Lower Balance - Raise Score???

[Anonymous]

Hi;

I recently learned that my credit score is 481.  I'm trying to improve it and would like to know how many (estimated) points my score will increase if I pay my 2 credit cards down to a 30% balance.  Currently one is at $470 w/ a $500 limit and the other is at $379 w/ a $400 limit.  Any input is appreciated.  Thanks in advance.

[Anonymous]

It's hard to guess. Have you tried the score simulator on this site? It is usually fairly close.

With those balances, I'd expect a few points, if you can get your total util to under 9% you'll get even more.

What else is hurting your score that maybe you can work on? Any baddies?

[Anonymous]

The good news is that if you have credit cards, your prospects for score improvement are good. The biggest problem most people with a score below the mid-500s face is getting a credit card in the first place. That locks people onto what I call the Bad Credit Channel--all bad credit on their CR, all the time.

The best things you can do to improve your credit are:

1. Pay down your CC balances to 10% or less of your credit limits.
2. Make sure you're on time for all payments.
3. Start with your most recent delinquency or baddie, and see about PFD or GW. Just be aware that if it is a collection or charge-off, and you're within SOL, you can be sued.

[Anonymous]

Both of these cards have a 94% utilization with an overall total utilization of 86%.

You must do what ever you can to lower your utilization.

Remember 30% of your score is in the amounts owed.

Pay as much as you can to the one that cost the most in interest.