collections — unpaid debts that have been sitting on the report for years, often forgotten or ignored, dragging the score down every single month they remain unresolved.
Past due accounts — accounts that are currently delinquent, not just old history. These are the most damaging items on any credit report because they are active and current.
Late payment history — a pattern of paying late that tells lenders this borrower has a track record of not meeting obligations on time.
No positive active credit — nothing currently open and in good standing that demonstrates the ability to manage credit responsibly right now. Old paid accounts help, but active ones matter more.
The Timeline Nobody Wants to Hear
Here is the other honest thing we tell people: when someone calls us and says they are working on their credit and want to buy a house, they want to hear they can do it in two months. The real answer is almost always 12 to 18 months — if they start doing the right things today.
That is a hard thing to hear. Especially when they have already found the house they want. But delivering false hope does not get anyone into a home — it wastes their time, delays real action, and often makes the situation worse.
The cost of waiting is real. We have watched people kick this can for years. Some have been renting for a decade while home values ran away from them. Think about what someone who was "working on their credit" in 2019 missed by not buying in 2020 or 2021. Think about what someone who was "working on their credit" in 2001 missed by not buying before 2006. The financial cost of delay is not abstract — it is measured in equity they never built and appreciation they never captured.
What Actually Moves the Needle — The Real Action Steps
Not all credit improvement strategies are equal. Some things people waste months doing that make almost no difference. Other things can move a score meaningfully in 30 to 60 days. Here is what actually works:
Pay Off Derogatory Accounts First
Past due and delinquent accounts are the most damaging items on your report — and paying them off is the single fastest way to move your score. Not collections first. Not old history first. Current past-due accounts first. This is the highest-leverage move available to most people in this situation.
Lower Your Credit Card Balances
Credit utilization — the percentage of your available revolving credit that you are using — is one of the biggest factors in your score. If your cards are near their limits, your score is suffering for it. Getting balances below 30% of the limit on each card can move a score meaningfully and relatively quickly.
Establish New Positive Credit
If you have no active accounts in good standing, open one or two. A secured credit card — where you deposit $500 and get a $500 limit — is the most accessible starting point. Use it for small purchases and pay it in full every month. After 12 months of perfect payment history, it becomes a meaningful positive on your report.
Get the Real Picture First
Before you do anything, you need a tri-merged credit report — the same three-bureau report a mortgage lender pulls. Not a free online credit score. Not a Credit Karma estimate. The real report with all three bureaus, showing every account, every collection, and every derogatory item. You cannot build a plan without the real data.
The Collections Question — Should You Pay Them or Not?
This is one of the most common questions we get — and one of the most misunderstood topics in personal finance. The honest answer is: it depends. And anyone who gives you a blanket answer without looking at your specific report is not giving you real advice.
Why You Need the Tri-Merged Report Before Taking Action
Different collections have different ages, different balances, and different impacts on your score. Some old collections are about to fall off your report entirely — and paying them could actually restart the clock. Some collections are with original creditors who can negotiate pay-for-delete agreements. Some are with debt collectors where the strategy is completely different.
Taking action on a collection without understanding exactly what it is and how it is affecting your score is how people make expensive mistakes. The tri-merged report tells us what we are actually dealing with — and then we can build a real plan with real action steps specific to your situation.
This is also why the free credit score services are not enough. They show you a number. They do not show you the detail behind the number — and the detail is where the real strategy lives.
What the Score Actually Costs You in Real Dollars
Credit scores are not just numbers. They translate directly into the interest rate you pay — and the interest rate translates directly into your monthly payment and the total cost of your loan over 30 years.
✓ Score 680+ — Strong Mortgage Position
⚠ Score Below 680 — Real Cost Difference
That 0.75% rate difference costs $177 more per month — and over $63,000 more in total interest over the life of the loan. The credit score is not just a number. It is $63,000.
The Secured Credit Card — How It Works
For someone with no active positive credit, a secured credit card is often the fastest path to establishing a credit history that lenders can actually use. Here is exactly how it works:
- You deposit money — typically $500 — with the card issuer as collateral
- You receive a credit card with a limit equal to your deposit
- You use it for small, regular purchases — gas, groceries, a monthly subscription
- You pay the balance in full every single month — no exceptions
- After 12 months of perfect payment history, you have a meaningful positive tradeline on your report
- Many secured cards convert to unsecured cards and return your deposit after 12-18 months of good standing
The key is discipline. The secured card only helps if you treat it like a debit card — spend only what you have, pay it in full, never miss a payment. Used correctly, it is one of the most reliable credit-building tools available.
The Honest Conversation We Are Now Comfortable Having
— Ken Turkington & Kirk Chivas, Co-Founders, First Commerce Financial | Combined 60+ years in mortgage lending
Early in our careers we were careful about how we delivered difficult news. We worried about the reaction. We softened things more than we should have. We have gotten over that.
When someone calls us and says they are working on their credit, the most helpful thing we can do is tell them exactly where they stand — not where they want to be, not where they hoped to be, but exactly where they are today and exactly what it will take to get to where they want to go. Whatever they heard before apparently did not help. So we try something different: the truth.
The people who take that conversation seriously — who pull the tri-merged report, understand their actual situation, and start taking real action steps — those are the people who close on a home 12 to 18 months later. The ones who keep shopping for someone to tell them they are fine as is are still renting.
We are not trying to be harsh. We are trying to be useful. There is a difference.
The Credit Repair Roadmap — What the Next 12-18 Months Looks Like
Get the Real Picture
Pull a tri-merged credit report. Not a free online score — the real three-bureau report. Understand exactly what is on it, what is hurting the score, and what the actual action items are. This is not free — but it is the foundation of everything else.
Address the Derogatory Items
Pay off current past-due accounts. Work through collections strategically — not randomly. Lower credit card balances below 30% of the limit on each card. Open a secured credit card if no active positive accounts exist.
Build Positive History
Pay every bill on time, every month. Use the secured card for small purchases and pay it in full. Watch the score begin to move. Pull an updated report to see what is changing and what still needs attention.
Build Momentum
Positive payment history compounds. Each month of on-time payments adds weight to the positive side of the equation. Score movement accelerates. Start having real conversations with a lender about what programs will be available and at what score threshold.
Ready to Buy
For most people who take real action steps in month one, this is the realistic window for being in a position to purchase. Not two months. Not six months. Twelve to eighteen months of consistent, disciplined action. It is not fast. But it is real.
What to Do Right Now
If you are reading this and you recognize yourself in any of it — call or text us. Not to get pre-approved. Not to start a loan application. Just to have the real conversation about where you actually are and what it will actually take to get where you want to go.
We will pull the tri-merged report, go through it line by line with you, and give you a specific action plan based on your specific situation. No generic advice. No false hope. Just the real picture and a real roadmap.
That conversation is free. The credit report is not — but it is the most important $50 you will spend on your path to homeownership.
Call or Text Ken or Kirk Directly
Not a call center. Not a junior loan officer. Ken or Kirk personally — the same people who will handle your mortgage when you are ready. Get the real conversation now so you are ready to move when the time comes.
📱 (248) 459-5511Call or text — Ken and Kirk answer directly | Licensed in MI, FL, AZ & TX
First Commerce Financial | Licensed Independent Mortgage Broker | NMLS #137512 | AZ MB #1001354 | Licensed in Michigan, Florida, Arizona, and Texas | Ken Turkington NMLS #137873 | Kirk Chivas NMLS #160828
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