Utilization

[Anonymous]

Help I'm trying to purchase a home and would like to know if it would raise my fico score more by paying off a department store credit card to a zero balance OR using that money to help pay down utilization on a revolving mastercard?

Thanks any help would be greatly appreciated!

[Anonymous]

specifics on each card please (balance and CL)

[Anonymous]

Credit Card         Limit               Balance

USAA                  $25000

[Anonymous]

Credit Card         Limit               Balance

USAA                  $25000 

[Anonymous]

Credit Card                      Limit               Balance

USAA                              $25000           $24400

BMW                              $15000            $14000

CCU Master Card          $5000              $4700

Chase                            $700                 $600

Citi                                  $1500               $1000

Hooters                           $10000             $9000

Dillards                           $1700                $1600

Valero

[Anonymous]

Credit Card                      Limit               Balance

USAA                              $25000           $24400

BMW                              $15000            $14000

CCU Master Card          $5000              $4700

Chase                            $700                 $600

Citi                                  $1500               $1000

Hooters                           $10000             $9000

Dillards                           $1700                $1600

Valero 

[Anonymous]

JMHO but you need to get the utils down on ALL the cards except for the car loan if that is what it is. You can use the snowball method or pay off highest first- just try to get them all down under 20 util right now and then shoot for ten.

Question- not trying to be obnoxious- but have you already been preapproved for loan? What is you DTI ? What type of loan value are you looking at.

It's just that I am thinking that lenders like to see w/ most conventional lending most of those balances paid nearly off.

Anyone correct me if I am wrong.

[Anonymous]

Bump for more ans. as I am wondering if you can afford to pay off almost all those cards right now.

[Anonymous]

Also have Valero Gas Card     Limit   $700              Balance $200

Two installment loans   (one car loan with balance $11000 and one small installment loan with the balance only $361)

have 5 Citibank Premiers that don't display the limits but the balances are all at around $9000

Have $30,000 that I will take out of savings and pay down the balance on cards with the goal of purchasing a home by the end of this month.  I plan to use rapid rescore with my mortgage company to report the new balances.

Can anyone tell me where I should distribute the $30,000 to get the most bang out of my fico scores.

The smaller cards that report limits were the ones I was planning to pay off first for example

(Capital Credit Union Limit $5000, Pay Balance 0

Citi Bank                    Limit $1500  Pay Balance 0

Chase                        Limit $700    Pay Balance 0

Valero                        Limit $700    Pay  Balance 0

Dillards                      Limit $1700     Pay Balance 0

Installment Loan        Balance $361   Pay Balance 0

Hooters                      Limit $10,000  Balance    $5000 

BMW                          Limit $15000   Balance    $7500

USAA                         Limit $25000   Balance     $17600

[Anonymous]

Contract for home is $525,000

Placing 20 percent down $105,000

Have 12 month reserves.        Ran fico simulator and it indicated that score would go into the range from 635 -665 if i paid $32000 in one month.

Just curious where for utilization to disburse funds.