cancel
Showing results for 
Search instead for 
Did you mean: 

How long will this take?

tag
Mitanni
New Visitor

How long will this take?

Until last month my FICO score was 771, but then two things happened.  In late November I accepted a $2500.00 line of credit increase and then I got very near to the max limit on my other card.  Subsequently, my FICO score dropped to 743.  I use my credit card for everything, but I pay it off every month and the total amount of interest that I paid last year was only $7.00.  I have since learned to not use my credit card so liberally, even though I pay it off every month.  So, my question is as follows:  If I keep my credit utilization under 7% and do not accept any increases in my credit limit or open any new accounts...just how long will it take my score to get bumped back up?  I want to purchase a new house this summer and I want to get the best mortgage rate.  I thank you all in advance for any comments that you might have.

Message 1 of 3
2 REPLIES 2
JM-AM
Valued Contributor

Re: How long will this take?

 


@Mitanni wrote:

Until last month my FICO score was 771, but then two things happened.  In late November I accepted a $2500.00 line of credit increase and then I got very near to the max limit on my other card.  Subsequently, my FICO score dropped to 743.  I use my credit card for everything, but I pay it off every month and the total amount of interest that I paid last year was only $7.00.  I have since learned to not use my credit card so liberally, even though I pay it off every month.  So, my question is as follows:  If I keep my credit utilization under 7% and do not accept any increases in my credit limit or open any new accounts...just how long will it take my score to get bumped back up?  I want to purchase a new house this summer and I want to get the best mortgage rate.  I thank you all in advance for any comments that you might have.


 

You can use your CC's as much as you like. The object is to pay it down to under 9% or less before the reporting date to the CRA's which is normally the statement date except for a few that report the end of the month.

 

If you bring the UTIL down you would see any change in scores the next reporting period which usually could take up to 30 days from payment.

Good Luck
May all your dreams and wishes become a reality!
Message 2 of 3
MarineVietVet
Moderator Emeritus

Re: How long will this take?


@Mitanni wrote:

Until last month my FICO score was 771, but then two things happened.  In late November I accepted a $2500.00 line of credit increase and then I got very near to the max limit on my other card.  Subsequently, my FICO score dropped to 743.  I use my credit card for everything, but I pay it off every month and the total amount of interest that I paid last year was only $7.00.  I have since learned to not use my credit card so liberally, even though I pay it off every month.  So, my question is as follows:  If I keep my credit utilization under 7% and do not accept any increases in my credit limit or open any new accounts...just how long will it take my score to get bumped back up?  I want to purchase a new house this summer and I want to get the best mortgage rate.  I thank you all in advance for any comments that you might have.


Hello and welcome to myFICO.

 

You should never turn down a CLI (Credit Limit Increase). They are too hard to come by.  Smiley Happy

 

Besides it's not the CL that is looked at for scoring. It's the percentage of usage of the CL's that is scored each month.

 

 

 

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

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

Message 3 of 3
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.