07-30-2012 10:16 AM
So I've been rebuilding my credit for the last 2 years. (The goal is to buy a home).
I had a mortgage broker pull a credit report for me the last week of May.
My "Middle" credit score was 610.
The mortgage broker informed me that I need a 620.
Since then, I've paid the last account I had that was in collections.
This increased my score to 617.
I am currently disputing a judgment (that was paid off) and hoping it gets marked as paid.
I am also disputing the 4 paid collection accounts (all medical) in hopes they get removed.
I really don't know what else to do.
Any way I can get this score bumped up??
07-30-2012 10:19 AM
What do your credit cards look like right now? Are you carrying a balance? On how many cards? How much of your available credit have you used up?
Depending on your utilization percentage, you might see a bump by paying off/down credit card balances.
07-30-2012 10:27 AM
Yeah, paying that down will help a LOT.
How many credit cards do you have?
Wisdom around these forums says pay all cards except one down to zero, and let that one card report a small balance (less than 10% of that card's credit limit).
When it will help your scores depends on when your cards report to the bureaus. Generally, they report on your statement date (when you get your bill).
As long as you pay before you get your statement, you should see a very nice improvement a couple days after your statement date.
Generally, Experian will update first, followed by Equifax, and then Transunion (the slowest). It could take about a week after your statements cut.
You *should* get quite a bit more than 3 points, if you can pay off your credit cards off as close to that formula as possible.
07-30-2012 10:30 AM
I have 4 credit cards.
2 with a limit of $350
2 with a limit of $500.
So if I pay them all off (today) and keep one at 10%, will this be reflected on my next credit report (assuming the credit cards updated on my credit report)?
Or will I need to do this for several months?
07-30-2012 11:11 AM
07-30-2012 12:47 PM
Well, it depends on when you are trying to get credit.
Pay those off today. Then let your statements cut. So you'll have 3 credit cards with a balance of $0 on the statements, and one with less than 10% (I recommend letting one of the $500 cards report less than $50).
That will be reported to the credit bureaus. This is the best equation for applying for credit.
Let's pretend all your statements cut on the 5th of August. You check your credit report ont the 12th of August, and see that all of them have updated. That would be the ideal time to apply for credit.
If you let your cards report high balances in September, your scores will drop again. But if you pay them off the same way, they won't drop.
You don't have to do this for several months to see a gain in points, you just have to do it when you plan on applying for credit.
Does that make sense?
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.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com 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.