What will raise score more/faster???

[Anonymous]

This is my first time posting and I am glad to say that with the help of my income tax return check I have a $0 balance on 5 credit cards that are now closed!

I have a store credit card with an 11% interest rate with a balance of $1200. 

I also have a car note that has about $8000 left to pay off, paying 333.12  a month .

My husband has a studen loan with about $3000 left to pay... 

We are trying to buy a house. 

What is the best way to raise our scores? Should we pay off the store card to zero balance as well? Should we open up 2 of the previously closed accounts (one in his name, one in mine?)

Should we take our car back to dealership and get a cheaper one?

We are really trying to raise our credit scores and would like to know the best options for us...

Any input would be great. 

Thanks!!

Message Edited by marlaina on 02-28-2009 07:55 AM

[Junejer]

Hello marlaina, and welcome to the forums. Please read Credit Scoring 101, if you haven't already.

If any of the CCs are available to reopen, I would do that ASAP. Also, having a small balance report on one card monthly is better than having a $0 balance report for scoring purposes. Can you all not afford a $333/month car payment. If you turn that car in for a different car, the $8000 balance would get paid off first and any excess would then be applied as equity into the new car. I would be willing to bet that your new payment would be equal to or greater than the current one. Is the current car worth $8000 or more?

The quickest way to raise a FICO score is through the intelligent use of CCs. 1-9% util overall and allowing only one card to report that small balance, is how my scores react best.

HTH GL