Rebuilding Your Credit

[lemers718]

Started this journey  to be be in a postion to apply for a mortgage in one year. After one month my Transunion jumps 60 points from 518 to 578. I have two charge offs due to fall of in December. One is reporting a $4700 balance. I hope this will help my utilization. Should see another big jump in Jan. 2013.  Thank you all for the great advise.

[Epcot]

Congrats on the great increase! Keep up the good work and you are on your way to that mortgage.

[madmann26]

Congrats!! Looking good!

[sphinx313]

If it's a credit card charge off reporting a balance then it should definitely be playing into your utilization and you should see big improvement in that area when it falls off.

[shoppingsenior]

Congrats!! Keep up the great work. I love seeing posts like this.

[Royzo]

Correct me If I am wrong but I thought utilization was just the percent of available credit you are using?  I did not think bad debt owed effected that.

[lemers718]

I have a charged off credit card with a credit limit listed as $1800 and a balance as $4700. That puts me at at almost 300% Utlization rate on this card.

[llecs]

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Royzo wrote:

Correct me If I am wrong but I thought utilization was just the percent of available credit you are using?  I did not think bad debt owed effected that.

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Per FICO, utilization would be the percentage used and includes CC, LOCs and HELOCs (up to a certain limit), and includes charged-off CCs provided they report a balance and a CL just like in the prev. poster's example.

[Cadillac-XTS]

Congrats

[batemanclan6]

That is wonderful! Congrats on the increase