Help with improving scores in a short time

[Anonymous]

I have about 4 months before I will be attempting to purchase a new vehicle.  Right now my Fico8 scores range from 675 - 688 depending on reporting agency.  My Fico Auto 8 scores range from 672 - 719.

I really would like to be able to get Tier 1 financing from Ford Motor Credit.  Looking over my Credit Reports, the main factors for my score seem to be 35% revolving credit usage, and 2 small collections accounts ($77, and $185).  I got the creditors for the collections account to agree to delete if I pay in full, so I paid them this month.

How much should my scores improve when the collections accounts fall off?  Also, I will be able to get my credit usage below 30% in the next few months, but there is no way I will be able to get it paid off.

Minor factors affecting my score are lots of inquiries, and 2 30+ late payments on 2 different accounts (4 total) from 6 years ago.  I have perfect payment history since then.

Any suggestions on what I can do to maximize my score in the next 4 months?  I am going to be financing around $40K for a vehicle, so I would like to get my interest rate as low as possible.

Thanks

Tim

[Anonymous]

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@Anonymous wrote:

I have about 4 months before I will be attempting to purchase a new vehicle.  Right now my Fico8 scores range from 675 - 688 depending on reporting agency.  My Fico Auto 8 scores range from 672 - 719.

I really would like to be able to get Tier 1 financing from Ford Motor Credit.  Looking over my Credit Reports, the main factors for my score seem to be 35% revolving credit usage, and 2 small collections accounts ($77, and $185).  I got the creditors for the collections account to agree to delete if I pay in full, so I paid them this month.

How much should my scores improve when the collections accounts fall off?  Also, I will be able to get my credit usage below 30% in the next few months, but there is no way I will be able to get it paid off.

Minor factors affecting my score are lots of inquiries, and 2 30+ late payments on 2 different accounts (4 total) from 6 years ago.  I have perfect payment history since then.

Any suggestions on what I can do to maximize my score in the next 4 months?  I am going to be financing around $40K for a vehicle, so I would like to get my interest rate as low as possible.

Thanks

Tim

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From what I've read (I'm no expert) getting your util down will be hugely beneficial to you. Since your lates are super old, they probably aren't affecting your score as much as when they were recent, but you could always write those lenders a letter asking for a good faith late removal to reward you for your stellar history for years following the lateness. The worst they can do is say no.

- C

[Anonymous]

I also wanted to add, that my revolving debt consists of 16 different accounts.  All of them have a balance, but 9 of them have very small balances (less than $200)

Would it help to pay off the smaller balance cards, so that I am showing some cards with $0 balance, or is it just the overall UTI that matters?  Also, if I pay them off, what are the chances of the credit company cancelling my card for lack of use?

Thanks

Tim

[Anonymous]

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@Anonymous wrote:

I also wanted to add, that my revolving debt consists of 16 different accounts.  All of them have a balance, but 9 of them have very small balances (less than $200)

Would it help to pay off the smaller balance cards, so that I am showing some cards with $0 balance, or is it just the overall UTI that matters?  Also, if I pay them off, what are the chances of the credit company cancelling my card for lack of use?

Thanks

Tim

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Yes, it would. If you can get more than 50% (so at least 9) of your cards to a 0 balance that would have the most beneficial impact. Pay down the other half as much as you can. Every bit helps. The PFDs should have at least a little bump too.

[Anonymous]

It sounds like you already know what you need to do... getting your utilization under 30% would really help you. I would try having a few of those accounts showing zero at the statement date (you can always use it again about a week after the statement date so there's no risk of it being cancelled... it just needs to show zero on the statement date for reporting purposes).

Getting collections removed should be huge, too, because in your bracket fewer people have open collections. It's worth a try calling the accounts with late payments and asking for goodwill removals of those for sure. Nothing to lose there, but as pointed out above they are so old they aren't likely hurting you much anymore. It's really about utilization and collections, both of which can be easily fixed in the time you have allotted.

I keep reading that 10% is another big boost for utilization so if 30% and removing collections doesn't do it for you, can you consider bringing your util down to 10%?

[RonM21]

Welcome to the forum! If those are your only collections and they come off, you should get a nice boost in your scores, regardless of how much they have a current effect on your reports.

As mentioned, getting your utllization down will help for sure. Preferred to get it down below 10% on only one card. You do this and I see a nice rise in your scores.