topic Re: Increasing FICO Score in Rebuilding Your Credit

Increasing FICO Score

Anonymous — Tue, 17 Nov 2009 04:06:31 GMT

I am having difficulty understanding my various FICO scores which is now preventing me in moving forward with getting a mortgage loan. Long story made short......A few years ago I went through a divorce that impacted my score. In October 2009 my middle score TU was 605. I have 2 open credit cards, both were at 98% utilization but no late pymts. on them. I have 2 closed credit accounts that I am still paying on, 1 had a credit limit of 15k with a current balance of 6,800 and the other card had a credit limit of 7,400 with a balance of 9,000 (although it states current and no late payments for 14 months. I was told my 15k CC that has me under 50% utilization doesn't count because it was charged off and I'm just making pymts. Therefore on the 3 credit accounts they are looking at my 2 open and 1 closed CC. My total debt utilization at the beginning of October was reporting at 110% so 10% above my credit limit. My other account is a an auto loan with an orignal balance of $26k and a current balance of 2,600 (I had 1 late on it 15 months ago).

At the end of October I paid my 2 open credit cards down to a 2% utilization to a balance of $30 on a credit limit of $810. My consumer FICO score increased on both TU 645 & Experian 656 however the lender FICO score has not changed at all! So today after spending close to 2 hours on the phone, another hard inquiry and still not able to move forward on getting a mortgage loan I was told that my closed Chase account reporting current with no lates for over 14 months is impacting my score because I am over the credit limit.

Tonight I paid 2 on ,000the Chase account now my balance is 7,000 and credit limit is 7,400 and my other 2 open credit cards are still at a 2% utilization. The combine payments will bring my total CC utilization to 85% (2 cards paid and 1 with a balance)

Does anyone have ANY insight or advice that would help me increase my score????

Re: Increasing FICO Score

Anonymous — Tue, 17 Nov 2009 06:20:03 GMT

Does anyone know if your FICO score goes down by going from 110% utilization down to 85% utilization? Is there a certain % you have to be at before your FICO score is increased?

Re: Increasing FICO Score

BungalowMo — Tue, 17 Nov 2009 13:18:54 GMT

It's hard to say exactly what % will give you "what" score, but just keep hammering away at that balance. Get those other 2 cards down to 0% & put them away! I'd say a good start is getting your util under 50%...but it gets better under 25% & then under 7%. (every util drop helps!)

The card that's a CO....WHO are you making payments to?? If it's a CO, the balance on your reports says $0, right??

Re: Increasing FICO Score

Anonymous — Tue, 17 Nov 2009 14:09:28 GMT

What are you asking when you say CO?

Re: Increasing FICO Score

BungalowMo — Tue, 17 Nov 2009 14:14:39 GMT

Charge off. See the abbreviations link in my sig. You'll refer to it often here til you can recite it in your sleep!

Who is reporting? this could be OC and/or CA

What is the balance? If SOLD...OC will say $0 & CA will show a number

What is the status? If charged off...OC will say so

Re: Increasing FICO Score

Anonymous — Tue, 17 Nov 2009 18:54:07 GMT

UNVL Citibank is reflecting the charge off, I have been makiing the pymts. through a 3rd party and have paid off $10,800 in the 18 months. The balance on the CO :-) still shows 6,800