topic Re: Point question in Rebuilding Your Credit

Point question

Anonymous — Wed, 27 Mar 2013 01:32:53 GMT

Hi:

We are trying to get my husbands score up so we can buy a home. At the beginning of the month we paid off 2 credit cards which are suppose to report today. That leaves another one which is under 30%. We also have a Cap. 1 that we just paid $500 on a 1,000 limit. They will not report until the end of next month. We also have a personal loan that we paid down to 30% and they report the first of the month. Our line of credit we paid down to 30% and the report around the first of the month. Oh.. I forgot about one more credit card.. we paid down to under 30% of limit. They report begining of month. Can we expect a pretty good jump? We need to make 20 points.

Thanks!

Re: Point question

Anonymous — Wed, 27 Mar 2013 21:25:25 GMT

Any insight would be great!!

Re: Point question

DaBears — Wed, 27 Mar 2013 21:29:06 GMT

Depends on what else you have on your credit reports?

Re: Point question

Anonymous — Thu, 28 Mar 2013 00:21:05 GMT

All we have are the accounts I listed above. We had some baddies that we paid off 3 to 4 years ago. We have not had any late payments since. We had my husbands score up, but then last year we had a death in the family and ended up maxing out credit cards to get to the funeral. Do u think what we did will bump our score up?

Re: Point question

Shogun — Thu, 28 Mar 2013 00:24:45 GMT

I could see a bump from paying down the util on those revolving accounts. The util of the loan doesn't really figure into util, but will look better to an UW.

Re: Point question

Anonymous — Thu, 28 Mar 2013 00:29:12 GMT

Do u think it will be enough to get 20 points?

Re: Point question

Shogun — Thu, 28 Mar 2013 00:31:05 GMT

It's always a YMMV type of thing. I really couldn't tell you it will or not. But I can tell you that yes, it is possible.

Re: Point question

Anonymous — Thu, 28 Mar 2013 00:33:06 GMT

I did the FICO Simulator and it showed it should. I sure hope so. I know we made a mistake when we maxed out the CC's, but we felt we had no choice. We had to go to the funeral. Thanks for ur help!

Re: Point question

Shogun — Thu, 28 Mar 2013 00:38:35 GMT

You're welcome, and just so you know, max boost is 9% or less on your revolving util.

Re: Point question

Anonymous — Thu, 28 Mar 2013 00:39:25 GMT

What do u mean by that?

Re: Point question

Anonymous — Thu, 28 Mar 2013 00:41:44 GMT

How would I figure that out. The one CC limit is 1,000 and the line of credit is 2,000. Thanks!

Re: Point question

Shogun — Thu, 28 Mar 2013 01:12:29 GMT

@Anonymous wrote:
How would I figure that out. The one CC limit is 1,000 and the line of credit is 2,000. Thanks!

That would put your util at aroulnd 50%. If you were to pay it down below $200 that would give you the biggest boost on your score.

Re: Point question

Anonymous — Thu, 28 Mar 2013 01:43:46 GMT

On which one the CC or line of credit? Thanks!

Re: Point question

Anonymous — Thu, 28 Mar 2013 02:56:46 GMT

I think he misread your post. If you had a $1000 balance on a $2000 CL you would be at 50%. That isn't your case.

For optimum FICO scoring have all but one CC report a 0 balance and the other at 9% or below. YMMV so tinker around with the %.

You figure utilization on each card by dividing the balance by the CL. For an aggregate utilization, add all balances together divided by all CL added together.