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New Member
JENTHOM
Posts: 3
Registered: ‎12-19-2007
0

Help, I need advice!!!

My husband and I are trying to get our FICO scores up before we apply within the next 1-2 years for a home loan. We have about 15,000 in credit crad debt that I would like to pay down below the 30% mark. How long does it take if I was to pay 2,000 toward our debt each month to see my credit score start to increase? We aren't sure if we should just save, save, save or pay down everything then save for our home after our credit card debt is lower. Any advice?
Valued Contributor
cobra19
Posts: 1,426
Registered: ‎07-24-2007
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Re: Help, I need advice!!!

You may also want to consider applying for additional credit - too decrease ut.
 
If you pay 2k a month, you should see an increase right away.  I'd try to get to <10%.
New York Yankees - 2009 World Series Champions. 27... and counting.....
Senior Contributor
Sylviatob
Posts: 4,596
Registered: ‎09-14-2007
0

Re: Help, I need advice!!!

Hi Jen, and welcome to the forum. There's a lot of good information here for you, and knowledgeable people here to help you.

IMO, paying down your cc debt should be a tip top priority, well before house shopping, as the amounts owed account for 30% of your FICO scores,which is a MAJOR factor when you apply for a mortgage.

The trick is to use the cc's minimally or not at all WHILE paying $2,000/mo on your existing debt.

And IMO, don't stop at 30% utils, but get it down below 15%, ideally 10% for maximum score impact, which is what you are looking for.

Hope that helps. :smileyhappy:

Good luck to you.
"Never ever, ever be late. Never" (FUTR)
Moderator Emeritus
fused
Posts: 16,321
Registered: ‎03-12-2007
0

Re: Help, I need advice!!!



JENTHOM wrote:
My husband and I are trying to get our FICO scores up before we apply within the next 1-2 years for a home loan. We have about 15,000 in credit crad debt that I would like to pay down below the 30% mark. How long does it take if I was to pay 2,000 toward our debt each month to see my credit score start to increase? We aren't sure if we should just save, save, save or pay down everything then save for our home after our credit card debt is lower. Any advice?


Welcome to the forums! Can you list your credit card limits and balances so we can see the full picture. Also have you read Tuscani's, one of myfico's moderators, credit scoring 101 thread? Here's the link.
 
Credit Profile -
FICO 08 Scores (08-15-2014): EQ 820, EX 817, TU 814
All three scores were 850. Lost points for not having an open installment TL. So, BE WARNED!!!!!
Credit History: 26+ years ~ AAoA: 12 years ~ Util: 1% ~ Inqs: EX 1 (Amex 07-15-2014)

Credit Cards -
Amex BCP 25K ~ Amex Clear 25K ~ Amex Platinum NPSL ~ Chase Freedom Visa 19.3K ~ CITI Dividend World Mastercard 20.3K ~ FIA Fidelity Investments Platinum Plus Visa 40K ~ A Gold Visa with my local bank 10K

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