Hello guys, I started rebuilding my credit 6 months before buying a house (Closed in Jan 2017) from the low 600s to 695 middle mortgage score and had a 4.5% interest rate.
However, ever since getting the home I feel like my credit utlization is becoming more and more of a problem because of high usage. When I closed on the house my credit utilization was at 5% (500/10000). Now my utilization is at 80% (8000/10000), I was denied credit line increases because my bank account was closed and I failed to update the credit card company, so they had a bounced auto pay. Now my scores are stuck in the 670 ranges because of the high credit utilization.
So, the question is, what strategies can I take to increase my credit score? Should I apply for another credit card to lower ultilzation %? Should I take a personal loan from a family member to pay down the credit debt and wait three months to ask for credit line increases?
My salary is 60k/yr and I pay $1500 in monthly mortgage payments.
If you can take out a personal loan from a family member and pay off the debt, it will definitely help your scores. Was the debt related to getting the house? I ask because you don't want to add any new debt to what you already owe, plus you don't want to damage a relationship with a family member by not paying back the money in a timely manner. (I highly suggest writing out a contract between you & them - amount borrowed and how much per month you're going to pay them back, so there are no misunderstandings.)
This is my best answer, based on what you've posted. (You didn't state how many cards you have now. I recommend at least three credit cards to get the most points.) I'd wait six months and both ask for CLI (assuming they are NOT going to be HPs,) and get another card. Or two, just for utilization padding.
Thank you for the reply, I have 4 cards total, 2 credit lines, and 2 store cards. I may just have to wait 6 months as I do not want to be borrowing from a family member. I am just afraid, being that I am the only one that graduated college and currently work in the field with my degree, asking a family member that hasn't even finished high school for money is kind of an embarrassment to my education.
@killertofu wrote:Thank you for the reply, I have 4 cards total, 2 credit lines, and 2 store cards. I may just have to wait 6 months as I do not want to be borrowing from a family member. I am just afraid, being that I am the only one that graduated college and currently work in the field with my degree, asking a family member that hasn't even finished high school for money is kind of an embarrassment to my education.
We're human, it's ok. Do me a favor and list each of your cards for me: current balance/total limit
