Bad or Good Credit?

[Anonymous]

I have recently applied for a loan and was denied. I want to get my score up but don't understand how it went down. I have never paid late on anything. The following is a list of my debt.

Mortgage             $117,898

Auto Loan            $ 24,600

Equity Loan         $ 10,500

Visa Credit Card $   4,000

Furniture Card    $   2,700

CitiFinancial        $   2,685

Macy's                $      848

Citi Platinum       $      500

Paypal                 $     175

Kay Jewlers        $     147

I have also co-signed for someone for an auto loan of $10,000. One of the reason's why I was denied because this payment put me in debt more than I make. I don't know what to do.

Message Edited by bgonzalez706 on 12-03-2007 08:05 AM

[Anonymous]

what are your cl's.  Need to find your utilization rate and work to bring it down.  If the cards are maxed or even half maxed, your score won't go up.

[Anonymous]

unfortunately they are all maxed out except for Macy's and Kay.

[Anonymous]

hi bgonzalez, welcome to the forum. Here you will find a wealth of information to help you get credit healthy.

We can offer opinions/advice, but you need to tell us details of your accounts. The info you've provided thus far, is to incomplete to come up with suggestions.

1. Credit Cards: which one's? Credit limits on each? Relist the balances on each, please.

2. What is contained in your Credit Reports, and which one's? Any lates, bankruptcies, judgements, liens, foreclosure, COLLECTIONS, etc etc etc.

Your question was easy to ask, yet very difficult to answer, as there are so many variables to consider.

[Anonymous]

Equity Loan  $10500 maxed out

CitiFinancial $2685

Visa Credit Card $4,000 maxed out

Furniture Card $2700 $4000 limit

Macy's $848  $1100 limit

Citi Card $500 maxed out

Pay pal $175 maxed out

Kay $148 $500 limit

I've never been late & make a payment higher than the minimum

Message Edited by bgonzalez706 on 12-03-2007 08:03 AM

[George2037]

Once just one of your CL's reach the 80% of it's available credit you get dinged pretty hard, looks like you have 5 of them in that situation.  I would pay down the CC's and most definatly find a way to get rid of the CitiFinacial (I got one two years ago and they are the #1 baddy listed by MyFico in the little scale thingy they use, consumer Finace Loans are not a good thing to have).

[Anonymous]

Later on this month I'll be receiving a $400 bonus from my job. What should I apply it towards so that it could make the biggest difference. Also, I'll be getting about $4000 from tax returns next year. What should I apply that to? Should I work on getting rid of citifinancial first or the other cards?

[George2037]

MOst definatly Cards first the balances are way to high.  Optimum balances are under 1-9%.

[Anonymous]

Closing any of your accounts, will hurt your scores, not help them.

You are in dangerous territory regarding your credit limits. Please stop using them completely. You will have to go to the bank frequently to be sure, but limiting spending on them while paying them down will only help you.

Pay as much as comfortable possible, even if it hurts. You MUST get the utilizations down.

[Anonymous]

Since most of your cards are maxed out, you need to try and pay off the ones with the highest interest rates first.