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HOW CAN I RAISE MY SCORE 40 POINTS IN 6 MONTHS?!!!!

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curlylox777
Established Member

HOW CAN I RAISE MY SCORE 40 POINTS IN 6 MONTHS?!!!!

 

1st off any and ALL HELP/ ADVICE IS GREATLY APPRECIATED!!!!!!  Smiley Happy

 

So, Here's my current financial picture:

 

2 revolving accounts-

 

                                 Cap 1 CC 320/500

                      Wells Fargo CC 7100/8100

 

1 installment loan-(only reporting to Experian?!!!!, I know??!)

                     Auto Loan 3200 balance

 

Length of Credit History average 3 years

 

Hurting my score- length of history/ high utilization/ and 1 30 late on 1 acct 2.7 years ago

I also have numerous credit inquires due to roll off in Nov/11 from previous auto loan shopping

          

 

Equifax  624 6/11

TU          645  7/11

Experian 671 7/11 (off experian site)

 

I have learned a tremdous amount from this site, and am truly very happy i am now a part of myfico as i have now put  my credit score as a priority. Never again making the financial choices i had in the past. The past is the past and i can only work from this point forward. I do realize idealy i should have a better mix of credit, and length of history, but unfortunetly this is not a present option as i can NOT risk losing any points in my score. EX: opening new line of credit, and /or any hard inquiries.

 

I will be shopping for New Auto Loan at the end of the year and will need to get approved for a $25,000 loan. No option for co-signer.

I definitly will have the auto installment loan paid off in full before applying for new loan. Along with that, my plan is pay off Cap 1 account with only a $15 balance remaining, and get my Wells Fargo CC down to at least 50% paying at least another $3000 off on that card.

 

Any other suggestions?? My (HOPEFULLY) realistic goal is to raise all credit scores to at least 660(lowest score) -700(current highest score)

 

I welcome any/ all advice, and TY in advance Smiley Happy

Message 1 of 11
10 REPLIES 10
MarineVietVet
Moderator Emeritus

Re: HOW CAN I RAISE MY SCORE 40 POINTS IN 6 MONTHS?!!!!

Hi there.

 

One thing that jumps out at me is your credit card utilization. FICO scores both overall and individual account utilization plus the number of accounts reporting balances at any one time so you are getting dinged for all of these.

 

If I ran the numbers right here is the utilization I come up with:

 

Cap 1= 64%

WF =    88% This one is probably being considered maxed out.

Overall utilization = 86%  This is costing you a lot of points.

 

The fastest way to raise a score is reducing utilization. Only you know how fast you can pay these down but that would be my first suggestion. Use every extra dollar you can find to pay these down.

 

If you can get added to someone else's account as an AU (Authorized User) this will help your credit length history but being an AU can only help you IF the account is older than any of yours (older than your current AAoA is even better), IF the payment history is long and clean, IF the utilization is very low, and IF it will report to the CRA's. Not all cards will do this. You need to ask the company first. You will inherit the entire history of this account. One caveat however; if this account starts to go south your credit will be affected as well. Keep that in mind.

 

Just my 2 cents.

 

 

 

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Message 2 of 11
LIGHTNIN
Senior Contributor

Re: HOW CAN I RAISE MY SCORE 40 POINTS IN 6 MONTHS?!!!!

 high utilization is really hurting your CS alot. Paying down the balances to have a low util is the fastest way to raise a CS.

50 % util is a good start,30 is better and 10 or less they say is ideally.

 

Keep paying the balances down and watch your CS go up.Smiley Wink

FICO's May 2015 EQ764 ~~Live below your means and always keep an emergency fund -Love Everybody ~ Big Kenny ~ Big and Rich ~~~~~Credit Scoring 101 - Common Abbreviations - Freq Req Threads - Free Credit Reports - What Steps Do I Take?DV? PFD?
Message 3 of 11
curlylox777
Established Member

Re: HOW CAN I RAISE MY SCORE 40 POINTS IN 6 MONTHS?!!!!

