Zero balances on multiple credit cards

[12rakesh]

Hello:

Is it a good idea to have zero balances on multiple credit cards? My over all utilization is around 9%. I have 12 credit Inquiries. My FICO score (EQUIFAX) is 648. My revolving balance is $6400 and my creidt line is around $66000. My closing is in the next 2 months. So what would I need to do to bump up my score by 30-40 points at least.?

Thanks 

[azguy13]

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@12rakesh wrote:

Hello:

Is it a good idea to have zero balances on multiple credit cards? My over all utilization is around 9%. I have 12 credit Inquiries. My FICO score (EQUIFAX) is 648. My revolving balance is $6400 and my creidt line is around $66000. My closing is in the next 2 months. So what would I need to do to bump up my score by 30-40 points at least.?

Thanks 

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Since your UTI is already between the magical 1%-9% range, it will be extremely hard to raise your score by 30-40 points unless you have current baddies on your report that you can get rid of.

If you have open collections of any kind or any recent 30, 60, 90, 120+ lates reporting, you need to send letters to whichever creditor is reporting it and ask politely to have them removed. I did this to remove a 60 day back in 2010 before I applied for a mortgage and it worked. I simply explained the situation and they were simpathetic.

What does your current credit profile look like? Any potential negatives reporting?

[12rakesh]

Thanks for the suggestions. I truely appreciate it.  Below are the details. I would appreciate your suggestions 

Total Accounts 16 

Accounts with balances 9 

Revolving balance 6,476

Total credit line  $65000

Credit enquiries : 12 

Payment history : Very good ( 30 day late fee in April 2011 on two credit cards)

Amount of debt : Very good 

Lenght of credit history:  Not good (2.5 years)

Amount of new credit : BAD 

No derogatory remarks or negative indicators at all 

I actually ended up applying for 4-5 new credit cards in the month of November and december last year that kind of killed my score. But at that time I did not think I would plan buying a new home.

Would paying down the entire revolving balance increase my score ? or would I need to do anything else? Suggestions would be greatly appreciated.

[gdale6]

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@12rakesh wrote:

Thanks for the suggestions. I truely appreciate it.  Below are the details. I would appreciate your suggestions 

Total Accounts 16 

Accounts with balances 9 

Revolving balance 6,476

Total credit line  $65000

Credit enquiries : 12 

Payment history : Very good ( 30 day late fee in April 2011 on two credit cards)

Amount of debt : Very good 

Lenght of credit history:  Not good (2.5 years)

Amount of new credit : BAD 

No derogatory remarks or negative indicators at all 

I actually ended up applying for 4-5 new credit cards in the month of November and december last year that kind of killed my score. But at that time I did not think I would plan buying a new home.

Would paying down the entire revolving balance increase my score ? or would I need to do anything else? Suggestions would be greatly appreciated.

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Taking that 9 accounts reporting balances down to 1 reporting is going to get you some points, you utilization overall is at 10%, get it on to just 1 card and reducing it below 10% will also grab you some points as well. The 30 day lates are not hitting your score they dont usually after 2 years have past they are considered minor but I would still send GW letter to them to see if they will help you out. Good luck

[12rakesh]

Thanks gdale6. I was thinking on that lines as well. Just having balances on one or two cards.. 

Thanks much