topic Re: Need help improving score in General Credit Topics

Need help improving score

Anonymous — Thu, 04 Jun 2020 21:03:39 GMT

Hello,

I'm trying to improve my credit score so I can buy some real estate. Here's where I stand:

I have a 650 credit score using credit karma. I have never been late on a payment in 15 years, other than one 30 day late I am in dispute with with one credit card (currently does not show up on my credit report as late).

I have 12 accounts that are as follows:

8 Credit Cards
Total credit lines: $118,200
Total balances: $30,943

Consigner on student loans, balances:

1) $2,249
2) $37,344

Car loan
1) Original Loan: $37,912, Current Balance: $19,774

Home Loan:
1) Original Loan: $383,814, Current Balance: $383,814

Average age of open accounts: 3 yrs 2 mos

I’m trying to figure out if I should close some of my newest accounts. I thought I would need this credit and I don’t. I have the money to pay off my existing balances, but they are zero interest balance transfers so I’m just letting them sit there.

Does anyone know if I close the newest cards so that my cards are older, would that help? My oldest card is 15 years old. I don’t have a need for most of these cards so I could close 6 of them and still be fine. How much would an average age of open 6.2 help?

Any other advice?

Re: Need help improving score

RSX — Thu, 04 Jun 2020 21:08:11 GMT

even if you close a card, it stays on your report for 10+ years - so your Average Age will NOT increase - it will remain the same as if the card was still open

so closing them will not help - it may raise your Utilization and hurt your score though

Your best course of action is to lower the balances on your CC's. since you are at 26%

and check your Fico score, as the CK score is not used by lenders

Re: Need help improving score

dragontears — Thu, 04 Jun 2020 21:09:44 GMT

@Anonymous wrote:
Hello,
I'm trying to improve my credit score so I can buy some real estate. Here's where I stand:

I have a 650 credit score using credit karma. I have never been late on a payment in 15 years, other than one 30 day late I am in dispute with with one credit card (currently does not show up on my credit report as late).
I have 12 accounts that are as follows:

8 Credit Cards
Total credit lines: $118,200
Total balances: $30,943
Consigner on student loans, balances:
1) $2,249
2) $37,344
Car loan
1) Original Loan: $37,912, Current Balance: $19,774

Home Loan:
1) Original Loan: $383,814, Current Balance: $383,814

Average age of open accounts: 3 yrs 2 mos

I’m trying to figure out if I should close some of my newest accounts. I thought I would need this credit and I don’t. I have the money to pay off my existing balances, but they are zero interest balance transfers so I’m just letting them sit there.

Does anyone know if I close the newest cards so that my cards are older, would that help? My oldest card is 15 years old. I don’t have a need for most of these cards so I could close 6 of them and still be fine. How much would an average age of open 6.2 help?

Any other advice?

First the score you see with credit Karma is NEVER used in real estate.

Second is your mortgage brand new? What score did you have to qualify for it?

Third, closing cards will NOT increase your average age of accounts therefore will NOT increase your score (could actually lower it if your overall utilization increases)

Re: Need help improving score

Anonymous — Thu, 04 Jun 2020 21:25:07 GMT

@dragontears wrote:
@Anonymous wrote:
Hello,
I'm trying to improve my credit score so I can buy some real estate. Here's where I stand:

I have a 650 credit score using credit karma. I have never been late on a payment in 15 years, other than one 30 day late I am in dispute with with one credit card (currently does not show up on my credit report as late).
I have 12 accounts that are as follows:

8 Credit Cards
Total credit lines: $118,200
Total balances: $30,943
Consigner on student loans, balances:
1) $2,249
2) $37,344
Car loan
1) Original Loan: $37,912, Current Balance: $19,774

Home Loan:
1) Original Loan: $383,814, Current Balance: $383,814

Average age of open accounts: 3 yrs 2 mos

I’m trying to figure out if I should close some of my newest accounts. I thought I would need this credit and I don’t. I have the money to pay off my existing balances, but they are zero interest balance transfers so I’m just letting them sit there.