Thanks so much Smiley Happy Do you think it's possible to have a significant jump in my score by raising lowering my Utilization? My REALISTIC plan is to get it down to 48%

( so it's lower than 50%) by the end of the year.

Message 4 of 11
curlylox777
Established Member

Re: HOW CAN I RAISE MY SCORE 40 POINTS IN 6 MONTHS?!!!!

Thanks so much for your detailed response! Appreciate the time you put in to help Smiley Happy If I am NOT able to add myself on to another account as an authorized user,

do you see it as practical to have my score jump, at least min. of 20 points by paying down debt. Therefore getting my Utilization to below 50%. That is a realistic goal for me, to get it down to at least right under 50%. I am at the same time, going to be paying off my installment loan for my car 1 year early, and saving a min of $3000 for

 a decent down payment as well. I am taking on A LOT at once finacially......Thanks in advance

Message 5 of 11
MarineVietVet
Moderator Emeritus

Re: HOW CAN I RAISE MY SCORE 40 POINTS IN 6 MONTHS?!!!!


@curlylox777 wrote:

Thanks so much for your detailed response! Appreciate the time you put in to help Smiley Happy If I am NOT able to add myself on to another account as an authorized user,

do you see it as practical to have my score jump, at least min. of 20 points by paying down debt. Therefore getting my Utilization to below 50%. That is a realistic goal for me, to get it down to at least right under 50%. I am at the same time, going to be paying off my installment loan for my car 1 year early, and saving a min of $3000 for

 a decent down payment as well. I am taking on A LOT at once finacially......Thanks in advance


Going from 86% to <50% utilization has a real chance of gaining you that 20 points as long as nothing else negative pops up in the meantime. Let us know about your progress.

 

 

 

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Message 6 of 11
Anonymous
Not applicable

Re: HOW CAN I RAISE MY SCORE 40 POINTS IN 6 MONTHS?!!!!

I would say pay the lowest card down to zero and pay the other card down to under 30% to see the largest increase.

 

I paid down two maxed out credit cards 296/300 and 290/300 and saw a 37 point increase, but that differs for everyone, depending on the number of accounts you have - I only had 2 revolving accounts and was an AU on another account.

 

I would also like to point out that you shouldn't pay the installment loan completely off.  Pay it down to one payment right before you purchase your other vehicle, because if you do, you will no longer have a mix of credit.  About a year ago we paid off an auto loan (our only installment account) and our score dropped 26 points.  You could let the lender know that you will pay the last payment prior to signing the new loan.

Message 7 of 11
BlkQueen
Established Member

Re: HOW CAN I RAISE MY SCORE 40 POINTS IN 6 MONTHS?!!!!

Idk if opening a secured card is good advice. That would also lower your utilization and it would report ontime payments for 6 months

Message 8 of 11
curlylox777
Established Member

Re: HOW CAN I RAISE MY SCORE 40 POINTS IN 6 MONTHS?!!!!

Great Advice! I will def pay off my Cap 1 account this month and see if it makes any difference, Balance is about $330. My other revolving account has a balance of 7100/8100. That one, not as easy, I will do my best to get down as much as possible. 

Also, thanks for the advice regarding my installment loan. I previously posted a question regarding that exact topic and don't think people understood. I had figured/

assumed my best bet is to NOT completely pay off the loan because , as you said, it would no longer appear an "active" installment loan. I will plan to pay off all but one payment, leaving it active. I appreciate you clarifying

that as i can not afford to loose even one point at this time. 

 

One more question for you? Comparing to your personal situation at the time.....do you see it as realistic fthat i will get approved for a New Car Auto LOan for $25,000?

Backround:

Along with my credit picture mentioned in my original question, I have lived at same residence for 5 years, been at same job for 4 years, and make about $65k annually.

 

Thanks so much in advance!! Smiley Happy

Message 9 of 11
Booner72
Senior Contributor

Re: HOW CAN I RAISE MY SCORE 40 POINTS IN 6 MONTHS?!!!!

I don't think you'll get that much of a jump to get to 48%.  I think you should shoot for less than 30% if you can.  Good Luck!

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Message 10 of 11
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