topic Re: Utilization in Rebuilding Your Credit

Utilization

Anonymous — Sat, 19 Feb 2011 21:39:31 GMT

Well I guess I will see what happens. I just paid all of my credit card accounts off except one which I left $1. I was at about 76% utilization according to myfico reports. I had 5 different accounts and each was at the 70% to 80% utilization. Besides the high utilization I had 5 medical collections, I just paid two in full and they agreed to delete them. I was going to pay the other three but my LO said it would be more of a help to get utilization down and the medical debts would not interfere with getting a home loan. These medical collections are all 6+ years old.. That is why I went this route. Then I have a public record showing on just Equifax. I was never really served. I only found out about it when I got a notice from my bank saying they were trying to garnish money from my checking account. I made arrangements and paid it immediately in full. Lastly, I had (3) accounts that had a 30 day late from over a year ago. I am in the middle of trying to get them goodwilled. It might help now that they are paid in full.

So, there is my story of where I sit. Is there any optimist that think I may get at least 20 points on this? My Equifax is currently 620 and Transunion is 640. Not sure what Experian is. According to myfico simulator they are saying 650-690 for Equifax and 660-700 on Transunion.

Re: Utilization

llecs — Sat, 19 Feb 2011 22:20:06 GMT

~~What will your new CC util be?~~

Ah....caught the $1 mention....maybe 70-90 points if all of those CCs were/are still open.

Per the CAs, the two being deleted...are they newer or older compared to the others, or are all 6+ yrs old?

Re: Utilization

Anonymous — Sat, 19 Feb 2011 22:28:01 GMT

The two medical collections that I paid for delete were a little newer, 2007. 70-90 points sound great. As long as I get at least around 20 or so I will be very happy. That should give me the go ahead for my VA loan with me knowing Equifax would be 640+ and Transunion 660+. My lender said they like to see midscore of a 640. I have not had the lender pull my credit yet so I may already be where I need to be with not knowing what Experian is. I just wanted to wait until I knew I had to scores at 640 or above.

Thanks for the response.

Re: Utilization

llecs — Sat, 19 Feb 2011 22:34:51 GMT

Make sure everything has updated before pulling the mortgage trigger. I closed about 2-3 weeks ago and I had always been under the impression that they'd pull again and qualify for even a lower rate if scores had changed. That wasn't the case and had I waited just 1 friggin week, I could have saved on the PMI at the least due to higher scores in that one-week period.

Re: Utilization

Anonymous — Sat, 19 Feb 2011 22:52:58 GMT

Will do. Thanks for the tip. Luckily for me I should not have to worry about PMI with a VA loan but I do want my score to be as high as I can get it prior to getting it pulled by lender.