high utilization

[Anonymous]

Hi everyone!

I am in the process of paying down my credit cards with hopes to purchase a home this sping. I have VERY high utilization like 95% ( we just finished paying for a wedding). My credit card debt is about 5k. If I pay it down to about 4500 over the next 4 months how much of a jump should I expect? right now score 8's are equ 582, Trans 586 and exp 621. my mortgage scores are equ 586  exp 587 Trans 603.

Thanks,

Ashley

[SouthJamaica]

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@Anonymous wrote:

Hi everyone!

I am in the process of paying down my credit cards with hopes to purchase a home this sping. I have VERY high utilization like 95% ( we just finished paying for a wedding). My credit card debt is about 5k. If I pay it down to about 4500 over the next 4 months how much of a jump should I expect? right now score 8's are equ 582, Trans 586 and exp 621. my mortgage scores are equ 586  exp 587 Trans 603.

Thanks,

Ashley

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1. My recommendation is that you postpone your plan of purchasing a home until your scores are much higher

2. You can't expect much of a jump from paying your credit card debt down to 4500

3. Once your credit card debt is down to 10% or less then take a look at where you stand.

[Anonymous]

im sorry, I didnt mean down to $4500. My plan is to pay $4500 so down to $500.  which should give me a huge leap...right?

[SouthJamaica]

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@Anonymous wrote:

im sorry, I didnt mean down to $4500. My plan is to pay $4500 so down to $500.  which should give me a huge leap...right?

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If your credit limits total more than $5k, and your reported statement balances are $500 or less, you should get a nice boost.

[Anonymous]

Also, once you get it paid down some.... ask for a CLI on all of your cards. Even if you don't need it or ever plan on using it. That'll help reduce your utilization.