In Order for My Score to Jump Soon?

[Anonymous]

In seven to ten days I will be paying off nearly all of my debt.  I want to purchase a home when my lease is up in two months.  In order to go in to obtain the best loan I would like to expedite my FICO score rising.  As I pay off these debts should I ask them to notify the credit reporting agencies like Equifax etc as soon as possible or how do I go about speeding up the process once they are paid off.?

[Junejer]

What does the debt consist of?

[Anonymous]

The debt consists of several credit cards all paid on time but maxed, Finance Co. loan, credit union loan and several online store credit accts.

I have 6 and a half year late payments about ready to fall off, nothing since then.  No collections or anything in that category.  My FICO accts on all three credit unions say the same thing, very good payment history and very good length of history but not good amound of credit.  The scores are 608-617 and 647.  Transunion is always my buddy

I will be paying all of these accounts down to 0 and near 0.  From reading on the message boards I assume it is better to leave some balance on the older credit card accts.  I am for sure paying off the finance company loan. 

[Junejer]

You want util to be between 1-9% both individually and overall, however, you also don't want more than half of your open accounts to report a balance. So have some $0 balance accounts and allow less than half report a small balance monthly. So, if you have a total of nine open accounts, don't allow more than four to report a balance.

GL2U

[Anonymous]

Thank you so much.  This forum is fantastic.  It is so exciting to be able to improve my score and finally get back into owning my own home.  This is why I want to expedite my score rising.

One final question.  How do mortgage folks get a score, do they average out the three reporting agency scores or do they usually just pick one of the agencies.

Thanks so much again for your help, you are great!!!

[Junejer]

Mortgage lenders use the median score (often referred to as the middle score). So, if your scores are, for example, 721, 707 and 698, your middle score is 707 and that's the one that they will use to obtain interest rates, etc.

[Anonymous]

Op- you should see a jump if your cards were maxed out. However, I have seen people loose points for paying off loans. Good luck with the mortgage!!


mauinokaoi- please start your own message so we may further help you