Strategy to improve score

Anonymous · ‎04-11-2008

My scores are all around 720. I have a short credit history (have only had a credit card for approx. 2 years), 2 CCs ($12k limit, $3k limit) both at $0. Student loan around $13,000. Mortgage for approx. $350k. Everything has always been paid on time.

What are the best things I can do to keep my score high and bring it up further? Should I use the credit cards? Open another? Pay off the student loan quickly, or make the minimum payments? I am especially interested in increasing my scores as much as possible to get the best mortgage I can (when we purchase again) in the next 1-2 years.

MidnightVoice · ‎04-11-2008

homeowner16 wrote:
My scores are all around 720. I have a short credit history (have only had a credit card for approx. 2 years), 2 CCs ($12k limit, $3k limit) both at $0. Student loan around $13,000. Mortgage for approx. $350k. Everything has always been paid on time.

What are the best things I can do to keep my score high and bring it up further? Should I use the credit cards? Open another? Pay off the student loan quickly, or make the minimum payments? I am especially interested in increasing my scores as much as possible to get the best mortgage I can (when we purchase again) in the next 1-2 years.

Personal opinion - TIME.

You have very good scores and a mix of credit. Use the cards a little, keep utilization on them low, PIF every month and let things age. One of your biggest "problems" as regards score is a low average age of accounts, and nothing can improve that except letting them get older. So my guess at your best course of action is not to open a lot of new accounts, pay your bills on time and use spare money for whatever is financially sensible. Just let everything age.

What is the total number of accounts on your CR? And average age and oldest?

The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid

Anonymous · ‎04-11-2008

I think you are in great shape-

Keep the UTL down under 10%- only allow 1 card to report a small balance.

I would start getting the SL paid down (depending on it's APR) as I am guessing you make too much $ to fully deduct the SL interest.

homeowner16 wrote:

My scores are all around 720. I have a short credit history (have only had a credit card for approx. 2 years), 2 CCs ($12k limit, $3k limit) both at $0. Student loan around $13,000. Mortgage for approx. $350k. Everything has always been paid on time.

What are the best things I can do to keep my score high and bring it up further? Should I use the credit cards? Open another? Pay off the student loan quickly, or make the minimum payments? I am especially interested in increasing my scores as much as possible to get the best mortgage I can (when we purchase again) in the next 1-2 years.

Junejer · ‎04-11-2008

Also, take a look at what the myfico simulator says is your best course of action. That is usually really good advice IMO (it has been right on for me).