Credit Score

[wynona01]

Ok, i just purchased my fico score for transunion. I'm not surprised that my score is 497. I have a public record from last year and about 4 items that are due to come off sometime in 08. I have about 30,000 so far in student loans but they are in deferral. Right now i have 2 credit cards Imagine Master Card credit limit 1,100 available credit 109.74 current balance 990.26. I also have a Rewards 600 Visa card, credit limit 500. Available balance 164.00 current balance 335.00.

According to my score simulator, i need to bring down my balances for a higher fico score, but what my concern was is that none of my student loans are helping my credit at all. Is it because they are not in payment status?  I really want to bring my score up, so any suggestions on how  much i need to pay on my credit cards to get my score up? As for the judgement, i know that is having a negative impact as well. I am planning on paying it off at the beginning of the year it is 1377, will that help my score as well or is the damage already done?

[Anonymous]

I would first take care of the Judgment first and formost.   It won't improve your score by paying it but you will get rid of it and any possible means that they can enforce to satisfy the judgment  ( wage garnishment, bank account seizure, tax refund seizure, and even asset seizure)   So that should be your first concern.

Once that is done than get started on getting your balances down on your credit cards, having your balance under 30% will go a long way in improving your score.

You are right about the student loans not helping yet because they are in deferment.  As of right now I would keep it that way so you can concentrate on the judgment and the cc balances.   Once your student loan is out of deferrment and you start paying on time that will also help your score.   But as from experience,  DO NOT DEFAULT.    It is a killer.    IMHO the only thing worse than a BK on your credit score is a defaulted student loan, it will nuke it.    So financially as of this moment it is probably best that it is stll in deferment.

so I would do this in this order

1.   Take care of the judgment, the longer you wait the more you open up the possiblity of some form of seizure of assets.

2.   Pay down your CC balances as low as possible

3.  When Student loan is out of deferment, pay on time and don't miss a payment.