Best way to manage these cards to get score UP?!

goodygoody · ‎02-13-2012

Hi there. My husband and I are trying to get our scores as high as possible so we can buy a house by summer... He's at 670 right now, I'm at 600. My CU was at 98%, and his was around 75%, so we've been focused on that.

We currently have the following cards:

We each have a Capital One with limits of $500 each and each a WalMart card with limits of $400 each. I also have a Children's Place card with a $250 limit. These are the only cards we have, and we'd really like to get our credit up so we can get something with a higher limit.

We recently got our tax return, and I've paid all these cards off to $0. So starting at square one, what is the absolute best way to use these cards and get our credit up? Should we each just use one card and keep it below 10% usage? Or do we need to use them all a little? Confused about what the best thing to do is now that they're paid! Thanks for any help!

haulingthescoreup · ‎02-13-2012

@goodygoody wrote:
Hi there. My husband and I are trying to get our scores as high as possible so we can buy a house by summer... He's at 670 right now, I'm at 600. My CU was at 98%, and his was around 75%, so we've been focused on that.

We currently have the following cards:
We each have a Capital One with limits of $500 each and each a WalMart card with limits of $400 each. I also have a Children's Place card with a $250 limit. These are the only cards we have, and we'd really like to get our credit up so we can get something with a higher limit.

We recently got our tax return, and I've paid all these cards off to $0. So starting at square one, what is the absolute best way to use these cards and get our credit up? Should we each just use one card and keep it below 10% usage? Or do we need to use them all a little? Confused about what the best thing to do is now that they're paid! Thanks for any help!

Use them as much as you like, but pay two completely off before the statement date. Not the due date, but the date that the statement "drops" (posts, etc.) --when it shows up on line, and on the printed version, the "statement date." That will result in those two cards reporting $0 balances.

Do the same thing with the third card, except that you pay off all but $10. Let that $10 report on your statement, and then pay it off immediately. (It's awfully easy to forget to go back and pay the second time. Don't forget!!)

You might not want to do this on a regular basis, but in terms of maximizing your scores, this is a great tactic. You want to let that $10 report on one card, because most people lose points for all reporting $0.

Using all three keeps them active per the lenders' point of view. You don't want to be closed down for non-usage. The lenders don't care a flip whether your statement shows $0 due or $25 or $250. They just want you to (1) use the cards and (2) pay them. They might like it even more if you carry balances and pay interest, but that's not in YOUR best interest, either for scoring or FICO scoring.

Just make sure that whatever you put on the cards, you have enough cash on hand to pay off immediately. In this way, you're making credit your servant instead of your master.

Good luck on your house purchase!

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007

namvet · ‎02-13-2012

@goodygoody wrote:
Hi there. My husband and I are trying to get our scores as high as possible so we can buy a house by summer... He's at 670 right now, I'm at 600. My CU was at 98%, and his was around 75%, so we've been focused on that.

We currently have the following cards:
We each have a Capital One with limits of $500 each and each a WalMart card with limits of $400 each. I also have a Children's Place card with a $250 limit. These are the only cards we have, and we'd really like to get our credit up so we can get something with a higher limit.

We recently got our tax return, and I've paid all these cards off to $0. So starting at square one, what is the absolute best way to use these cards and get our credit up? Should we each just use one card and keep it below 10% usage? Or do we need to use them all a little? Confused about what the best thing to do is now that they're paid! Thanks for any help!

You should see a nice increase in your credit scores when the above mentioned payments post to your accounts. I would keep one card showing a small balance each month (30% or less of credit line). Some have good results at 10% or less. I would use all the cards and pay off when get statements each month. As i mentioned keep one showing a balance. Your score should be in good shape when you get ready for the mortgage application. If you need additional credit make sure the app is at least 6 months prior to the mortgage app.