Credit Card Center Advertiser Disclosure

New Visitor
Posts: 1
Registered: ‎12-14-2012
0 Kudos

Trying to reach my goal - what would give me best chance?

I have been through a tough stretch but things are getting better slowly and I'm looking into purchasing another home but I need some advice.

Here is my situation:

Current middle credit score is about 540. Goal by next December 700!

Last late payment December 2011 - 30 days late.

perfect on time payment since.

High credit utilization 99%

1 collection account 8 K USAA credit card.

income around 73K (DH is 85 so combined 158K)

I own a condo never late on mortgage.


I want to get rid of the collection account and pay down all my credit cards to 1 to 9% but wondering about the order that I should do things. I have $6K in cash right now and Intiially I was thinking to try to settle the colection account hopefully for 50% but then I realized that if I took that money now and paid down the current open credit cards that I could reduce my monthly payments by at least $200 and I would see an immediate jump in my score. I am hoping to buy by December 2013 and I wont have another lump sum to settle the collection account till at least July 2013 when I get my disbursement so what should I do?  If I settle now I'll have 12 months since settle ment by the time I apply for the mortgage...if I wait then only 6 months till I apply but on the other hand if I tackle my debt now immediate jump in scores and lessenign my monthly expense for the next 6 months. what shoudl I do? Everything else is pretty much in line same employer for the last 6 years, good mortgage payment history, like I said a couple lates on credit card debt last one 1 year ago but will be 2 years by the time I apply.  I've had a rough patch due to complications during pregnancy and childbirth which left me taking LWOP.

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.