Does anyone know if I close the newest cards so that my cards are older, would that help? My oldest card is 15 years old. I don’t have a need for most of these cards so I could close 6 of them and still be fine. How much would an average age of open 6.2 help?

Any other advice?

First the score you see with credit Karma is NEVER used in real estate.
Second is your mortgage brand new? What score did you have to qualify for it?
Third, closing cards will NOT increase your average age of accounts therefore will NOT increase your score (could actually lower it if your overall utilization increases)

The mortgage was originated in June of 2016. I belive the score was an 802, but it could have been in the 700s - Certainly not lower.

Re: Need help improving score

Anonymous — Thu, 04 Jun 2020 21:27:25 GMT

Sorry. The mortgage info was wrong. Here's the accurate info:

Original Principal BalanceCurrent Principal Balance

$413,250.00

$382,404.76

Re: Need help improving score

Anonymous — Thu, 04 Jun 2020 21:29:04 GMT

Does it take time after lowering balances to get the full score change? I just paid off $42,000 and only saw an 18pt change.

Re: Need help improving score

RSX — Thu, 04 Jun 2020 21:34:10 GMT

It really depends. You would have to check if each account has been updated with the lowered amount.

You likely got 18pts for dropping below 29%

each step down below will continue to help.

Re: Need help improving score

Anonymous — Thu, 04 Jun 2020 22:00:56 GMT

So it seems like I really just need to wait until these new cards get a fewer years older.

Re: Need help improving score

Girlzilla88 — Thu, 04 Jun 2020 22:03:10 GMT

@Anonymous It can take time sometimes even a few months for certain things to be updated/see a change. Give it time

Re: Need help improving score

Anonymous — Thu, 04 Jun 2020 22:05:18 GMT

Will do. Thanks for your help.

Re: Need help improving score

M_Smart007 — Fri, 05 Jun 2020 00:32:27 GMT

Hi @Anonymous and to the forums!

You have been given some awesome advice upthread.

Might look into "AZEO" you will most likely get a boost in your scores.

(Don't worry about the Mortgage, probably not an option to do a whole lot there)

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/General-Scoring-Primer-and-Version-8-Master-Thread-rev-5-17-20/m-p/6023350#M169681

Re: Need help improving score

Anonymous — Fri, 05 Jun 2020 00:53:58 GMT

Great info. Thanks!

Re: Need help improving score

SouthJamaica — Fri, 05 Jun 2020 03:14:58 GMT

@Anonymous wrote:
Hello,
I'm trying to improve my credit score so I can buy some real estate. Here's where I stand:

I have a 650 credit score using credit karma. I have never been late on a payment in 15 years, other than one 30 day late I am in dispute with with one credit card (currently does not show up on my credit report as late).
I have 12 accounts that are as follows:

8 Credit Cards
Total credit lines: $118,200
Total balances: $30,943
Consigner on student loans, balances:
1) $2,249
2) $37,344
Car loan
1) Original Loan: $37,912, Current Balance: $19,774

Home Loan:
1) Original Loan: $383,814, Current Balance: $383,814

Average age of open accounts: 3 yrs 2 mos

I’m trying to figure out if I should close some of my newest accounts. I thought I would need this credit and I don’t. I have the money to pay off my existing balances, but they are zero interest balance transfers so I’m just letting them sit there.

Does anyone know if I close the newest cards so that my cards are older, would that help? My oldest card is 15 years old. I don’t have a need for most of these cards so I could close 6 of them and still be fine. How much would an average age of open 6.2 help?

Any other advice?

Closing cards would actually lower your score, rather than raise it. You would gain nothing from closing any accounts, because they show up in your average age of accounts as long as they remain on your credit report for many, many years.

The best thing you can do for your mortgage scores is to pay down all your revolving accounts, getting as many of them as possible to zero (but if you succeed in accomplishing that, be sure to let one bank card report a small balance before you pay it off).

Re: Need help improving score

righthererightnow — Sun, 07 Jun 2020 22:28:07 GMT

Good point on the newer (vs. older) cards. You might get more points by just paying down your balances. Your credit debt ratio has got to be killing your score.