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Valued Member
bigjay4x4
Posts: 34
Registered: ‎04-20-2013

Question on credit scoring

I am trying to get approved for a mortgage and my middle score is 8 points away from an approval. I am wondering if when I pay my car payment if that will change my score.
Moderator Emeritus
llecs
Posts: 32,880
Registered: ‎08-04-2007

Re: Question on credit scoring

[ Edited ]

bigjay4x4 wrote:
I am trying to get approved for a mortgage and my middle score is 8 points away from an approval. I am wondering if when I pay my car payment if that will change my score.

Welcome!

 

So close...paying a car payment won't likely increase your FICO. Maybe if it was paid off there's a slight chance for an increase, but IMO, it'll be a stretch to hit 8 pts if paid off completely. YMMV on your credit of course.

 

Is there any revolving debt (e.g. CCs, LOC, HELOCs)? Paying down revolving debt is often the fastest way to improve your FICO.

 

ETA...forgot to add, but I zapped your other post that had bumped the older thread. You'll have more eyeballs looking at your post by the thread you started here.

Valued Member
bigjay4x4
Posts: 34
Registered: ‎04-20-2013

Re: Question on credit scoring

I have one credit card that I opened in February. Used it and paid it off. Credit guy and mortgage guy suggested using it again and then paying it down to leaving a balance of $10. So I have done this and the cc will report the middle of next month. They seem to think that will get me the 8pts needed
New Contributor
ABuckNow
Posts: 107
Registered: ‎03-03-2013

Re: Question on credit scoring

Wow, a loan officer told you that? they're generally clueless as to how credit scoring actually works!

they are correct - if you have just one card, have it report between 1% and 9% utilization.  0% can hurt, 10% or greater can hurt your score too.

If you have more than one card, the general advice is to have all but one card at 0$, and that one card follow the advice above.

My advice would be to keep it close to 1%...my one CC went from 1% to 4% and dropped fico by 4pts - YMMV.

Good luck, keep us posted!


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