Frequent Contributor
pdog661
Posts: 378
Registered: ‎03-31-2012
Re: Best use of cash to improve credit score for refinancing

Scully1 wrote:

Discover 13,400 balance/14,000 credit limit

Target MasterCard 12,430 balance/12,800 limit

Jcpenney MasterCard 4,500 balance/5,500 limit

Home Depot 3,500 balance/21,000 limit

 

I have a 720 FICO. I've worked really hard to never be late. Sold an asset and now have $12,000 to pay down debt. What will give me the biggest bump in my score? I am hoping to refinance my mortgage.


 

Here is what I would do: new balances in red

 

Discover 11,200 balance/14,000 credit limit

Target MasterCard 10,240 balance/12,800 limit

Jcpenney MasterCard 0 balance/5,500 limit

Home Depot 0 balance/21,000 limit

 

This could be a good bump to your score.  You currently have 2 maxed out cards in FICO's eyes.  Total payments will be 12,390 and your UTL move from 63% UTL to a 40% UTL.