Improving my FICO score quickly

[Anonymous]

My husband and I are trying to get our FICO scores up a few more points so we can qualify for a home equity loan that we will use to pay off all of our credit card debt and do home improvements.  I suggested we take $5000 out of my 401K to pay down some debt so that we have more available credit which would improve our score.  After the scores come up and we get the home equity loan we could put the $5000 back into my 401K.  Does this sound like a good idea and would it do the trick?

[jbsea]

Depending on how high you need to go.... But yes bring down utilization is the only fast way I can think of.... It might take a month or so waiting for your cards to report the new balance but I would do that.

[Anonymous]

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@Anonymous wrote:

My husband and I are trying to get our FICO scores up a few more points so we can qualify for a home equity loan that we will use to pay off all of our credit card debt and do home improvements.  I suggested we take $5000 out of my 401K to pay down some debt so that we have more available credit which would improve our score.  After the scores come up and we get the home equity loan we could put the $5000 back into my 401K.  Does this sound like a good idea and would it do the trick?

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Money taken out of your 401K will have a HUGE tax liability attached to it. Does you 401K plan have a loan option?

How much CC debt do you have, how much is on each card what are each cards limit? What is your monthly net income? How much of that is available toward CC debt? How many points do you need?

[Anonymous]

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@Anonymous wrote:

My husband and I are trying to get our FICO scores up a few more points so we can qualify for a home equity loan that we will use to pay off all of our credit card debt and do home improvements.  I suggested we take $5000 out of my 401K to pay down some debt so that we have more available credit which would improve our score.  After the scores come up and we get the home equity loan we could put the $5000 back into my 401K.  Does this sound like a good idea and would it do the trick?

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Money taken out of your 401K will have a HUGE tax liability attached to it. Does you 401K plan have a loan option?

How much CC debt do you have, how much is on each card what are each cards limit? What is your monthly net income? How much of that is available toward CC debt? How many points do you need?

[RonM21]

I assume that those are your credit limits?  Depending on the debt you have, I agree with the above, that pulling from your 401K may not be the best route long term.  But, you know your situation better than anyone to make that decision.