Rebuilding Your Credit

[UpmyscoreinFL]

I am currently at 622 equifax 669 transunion and around 660 Experian.  Mortgage broker wants to me at 680. I have about 3-4 months before I am going to apply for per approval letter. I have done all the cleaning up I can.  I think equifax is the lowest because there is a paid medical bill that I cannot get deleted.  The only negatives across the Board besides that one on equifax is short sale april 2009 and some late paymentson some accounts. My worst one I will be 12 months out from in January.  Everyone says quickest way to jump my score is pay off my credit cards. In a perfect world I would do that.  My DTI is fine.  Mortgage broker said to concentrateon saving MonEy.  Should I do that or should I try topay down my debt to get the Score jump.  I could probably save 1000.00 a month.  I am going to pay off some small credit cards and that will leave three.  10,000 balance (15,000 limit), 2200 balance (5000 limit), and a 1450 balance (1500 limit), all accounts are closed except the kohls which is the one that is almost maxed.  I am thinking to get the kohls card down atleast 50 percent and then save save save. Advice ? I know the kohls card is probably killing my score.

[Trons]

Well, I'm sure somebody with more knowledge then I will chime in, but I'll throw my opinion in there:

The Kohls is probably your best bet.  One of the things, I've read, that can drag your score down is if a single card is reporting greater then 80%.  From the way I understand it, FICO thinks that it's maxed out and it doesn't like that.  Other then Kohls, paying down your over all util for the score bump would probably be best, if you're looking at a better interest rate.

I'm not sure why a LO would recommend save.  I've always heard that you should never put money in savings if you are paying interest on revoloving debt.  Hopefully, somebody will chime in with more information.  Personally, I still do put a minor amount in savings while I'm paying down my CC Debt.  Like $20-$30/mo.  I only do this for the feel good feeling I get by transferring money from checking to savings and not because I think it's a good idea.

[CC40]

If you really want a jump - pay the Khols card!!!!!  Paying it off will give you the most immediate feedback.  As hard as it is to let that cash go - SEND IT IN!  The joy of watching your score go up is worth it.

[Shogun]

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CC40 wrote:

If you really want a jump - pay the Khols card!!!!!  Paying it off will give you the most immediate feedback.  As hard as it is to let that cash go - SEND IT IN!  The joy of watching your score go up is worth it.

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+1 Your util is dragging your score down.