Help, I need advice!!!

Anonymous · ‎12-19-2007

My husband and I are trying to get our FICO scores up before we apply within the next 1-2 years for a home loan. We have about 15,000 in credit crad debt that I would like to pay down below the 30% mark. How long does it take if I was to pay 2,000 toward our debt each month to see my credit score start to increase? We aren't sure if we should just save, save, save or pay down everything then save for our home after our credit card debt is lower. Any advice?

cobra19 · ‎12-19-2007

You may also want to consider applying for additional credit - too decrease ut.

If you pay 2k a month, you should see an increase right away. I'd try to get to <10%.

New York Yankees - 2009 World Series Champions. 27... and counting.....

Anonymous · ‎12-19-2007

Hi Jen, and welcome to the forum. There's a lot of good information here for you, and knowledgeable people here to help you.

IMO, paying down your cc debt should be a tip top priority, well before house shopping, as the amounts owed account for 30% of your FICO scores,which is a MAJOR factor when you apply for a mortgage.

The trick is to use the cc's minimally or not at all WHILE paying $2,000/mo on your existing debt.

And IMO, don't stop at 30% utils, but get it down below 15%, ideally 10% for maximum score impact, which is what you are looking for.

Hope that helps.

Good luck to you.

fused · ‎12-19-2007

JENTHOM wrote:

My husband and I are trying to get our FICO scores up before we apply within the next 1-2 years for a home loan. We have about 15,000 in credit crad debt that I would like to pay down below the 30% mark. How long does it take if I was to pay 2,000 toward our debt each month to see my credit score start to increase? We aren't sure if we should just save, save, save or pay down everything then save for our home after our credit card debt is lower. Any advice?

Welcome to the forums! Can you list your credit card limits and balances so we can see the full picture. Also have you read Tuscani's, one of myfico's moderators, credit scoring 101 thread? Here's the link.

http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&thread.id=2654