Should I pay down cc or payoff cc to increase mortgage Fico score in 30 days?

[Anonymous]

Hi, I have been researching the forum. I applied for a mortgage loan and my mortgage scores are 597, 598, 655. My middle score will not allow us to qualify for a mortgage.

The lender wasn't helpful on guidance. I need atleast a 620 for a conventional loan. I have been snowballing my credit cards; so, the ones that are still open are between 50%-90% utilization and I have about $9k left in credit card debt. What's the quickest way to increase my mortgage score within the next month? Is it possible to increase a mortgage score 25 plus points that quickly? Should I pay down cc as much as I can to get several of them to 25% or try to pay off some and leave some with higher utilization. I do have a loan with a balance that I can afford to pay off, but it seems like paying the cc will increase my scores quicker. 

If anyone has been in this same position, please offer advice. 

[AllZero]

If you care to share data, members can provide feedback.

E.g 

Card 1, balance/credit line = utilization %

Need to know individual and aggregate utilization %.

[AllZero]

I would recommend reading the below from ABCD2199
The Truth about Credit Card Utilization
My 11 Rules to Credit Rebuilding
FICO Score: What to pay down first?

[AllZero]

Not knowing your exact details, below are benchmarks for FICO 8. Scores lenders use for mortgage are EX2, TU4, EQ5; should react similarly.

Remember these aggregate utilization thresholds: 8.9%, 28.9%, 48.9%, 68.9%, 88.9%
If you're not crossing a threshold, you won't be getting points.

Aggregate: 10-15 points for aggregate crossing a threshold.

Individual: ~5 points points for individual crossing a threshold.

Look into AZEO Technique. All Zero Except One card reporting a small balance e.g. $5-$10. Use a bank card. Do not use a store card.

Get your CC aggregate utility at or below 8.9% for full FICO points optimization.

Scores will react positively with one revolving credit card reporting a balance.

You might want to address any derogatory you have; delinquency, charge off, collection, etc. If they are updating monthly, it'll keep your scores suppressed.

[AllZero]

What is the utilization % for your installment loan?

Is that your only open installment loan?

[Jnbmom]

Getting your utilization down will certainly help.

Your 2 scores under 600, do you have negatives on those? 

[Anonymous]

I don't have any negative items reporting. My overall utilization total is 51% for my total revolving credit card debt. I read that Fico views anything over 89% as maxed out.

My cards remaining are utilized at the following percentages: 93, 92, 90, 84, 78, 65, 60, 50. 

I'm thinking about trying to get all of them to atleast the 68% and then some of them lower. I've always just tracked my actual credit score and now, I'm recently finding out that mortgage score, fico, and credit are all different.

[Anonymous]

I have 3 total installments. The lowest is at 25% when it reports for Feb since I only have a few payments left on it. 

[Anonymous]

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@Jnbmom wrote:

Getting your utilization down will certainly help.

Your 2 scores under 600, do you have negatives on those? 

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No, I do not have any negatives.

[AllZero]

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@Anonymous wrote:

I don't have any negative items reporting. My overall utilization total is 51% for my total revolving credit card debt. I read that Fico views anything over 89% as maxed out.

My cards remaining are utilized at the following percentages: 93, 92, 90, 84, 78, 65, 60, 50. 

I'm thinking about trying to get all of them to atleast the 68% and then some of them lower. I've always just tracked my actual credit score and now, I'm recently finding out that mortgage score, fico, and credit are all different.

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68% is a starting point.

The more accounts you can bring to zero will be beneficial.

You're being penalized heavily with maxed out cards.