CC or Loan? Best way to improve credit rating?

E78K · ‎07-22-2013

* If the answer is just to pay down the debt, please do not respond with that suggestion as it is what I am doing now. I am just looking to see if another option will help.

A few years back I was advised, ' to close credit cards and work off one or two as this will increase your score' as we all know that was dumb advice. My debt to income is now destroyed. My score went from 760s to around 625.

The only bad issues I have:

1. 60 day hit for missing payment back in 2010, this was paid in full.

2. I set up a payoff on an old car lease in 2010. Not realizing how it would affect my credit. I have since paid it in full as of 2011.

My cards:

NFCU card Limit 20k owe 16 k

USAA 16k owe 12k

I already own a home and two cars so I do not need to worry about that for a few years.

1. Consolidate with a loan, BTW my house appraised for 10k less than what I owe so home equity is not applicable.

2. Take one day and as mentioned on this site, apply for a bunch of cards in order to increase my available credit. I assume I will be denied for most cards and will have to try and request reconsideration of the application. Therefore I can hope to decrease the debt to income and boost my credit after the inquiries etc.. Come off the report.

Questions:

Are there any balance transfer cards out there?

Are there any lenders that help with this issue?

Is there a path to get the available credit?

Thanks in advance

parakleet · ‎07-22-2013

This post seems very familiar...

Edit: I see what happened - new thread started from another one.

Gardening since 7/16/14
Current: EQ 711 7/13/14; EX 724 TU 721 6/19/14
Goal: 760+

Rhaeny · ‎07-22-2013

Honestly I don't believe that you can do much of anything with util at 78%. But since you are with NFCU you just *might* be able to get an increase to improve your scores, however IMO I wouldn't try it because I would want to keep under the radar with just regular monthly payments. The advise you don't want to hear seems to be your best option.

kilj0y · ‎07-22-2013

I had about 80% util when I went from 4k to 25k through navys luv button.

@Rhaeny wrote:
Honestly I don't believe that you can do much of anything with util at 78%. But since you are with NFCU you just *might* be able to get an increase to improve your scores, however IMO I wouldn't try it because I would want to keep under the radar with just regular monthly payments. The advise you don't want to hear seems to be your best option.

Navy is not scared especially when you have a good past with them.

parakleet · ‎07-22-2013

Alright, I'll try to answer some -- I agree with the above poster about trying to get CLIs on your current card. OP - What is your current score? The Slate is a good BT card since it doesn't have BT fees right now.

Gardening since 7/16/14
Current: EQ 711 7/13/14; EX 724 TU 721 6/19/14
Goal: 760+

kilj0y · ‎07-22-2013

Also if you only have one card with Navy, you could also app for a second card to help boost available credit as well.

As you can see I am in love with NFCU as they have never told me no for any of the outrageous things I have asked of them. Treat them right and they will return the favor.

ezdoesit · ‎07-22-2013

The question I have for you is why do you need to improve your credit rating at this time? Are you planning a auto, house purchase in the near future? From reading you post it doesn't sound like it. If that is the case then just just pay down the debt and let them age amd your score will slowly rise. If you do need credit them as someone alluded to then your best bet might be to ask NCFU for a CLI. If you apply for credit you will probably be denied.

Rhaeny · ‎07-22-2013

@kilj0y wrote:
I had about 80% util when I went from 4k to 25k through navys luv button.
@Rhaeny wrote:
Honestly I don't believe that you can do much of anything with util at 78%. But since you are with NFCU you just *might* be able to get an increase to improve your scores, however IMO I wouldn't try it because I would want to keep under the radar with just regular monthly payments. The advise you don't want to hear seems to be your best option.

Navy is not scared especially when you have a good past with them.

Yes I agree that NFCU is not scared and is often very very generous to its members. But to put this into perspective, in order for OP to get for example util below 50% he would need another $20K in CL's. So it matters what debt you had dollar wise at 80% utilization.

A personal loan may work since I believe it doesn't count for util (someone please correct me if I'm wrong).

kevinjjc · ‎07-22-2013

What are the APR's? You might want to consider getting a bill consolidation loan. Best of luck to you!

austinguy907 · ‎07-23-2013

So, I would look into see if NFCU can open a NavCheck line for you which would decrease your UTL considerably. From the posts I've seen around here they tend to issue a CL the same as your CC.

Otherwise converting revolving CC debt to installment Debt aka Loan would improve your situation as well. The 2 cards you listed should have fairly decent APR's on them already. Might have to look into something along the lines of LendingClub for a personal loan due to the Equity issue. You should see a score jump as the balances / UTL go down over time. The quickest fix though would be opening a TL to offset the effects of the high usage currently reporting.