Hey all - Like everyone else here, I'm working hard to try and get that old FICO score raised so I can get a good home loan. Here's the situation:
- all accounts paid and paid on time for at least 12 months
- paying off all balances to zero, then will go up to 7-9% if thats that sweet spot
- sent out GW's (today) to try and get lates and CA's off (been paid for years, various lates range from 2006-2011)
The problem is that my one Capital One card ($2500 limit, $1200 balance) got so far behind in 2011 that they restricted the account. On my CR it still shows the $2500 limit and correct balance, but the card is dead - can't use it. When I called they said they cannot unrestrict the card, even though I paid all the late fees, over the limit fees, and the balance down to current over a year ago. They did say they can recheck my CR and possibly open a new card and transfer the balance, but of course that will result in a hard inquiry (already have 3) and a new account (already have 2 within the last year). I'm afraid if I pay the balance in full that they will close the account, since its restricted and I can't use the card. I don't want that either, since it shows as a nice available credit (even though I can't use it.) My question is, what should I do to maximize my score? Pay it down to less than 10%? Open the new card and transfer the balance? Pay it off completely and let them close it? I really would like to buy a home this year, so it's important for me to maximize my score. I could care less if this CC is usable or not, I've got a Discover with a zero balance in case of emergencies.
Starting Score: 584 on 02/28/13
I've got a smathering of 30 60 90's from more than 4 years ago, 4 paid collections that are over 4 years old. Everything is paid and up to date. Most recent baddie is that darn Cap One and that is a 90 day that is 14 months old. Got GWs' out for the CA's and any account with a late. We will see I guess. My question had to do with that particular card and what do do with it.