Rebuilding Your Credit

[justwantahome]

I just cut down my total cc utilization on 2 cc's down from 89% down to 36%. How much of point jump could I expect if I have one collection acount that is PIF from a year ago and no other bad credit.  10? 20? 30?

[fused]

Its hard to say how many points you'll gain from paying down your CCs from 89% to 36% util. Do you know your FICO scores?

[kadenandellasmom]

I just reduced mine from 94% to 35% and received 43 pts - 603 to 646. 

[justwantahome]

As of December my Equifax was 633 and my TU was 622. Also to put into play I have a car loan from April 2010 and Ive made every payment. My current balance on it is $9540. Im hoping i can get both scores into the 640s. 

[justwantahome]

Nice jump! Good job! 46 points would be amazing in my situation! How recently did you do this?

[fused]

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justwantahome wrote:

As of December my Equifax was 633 and my TU was 622. Also to put into play I have a car loan from April 2010 and Ive made every payment. My current balance on it is $9540. Im hoping i can get both scores into the 640s. 

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Ok! Any bad stuff on your reports? Lates, collections, etc? If so, how severe (for the lates) and how recent?

[justwantahome]

I had one cell phone collection from about a 5/2010 that I just PIF. I sent a GW letter to them last week but Im not banking on that at all. But other than that baddie I am clean.  

[fused]

Okay. If I were betting, I would guess your scores should improve by at least 30+ points after your new util reports. Getting a successful GW  might very well get you into the 700+ club.

[justwantahome]

well I hope youre right! just paid $525 towards my balance which I believe wil get me to 35%. I mean as individual utilizations go one card will be 0% when it was 77% and the other card will be 50% when it was 95%.  Still its a great improvement and hopefully by May i should be cc clear and closing on my new home!

[luckybob]

I just got through doing what you are refering too.  I had a credit utilization of about 90%, paid it off down to under 10% and my scroes rose quite a bit.

Trans 562 -> 620

Equifax 524 -> 600

In addition to getting my utilization under 10% I also had an old credit card removed that was showing as an AU.  It was old, but had a 120-day late in it.  So with that gone and my utilization down I increased roughly 60 points.  This is FICO from myFICO as well.