Desperately Needing Advice on Fico Score

[Anonymous]

Good Morning All,

Hopefully someone can help or know the answer.

First, a little info about what I am doing.  I am in the process of purchasing a home.  My offer was accepted and I am to close on June 23rd.  My LO got me accepted into a program where your credit score needs to be 580.  The only problem in the interest rate is higher, I believe around 6.5%.  The LO said that if my credit score gets to 620 middle she could shop me around for a better/lower interest rate.  Keep in mind we have until the end of May beginnig of June.

Now my credit scores areTU 604; EQ 606; EX 627 and when I did the fico score simulator, it stated that if I paid all my bills on time for 1 month my scores should jump to TU 604 - 624; EQ 636 - 666. Now my question is this, when they say one month is that one month from the date that you pulled your fico scores?  I pulled my scores on 4/17. So should I wait and have my LO pull them on May 17th because I think she is going to pull them on or around May 9th.

Any and all advice is needed and welcomed.

Thanks in advance.

[Anonymous]

Do you have any CC balances? If so, what is your utilization?

Paying down CC debt is the fastest way to gain points, if that is an option.

[BungalowMo]

My current loan from 2 years ago is 6.62 with a mid 6 score.  You're sitting in a better spot than I am right now!

Trying to refi with nearly 0 equity...:-(

I know that doesn't give you an answer...just giving you another perspective.

Message Edited by BungalowMo on 04-27-2009 10:57 AM

[Anonymous]

The only balances that I currently have are: 1. Amex $1688 which I am an AU  and 2. Chase $18,638 my car payment, which is $511 monthly. 

I have been paying my bills on time and have paid off all my credit card debt to where they all have zero balances.  They have been this way for the last 4 months.

I just don't know what else to do to increase my scores.  I would truly like some advice.  Hopefully they can possible increase by the middle of May.  What do you think?

[Anonymous]

What is your overall utilization, including the AU?

Utilization = Total Balances/Total CL

Just to clarify--- your car loan is the Chase balance and that is reporting as a installment, right?

Message Edited by sidewinder on 04-27-2009 11:04 AM

[Anonymous]

The only monthly bill that I have is the car loan, yes it is with Chase as an installment loan, which is $511.  The Amex (AU) is paid monthly as well, but it is not included in my montly debt according to TU and EQ monthly fico balances.

In your opinion, do you think I should have the LO pull my report on May 17th instead of May 9th.  Because according to the fico simulator, my scores should be at the 620 mark needed?

[AndySoCal]

The thirty days the simulator is talking about is 5/17 or later. Keep in mind the simulator is showing a range of score possibilites. The credit cards you paid off are they showing your credit limit or high balance. If the credit limit is higher make sure the credit limit is reported will help the credit utilization that Sidewinder referred to. I  would also keep using the credit cards so they remain active and the creditor does not close the account due to inactivity. No big amounts just something small and pay off in full when the bill comes in.

[krielly]

and....if all else fails, and your scores don't improve, don't despair. 6.5% (if that's fixed) is NOT exactly a high interest rate if you look back a few years.

Good luck!

K

[Anonymous]

Thanks a lot AndySoCal.  All credit cards show the current credit limits and for the past two years they show on time payments.  I will inform my LO to wait until May 17th to pull the new report.  I will also try using the credit cards to make purchases like gas and other small purchases. Will having new balances appear on the credit report lower my scores even it is under the 9% utilization?

[Anonymous]

Thanks krielly.  6.5% is a fixed rate and you are right that it is not bad. I will keep you all updated on the status.

Thanks again.