What should I do?

[Anonymous]

Pulled my EQ CR on 8-31-2012 from the EQ website, says my FICO is 643, It was 637 on 8-1-2012 (lender pulled). When the lender pulled my report, my total util was 34% now down to 24% probably the reason for point increase. I will list my TL below and if anyone can tell me the best way to get a few more points (if at all) I would greatly appreciate it. I'm looking for some point gains with EX mainly (wish I can check FICO), so Im assuming I have gained some points there with what I've done so far.

As listed in both EQ and EX CR:

Balance       Avail         CL          Util.

4165           13365      17530      24%

TL as listed  in EQ and EX:

Balance                        CL          Util.

116                               750        15% account 1

722                             2500        29% account 2

477                             2700        18% account 3

2150                           4000        54% account 4

278                             1000        28% account 5

360                             5000          7%  account 6

0                                   530          0% account 7

92                               1000          9% account 8

Total:

4135                         17530         24%

So I have about 1k maybe more to put towards paying this down, what account's would I need to work on that would have the most effect with my Util. Besides the obvious.

Also note that I have the same negative indicator's with both EX and EQ if this matters.

Thanks

[jsucool76]

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@Anonymous wrote:

Pulled my EQ CR on 8-31-2012 from the EQ website, says my FICO is 643, It was 637 on 8-1-2012 (lender pulled). When the lender pulled my report, my total util was 34% now down to 24% probably the reason for point increase. I will list my TL below and if anyone can tell me the best way to get a few more points (if at all) I would greatly appreciate it. I'm looking for some point gains with EX mainly (wish I can check FICO), so Im assuming I have gained some points there with what I've done so far.

As listed in both EQ and EX CR:

Balance       Avail         CL          Util.

4165           13365      17530      24%

TL as listed  in EQ and EX:

Balance                        CL          Util.

116                               750        15% account 1

722                             2500        29% account 2

477                             2700        18% account 3

2150                           4000        54% account 4

278                             1000        28% account 5

360                             5000          7%  account 6

0                                   530          0% account 7

92                               1000          9% account 8

Total:

4135                         17530         24%

So I have about 1k maybe more to put towards paying this down, what account's would I need to work on that would have the most effect with my Util. Besides the obvious.

Also note that I have the same negative indicator's with both EX and EQ if this matters.

Thanks

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You pulled your score from the EQ website? If so, that is not a fico score, that's a FAKO. Edit: Unless it linked you to myfico.com, which some websites do. If it did not link you to here and have you purchase it from myfico it is most likely not a fico score. 

When it comes to paying down balances, I personally, would focus less on the effect on my score, and more on paying down the cards with the highest interest rates first. 

Good Luck! 

[Anonymous]

Yes it was a FICO score that I paid for on EQ website, but I did see 'other' products that they sell are FAKO's.

[jamie123]

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@Anonymous wrote:

Pulled my EQ CR on 8-31-2012 from the EQ website, says my FICO is 643, It was 637 on 8-1-2012 (lender pulled). When the lender pulled my report, my total util was 34% now down to 24% probably the reason for point increase. I will list my TL below and if anyone can tell me the best way to get a few more points (if at all) I would greatly appreciate it. I'm looking for some point gains with EX mainly (wish I can check FICO), so Im assuming I have gained some points there with what I've done so far.

As listed in both EQ and EX CR:

Balance       Avail         CL          Util.

4165           13365      17530      24%

TL as listed  in EQ and EX:

Balance                                   CL          Util.

116-116=0                               750        15% account 1

722                                        2500        29% account 2

477                                        2700        18% account 3

2150-154=1996                     4000        54% account 4

278-278=0                             1000        28% account 5

360-360=0                             5000          7%  account 6

0                                              530          0% account 7

92-92=0                                 1000          9% account 8

Total:

4135                                      17530         24%

So I have about 1k maybe more to put towards paying this down, what account's would I need to work on that would have the most effect with my Util. Besides the obvious.

Also note that I have the same negative indicator's with both EX and EQ if this matters.

Thanks

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My suggestion is shown in red letters above.

This would clear a couple of negatives in the FICO calculation.

