Credit Usage Score effect

[shorttough]

Hi all,

in terms of Credit Usage, i'm trying to boost my FICO score for Mortgage.

I have 12 maxed out credit cards. 2 closed cards with balances. 3 car loans. 2 mortgages

what would be the best scenario ?

I can either pay off 7 cards and leave 5 cards maxed out. 

i can have 2 paid off, 5 cards less than 30% and have 5 cards below 90%

I'm also looking at the factors below and trying to determine which one i should prioritize.

individual Credit Card usage

Overall Credit Card usage

Maxed Out Cards

Number of cards with balances.

Thanks.

[Anonymous]

I believe bring the utilization on individual cards less then 30% each. Maxing out cards is like inviting for AA from lenders anytime soon also it hurts credit scoring. 

Once bring the utilization on each cards below 30%. next work on getting them below 10%, that way your scores will boost and you will be in a better way to knock down balances. 

[shorttough]

i think what you're suggesting would be long term. i have taken a personal loan out just to boost my score, so that i can do a cash out refinance to pay off all my debt. with out a good FICO score i can't get a good interest rate. And i plan to do so within the next statement closing which happens to fall at the end of the month.

10 year bond is low now.. so i'm wanting to take advantage of the 3.625 % mortgage interest rate.

[CreditDunce]

Talk to your mortgage lender to get their advice.  

If those 12 cards have been maxed out for some period of time, be prepared for at least a few of the CCC's to balance chase you.  It might be best to try paying down the CCC's that are less likely to balance chase your first.

[shorttough]

hmm.. you got me worried. I'll pull myFico at the end of this month. hopefully its 700+.. i'll just lock the rate.

[Anonymous]

You need debt management classes, then you need to pay off all cc debt in full, then cancel all cc's., and start living within your managed income level.

I think your mortgage score is the last thing you need to worry about, as it sounds like your trying to get your score up for more credit.

Best of luck

[shorttough]

I know what i'm doing. I didn't post my Q's for you to advise me on Debt Management. READ the question before you say something!!

i've enough equity in the house to pay off all my debt and still have the same payment. Unfortunately to get there, i need a good interest rate and a good FICO Score and DTI less than 45%.

[NRB525]

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@shorttough wrote:

Hi all,

in terms of Credit Usage, i'm trying to boost my FICO score for Mortgage.

I have 12 maxed out credit cards. 2 closed cards with balances. 3 car loans. 2 mortgages

what would be the best scenario ?

I can either pay off 7 cards and leave 5 cards maxed out. 

i can have 2 paid off, 5 cards less than 30% and have 5 cards below 90%

I'm also looking at the factors below and trying to determine which one i should prioritize.

individual Credit Card usage

Overall Credit Card usage

Maxed Out Cards

Number of cards with balances.

Thanks.

---

What are the cards you have, their individual credit lines, APR you are currently paying, expiration date of any promotional APR, and current balances?

Getting the cards to lower utilization is generally good, however reducing APR as quickly as possible ( there are some possible BT steps to take depending on which banks, which cards, you have ) helps you direct payments to actually reducing principal as fast as possible. I had $116k of open balances at one point, and by ensuring I kept the lowest APR possible, that helped to pay down the amounts.

[shorttough]

Hi,

HSBC	2354	2405	97.88%	55	15.49%
Citi Platinum	3,997	4000	99.93%	96	18.24%
Barclays	2449	2500	97.96%	66	19.99%
Barclays	4,429	4500	98.42%	118	19.99%
CapOne	1983	2000	99.15%	49	17.90%
Chase Slate	5904	6000	98.40%	147	17.99%
Amex	3462	3500	98.91%	92	18.24%
BOA	15,481	15500	99.88%	354	15.99%
Citi Simplicity	7,990	8000	99.88%	186	16.99%
Discover	5,289	5400	97.94%	108	16.24%
Amex Closed	4,273	9600	44.51%	90	14.24%
Discover	12,440	12450	99.92%	249	15.99%
BOA	2,992	3000	99.73%	78	20.24%
Citi Closed Acct	2,937	7800	37.65%	61	14.99%

I took a personal loan for 20K plus 5K reserve.  I have till May 2nd to get it above 700+.  My purpose here is short term solution. Please don't tell me about the snowball or high interest rate pay first Solution. Im not seeking long terms solution

[Kidcat]

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@shorttough wrote:

Hi,

HSBC	2354	2405	97.88%	55	15.49%
Citi Platinum	3,997	4000	99.93%	96	18.24%
Barclays	2449	2500	97.96%	66	19.99%
Barclays	4,429	4500	98.42%	118	19.99%
CapOne	1983	2000	99.15%	49	17.90%
Chase Slate	5904	6000	98.40%	147	17.99%
Amex	3462	3500	98.91%	92	18.24%
BOA	15,481	15500	99.88%	354	15.99%
Citi Simplicity	7,990	8000	99.88%	186	16.99%
Discover	5,289	5400	97.94%	108	16.24%
Amex Closed	4,273	9600	44.51%	90	14.24%
Discover	12,440	12450	99.92%	249	15.99%
BOA	2,992	3000	99.73%	78	20.24%
Citi Closed Acct	2,937	7800	37.65%	61	14.99%

I took a personal loan for 20K plus 5K reserve.  I have till May 2nd to get it above 700+.  My purpose here is short term solution. Please don't tell me about the snowball or high interest rate pay first Solution. Im not seeking long terms solution

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Hi Op.  Unfortunately there may not be a short term solution with $20k to get your score over 700 by May 2.  By my calculation the debt is almost $76k so $20k won't unmax enough cards to give you the boost you want, and your overall utilization will still be well over 50%.  

People are providing with well meaning, and sound advise.  You are asking for the impossible, which is why you are not getting the answers you want.  If you need a middle score of 700, you need one of the lower scores to boost by nearly 50pts.  That will be hard to do in 1 month with only $20k to put toward your debt.

Good luck