11-06-2012 01:39 PM
I am new to this community. About 3 months ago I began looking at new homes, found one we loved, went to the lender and of course my credit score isn't where it needs to be. I recently paid down my credit card to less than 100 dollars (2,000 credit limit) and have cleaned up my credit report quite a bit by disputing claims. I now am at a 638, TWO points from being able to be approved for an FHA loan. So the lender told me to get a secured credit card, and leave a small balance on it. And in a month or so to get back with her. Does this sound like a reasonable idea? And if I do this about how long does it actually take to up my score? A month doesn't sound like a long enough time to give it enough time to go up. Any feedback would be very much appreciated! Thanks
11-06-2012 02:39 PM
The initial report of the card may help or hurt you, depending on the inquires and the average age of your accounts as well as your overall utilization including any debts. In my case, paying 2 secured credit cards on time for 6 months gave me almost 120 points..but I was completely in the dumps at 388 FICO so the 2 cards along with the aging of negative items and the fact that those were the only 2 things reporting positively definitely caused a major increase.
The real question is, how many accounts do you currently have reporting in good standing? How many revolving credit accounts do you have? Three is apparently the magic number, I personally have 4 secured cards and will let them grow in the garden while I focus on removing some baddies on my reports. I am no professional, but I think people like Shogun are going to need a little more information to give you an accurate answer, and even then it really is just a guess. So in a nutshell, what is your TOTAL utility, how many revolving accounts do you have and any other pertinent information should give us the ability to give you some better information.
11-06-2012 02:50 PM
11-06-2012 02:59 PM
11-06-2012 03:01 PM
11-07-2012 08:07 AM
Ok, great! I will do some research on that. Thank you very much for your feedback on this. This process has been pretty grueling to get my few points up but hopefully with some patience I will get where I need to be! Thanks again
11-08-2012 07:34 AM
Rebuilding......Just added 2 secured cards, one is a Matrix and the other is a Cap1.The Matrix just posted last week and added 44pts..WOW! IM hoping when the Cap1 reports it helps me that much.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions based on Experian or Equifax data (additional FICO® Score versions based on TransUnion data are not currently available on myFICO.com). Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.