1. You currently have 7 of 8 cards reporting a balance. FICO gives you a ding if 50% or more of your credit cards report a balance. If you pay them off as I have shown above you will only have 3 of 8 cards reporting a balance. That will be a plus for you.

2. One of your cards is reporting a balance of 54% of CL. FICO seems to give a larger ding to utilization if a card reports over 50% of its CL. Paying the one card below 50% UTI will be a plus for you.

UTI can be huge in picking up points. I think you might be pleasently suprised at the results.

Your goal should be having 1 card report less than 9% of the total credit line of all your cards and the remaining cards report ZERO. This will give you your highest FICO score as far as utilization is concerned.

So in your case it works like this:  $17,530 X .09 = $1577

You want to have 1 card report less than $1,577 and all the other cards report zero.

Good luck!

Stop back and let us know how it turns out.

[jamie123]

Just a clarification for your future payments after you do as above....

The sooner you get to only one card reporting a balance the better. Pay off the remaining card with the smallest balance first. FICO only likes to see 1 card reporting a balance. You will get a ding for every card more than 1 that reports a balance.

[Anonymous]

Wow thanks a lot for the help, that's exactly the kind of detailed answer I was looking for   Yeah I just got caught up in the 0% financing with the larger balance. But yes I plan on only keeping one CC with a small balance, I will post back sometime if anything big changes.

Thanks again

[Anonymous]

Two more things, this was my wife's report but I have only 4 of the 8 accounts listed. Would this hurt my score's if I carry a small balance on one of the cards? And I'm sure at some point I would have to use the other cards from time to time to prevent them from closing right?

[jamie123]

The only time you REALLY need to do this (Preen your scores.) is during the month BEFORE you plan on applying for NEW credit or if you want to see exactly how high you can get your scores. If you report balances but don't need NEW credit in the next month, who cares if your score drops? (And it will drop, sometimes a lot.)

You can use your cards as much as you want during the month. You just need to go online and pay them in full a couple of days BEFORE the payment due date. You then can't use the card for 3 to 4 days AFTER the payment due date so the credit card company reports a zero balance. IT IS THE REPORTING BALANCE FROM THE CREDIT CARD COMPANY THAT COUNTS! The credit card company will know you used their card but the 3 credit reporting agencies will be none the wiser. If you want to do this all the time you basically loose the use of the card for about 1 week per month. You just need to switch to a different card during that week.(A card that has a different due date.) It will keep your scores at the maximum all the time.

Using credit cards should be thought of as a short term loan from a friend. You should always have the money in the bank to pay them in full each month. If you don't do this you are just asking for trouble. S&^% happens! Then people start missing payments and ruin their credit for a long time. Just look around this forum if you need examples. (I was divorced, I lost my job, I was in a car accident, I had a medical problem, etc.)

FICO likes to see 1 card report a small balance and all the others zero. For every additional card that reports a balance you will get a small ding for each card. If you have more than 50% of your cards report a balance the ding gets larger. If all the cards report zero your score will drop a bit.

Credit card companies like to see cards paid off every month in full. As a matter of fact, if I were you, after you get these cards paid off I would call all these CC companies and ask for credit line increases. That would be the perfect time to ask for them.

Why are you trying to get your scores up?

[Anonymous]

Thank you for your time to this thread.. Well we really need a new home for our growing family And trust me, we have contacted companies like Wells Fargo, FGMC and likes claiming they can finance with a mid FICO of 620. Well when we really get into the loan process, they (LO's) keep pushing us to get a 640 mid score. I know from reading these boards, others have had success with sub 640 lender's but at what cost to the wallet?... And being picked and prod for every little thing and dime we spend. We want a home this is true, but we believe working on our credit will be much better in the long run and thus make our next loan process a better experience. My two cents anyway.

[ACsteel]

I would say PIF all of them if you could, but as one other person suggested, seek the highest interest bearers first, b/c the priority then becomes how you can best save your hard earned money, after attacking those knock the left over out.  I also notice you have many many cards, perhaps also minimizing your cards after they are paid off or consolidating some of them if possible would benefit your future decisions and outcomes as well. The best of luck for you and your family.