05-24-2012 02:19 PM
I am looking at getting my credit score increased by bringing the best utilization to get a mortgage. Following are my scores
EQ 675 TR 688 From My fico and EX 700 from lender pull.
I have the following balances and the limits on these cards and line of credit
Chase 434 / 5100
Chase 401/4628 (Authorized user)
View point LOC 1284 / 14356
Total utilization < 9%
All these accounts are closed and I keep making payments on these accounts and these are counting towards my payment history. However I do not have any open line of credit. I brought the utilization down from 28% to < 9% but I have not seen any bump in credit score with TU. All the new balances have been reported to the 3 agencies. Chase 434 / 5100 is the only one showing a balance of 1434 / 5100 which is about 29%. The statement closes tomorrow and it should report a few days after that. Would my score get a bump when this new balance is reported to all the 3. Also there was a collection entry that was more than 2 years old that was deleted and it increased my EQ score by 11 pts and there was no change to TU.
Do I need to apply and get a credit card to show open line as suggested by my mortgage broker to bump my score. I am trying to get the score to over 740 to get the best mortgages.
Your input is appreciated.
Thanks in advance.
05-25-2012 07:28 AM
Do you have any other CCs reporting beside these?
Unfortunately when those accounts hit $0, they will forever be removed from CC util calculations, per FICO. Probably the best way to handle it is to slowly pay them down, evenly per util, and fight any urge by your lender to have them paid off. Eventually you'll have to though.
Opening a new CC can hurt your FICO. It would also be counter-productive to your goal of 740. Eventually you'll need to open a CC or two if you don't have any opened ones now, but I'm going against your broker's advice in saying that opening a new CC now would not help, but hurt.
Are there any baddies reporting?
05-25-2012 01:55 PM
Thanks for your input. I do not have any additional open CCs reporting. I have a lot of other closed accounts reporting zero balance. I am trying to keep making just over minimum payments on these accounts to keep them reporting to my payment history.
I have 2 old paid off collections (2 1/2 years old) which I tried getting them deleted and have not been successful, some late payments which occured 4 1/2 years ago.
Would it help in increasing the score, if I get myself added as an authorized user on my wife's open card that report. Would that count as an open account for me.
If I open a new CC account I know it will take some points off. But if I make a minimal charge on that card and when it reports would it increase my score in 2-3 months.
Thanks again for your help.
05-25-2012 03:06 PM
05-26-2012 07:41 AM
I'm going to be a nit here. The subject line should read. Minimizing Credit Utilization....
05-26-2012 08:43 AM