topic Improving Score in General Credit Topics

Improving Score

Anonymous — Wed, 12 Nov 2008 23:26:39 GMT

Okay so my current credit score is 559, although the Equifax says 570. I have one major credit card, two store credit cards, and a student loan which I don't have to pay off yet (only about $1,200). My current balance on my major credit card is $1,600 (limit $1,750), although today I paid off $480 (it's still pending). One of the store cards I never used, the other I had a $13 balance which I never knew about (the statements were online, and I thought I paid the whole balance off), and that became delinquent (pretty stupid for only $13 but it was over two months late). I paid that off last Friday.

The reason I bring all this up is because I'm trying to get a new (used, 2007) Jeep. What I'm wondering is, after the $480 I paid off is done pending (should be after today), how much do you think it will affect my credit score and how soon? I realize there is no time table, but if you had past experiences I would appreciate if you could share. I'm trying to get a 600 credit score so I can get a lower interest rate. I do have a co-signer, but since I'm the primary, they are going by my score. The delinquent account that I paid has yet to affect it, and I realize that will take time. Any suggestions to quickly improve my score? Thanks for any help!

Re: Improving Score

llecs — Thu, 13 Nov 2008 12:09:36 GMT

I'd recommend delaying that Jeep purchase. Last thing you'd want is to get locked into a high interest rate where you'd lose thousands.

Continue with the SL as planned.

Pay your revolving card down to a balance of $174 or below before you finance that car.

For the store card you never used, make sure it is reporting on all 3. Some have been quirky in that it won't report until you use it. And I do recommend using it and then PIF every 4-6 months. If not, it could be closed due to inactivity.

For the $13 balance card, check your credit history. You could have a 30 day or 60 day (unlikely) late resulting from it. A new 30 day late can initially ding you up to 100 points depending on your credit history. Check all 3 CRAs and GW the issuer if that's the case. Don't even app for the car if it is on there.

The effect of the $480 payment would depend on the other CLs of your other 2 cards. You won't hit 600 with that payment.

If you have 0 lates, and the store charge account didn't ding you at all, you'll have a good shot at hitting 600 if you paid down the revolving CC to under 10% (that is how I got the $174).

But pull a 3 reports from here. Each report is different and each score is different.