topic Re: Looking For That Final “Bump” in Mortgage Loans

Looking For That Final “Bump”

Alex311 — Wed, 04 Jul 2018 16:21:40 GMT

Good Morning everyone and Happy 4th of July!

I’m looking to start the homebuying process soon as a 1st time homebuyer. Currently my Middle Fico score is 685 and I’m looking to bump it to or over 700 within the next 30 days. Currently I have only 3 cars with balances all under 50% of their total. ($2000 $1000, and $700 owed on the 3 cards)and in total they add $100 to my DTI ratio. I don’t have much saved as far as down payment is concerned ($2000) but I’m hoping on down payment assistance. My question is what could I do to possibly get that final bump in my middle score to get to 700... or would it even be worth it at this point? Thank you for your help in this situation!

Re: Looking For That Final “Bump”

CreditInspired — Wed, 04 Jul 2018 18:45:00 GMT

@Alex311 wrote:
Good Morning everyone and Happy 4th of July!

I’m looking to start the homebuying process soon as a 1st time homebuyer. Currently my Middle Fico score is 685 and I’m looking to bump it to or over 700 within the next 30 days. Currently I have only 3 cars with balances all under 50% of their total. ($2000 $1000, and $700 owed on the 3 cards)and in total they add $100 to my DTI ratio. I don’t have much saved as far as down payment is concerned ($2000) but I’m hoping on down payment assistance. My question is what could I do to possibly get that final bump in my middle score to get to 700... or would it even be worth it at this point? Thank you for your help in this situation!

Welcome to MyFICO.

This is not only increasing your ratio but hurting your utilization.

When buying a house or applying for new credit, you want your utilization to be as low as possible.

So the first thing you need to do is not have all your credit cards reporting a balance -- a big no no!
Only one card should report a balance of less than 8.9% of the CL.
All the other cards should have a zero balance.
Your utilization is way too high.

Doing this will give you a bump, if there are no baddies on your report. It will also decrease your DTI ratio

GL2U

Re: Looking For That Final “Bump”

Alex311 — Wed, 04 Jul 2018 20:00:01 GMT

I should clarify a little more. I have 8 total credit accounts. My TOTAL utilization across the board is 27% . Out of the cards that have are reporting a balance their utilization are about 50% INDIVIDUALY.....

Re: Looking For That Final “Bump”

CreditInspired — Thu, 05 Jul 2018 01:28:39 GMT

Hi OP

Thanks for the clarification.

It still, however, is VIP to follow the AZEO method (all balances at $0 except 1) and that one card balance should be less than 8.9%. This will get you a nice bump if no baddies on your CR.