04-28-2013 04:01 PM - edited 04-28-2013 04:09 PM
Hi everyone. I am new to the forums and fico.com. I hope to gain much needed advise from fellow members. I have been browsing for a little over a month and do get the gist of credit repair.
- Got my first CC in 2008 when I was 19 (unsecured chase slate $500). I remember seeing a score back then of 668 but don't remember which bureau. Never missed a payment but had a high balance of $550 a few years back.
- Received department store credit card in 2009 $100 no balance since 2011.
- Opened another card in 2011 (capitol one platinum $300). Little to my knowledge there was a $3 monthly fee which a failed to pay for about 4 month. I had statements going to an old residence. since I wasn't charging on the card, I failed to check for any statements. Paid the balance in full. Tried to use the card a few days later and it was "restricted". Told the guy to close the account if I cannot use it. Three months later get a phone call saying I owe on the card again (great..). This time I make sure it's canceled (December 2012 closed).
- Got an auto loan in 2011 ($447 a month 39 months). Haven't missed a payment but deferred for 3 months.
- Father signed up for a citi card (2k limit December 2012) and put me as a secondary card holder. He racked up $1980 in debit with it. I am currently paying it down.
One month ago:
Transunion score 3/28- 556
Fico score 3/29- 555
Held $450/500 balance on chase.
Held $1980/2000 balance on citi.
Showing three collections (medical) $1350
-two over 2 years old.
-one is 1 month old.
-Paid down Chase card from $450 to $30.
-Paid down Citi from $1980 to $1500.
-Got new Merrick bank credit card $600 (holds $20 balance).
-Got new Capital one platinum $750 (no monthly fee) and it has $30 balance.
- Sent in pfd for 50% of value. Removed one of the collections.
-Available credit went from $2600 to $3950
- Credit card balances went from $2450 to $1600
-Utilization down 54% from 94 to 40%.
Transunion score: up 68 points from 556 to 624
Fico score: up 67 from 555 to 622
Currently I have the ability to pay off all of my credit card debit. My main question is should I pay it in full or pay like $100 a month for the next year or so (no interest for the next 12 months)? My main goal is to raise my score as much as possible. Which way has the best chance of doing that? Also, should I scatter the debt over multiple credit cards? ex. Pay down the citi a little more and add some to the other cards. Does this make a difference?
04-28-2013 06:19 PM
Your utilization is still high. For best FICO results, have all but one card report 0 balances and the other at 9% or below. Never let them all report a 0 balance. I would pay them down now. The longer you wait, the lower your score will remain.
04-28-2013 09:03 PM
Thanks for the reply Guiness.. I was under the impression that your total utilization you would want to be that number. If I made only one account 9% then my total would be less then 5%. Is that not how it goes?
04-28-2013 09:29 PM - edited 04-28-2013 09:31 PM
Say, you have 6 cards. All of but one of them report a 0 balance and one reports at 9%
1. 0/1000 0%
2 0/500 0%
3. 0/1000 0%
4. 0/1000 0%
5. 45/500 9%
6 0/300 0%
Total balance = 45/4300 = 1.04% Total utilization is still 9% or under. YMMV and you can play around with the % to see where you get the best score.