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Help! Need to get my scores to the 620's!

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Anonymous
Not applicable

Help! Need to get my scores to the 620's!

First off I want to say thank you to these forums, they helped me alot! I started trying to improve my credit in May 2008, I was pretty much in the 400's except for TU which started at 548.

 

Right now TU is 578 and Eq is 576(up 100 pts).( last I was able to check EX was 540) I opened two $300.00 cards in May of 2008, now one has a credit limit of $450.00 and one is $375.00. My question on those is what should I keep the balance at? I have been keeping them at like $100 - $125, should it be lower? Unfortuntately one of my cards switched banks and now I have another account as of 12/8 and the original shows $0 balance closed good standing.

 

I have one collection account from Cap One. It was $1735.00, however I settled it (through my atty) for $750.00, had to otherwise they would have filed a judgement. However balance will not go to $0.

 

I also have this seventh avenue account, it was for $171.00, disputed it and called the company multiple times as I have no idea what this is, however, CA not on my credit repot offered me a settlement, I paid thinking it would be better to show a $0 balance but it still shows $33.00 and even though I have a letter stating zero balance, TU will not change it!

 

Other than that, I have a paid off car loan from five years ago, showing $0 balance but a couple of 30 day lates, tried everything to change that, nothing worked. I have three capital one accounts from six plus years ago, each one is around $2k, started at $300.00,but since they should come off in less than a year, I do not want to mess with them. The only difference is on my TU report it shows me as an auth user on my mom's discover card, not sure if that is helping me or not. I also have a $230.00 Verizon from 2007 because my daughter ran up the long distance and the wrote it off and put it right onto my credit, I disputed and it came off everyting except TU. They will not do PFD.

 

I have the opportunity to buy a house here under 40B in MA which is a program for buying like a $300-$400 house for like $170k. You have to have a certain income and go through a lottery approval process. The thing is is that my house could come up anytime from now to a year from now. I really do not want to miss the opportunity as I am a single mom and the opportunity for me to buy a new house here in MA under 200k would never happen again! The house is also in a rural area and I  could apply for the rural usda loan.

 

Any suggestions on what else I can do to get my scores up to the 620's? And does anyone know if I could get a mortgage if my score is not yet 620, or what the score requirements are for the rural usda mortgage?

 

Also, not to make this long and drawn out, but I have a daughter going into college this year and I may have to take out the federal plus loan, not sure how much yet or if I would even get approved. Would that have a negative impact on my score.

 

Any help would be apprectiated :-)! 

Message 1 of 8
7 REPLIES 7
angelzrfree
New Contributor

Re: Help! Need to get my scores to the 620's!

Sorry that I can't answer all your questions but you said that you "always keep them at like $100-$125". Is that the balance on both of the cards together or each? Also is this the balance AFTER paying for the month or before the statement closes? You always want your UTIL to be 10% or lower.
Hey look ma! I’m finally in the 700 club.

March 2020 - (EX) 730 (EQ) 707 (TU) 702

January 2023 - (EX) 772 (EQ) 789 (TU) 789
Message 2 of 8
Anonymous
Not applicable

Re: Help! Need to get my scores to the 620's!

Thanks for the response. That is after making payment and on each card.  So if I am understanding it right then the balance on the $375.00 card should be $37.50 and the $450.00 card should be $45.00? If I pay it down to that balance, shouldI see an improvement in my score?
Message 3 of 8
angelzrfree
New Contributor

Re: Help! Need to get my scores to the 620's!

Yes you should. I don't know how much of an improvement it would be. With my BOA card I had a 299 balance on a 500 dollar credit limit. When I paid it down to 4 dollars on the 500 dollar limit my score went from 609 to 653. That was only in a month. Having a high UTIL makes it look as if you're strapped for cash.
Hey look ma! I’m finally in the 700 club.

March 2020 - (EX) 730 (EQ) 707 (TU) 702

January 2023 - (EX) 772 (EQ) 789 (TU) 789
Message 4 of 8
Junejer
Moderator Emeritus

Re: Help! Need to get my scores to the 620's!

Hey ksm, as a point of clarification, the anecdotal evidence that is very commonly accepted here is that there is an increase with util UNDER 10%--so 1-9%. Also, less than half of your open accounts should have a balance, but never $0 on all revolving accounts. If I were you, I would keep one card reporting a balance of about $20 or so, and the other reporting a $0 balance.






Starting Score: 469
Current Score: 849
Goal Score: 850

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Message 5 of 8
Anonymous
Not applicable

Re: Help! Need to get my scores to the 620's!

Thank You! :-), I will immediately pay down both of the cards and hope for the best! Does anyone know about student loans and how much impact that kind of loan would have on my credit?
Message 6 of 8
Anonymous
Not applicable

Re: Help! Need to get my scores to the 620's!

It's generally easy to get student loans, HOWEVER you really should have your daughter carry the loans. There is no sense in you holding large amounts of debt for her education. Better to put your own money towards your own retirement.

 

Student loans will start a credit history for her (if she doesn't have one already) so that by the time she graduates she'll have 4-5 years of age on her account which will really help her scores. She won't have to start paying on the loans until she graduates.

Message Edited by seeker843 on 04-23-2009 08:35 AM
Message 7 of 8
Anonymous
Not applicable

Re: Help! Need to get my scores to the 620's!

Thanks! I am hoping not to have to take out a loan for her. It would be preferable for her to take out the loan and I would help her with the payments. However, she gets the $5500.00 for federal loans, would she be eligible to take out a private loan with no credit history? I read that Sallie Mae requires a certain credit score or she would need a co-signor. What kind of credit score does someone have if they have nothing on their credit report?
Message 8 of 8
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