What middle mortgage score are you trying to achieve?
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.
Roughly at the 2 year mark is when you may see some relief from the score penalty on the 30 day delinquency.
@jwpezd wrote:My utilization is at 35%
What is your current reported individual and aggregate utilization %?
@jwpezd wrote:Thank you for the thorough response! If I am reading this correctly I need to get overall utilization down below 28% and should see a 10-15% bump. Similar to that every card that every card applies the same, so for every card that is above said threshold I should see a bump when brought under.
Yes, you need to reduce your utilization. Once you cross a scoring threshold is when you will see a score improvement. Ideally, 8.9% and under for aggregate utilization and individual utilization should not exceed 28.9% is optimal.
what I find odd is that my score 8 is roughly 60 points higher in each.. but more than anything my experian is mortgage score is at a 764 in comparison to the other two with the same exact file.. I seriously cannot figure out why.
You'll have to scan your Experian reports versus TU and EQ and compare the differences; e.g. accounts, age of accounts, derogatories, delinquencies, etc.
I would like to get to a 700+ mid score (ideally higher), but not sure I can do that without depleting too much of my savings.
List your individual and aggregate utilization %. Then, we can determine if it's possible.
See comments in red.
@jwpezd wrote:Aggregate is 35% if I am understanding that is the overall utilization.
individual is the following
1 card is at 65%- highest balance but can pay down below 48%
1 card is at 23%
1 card (PayPal) is at 71% can pay below 48%1 card is at 68% lower balance, can pay in full or below 28%
1 card (Home Depot) is at 23%1 card is at 51% can pay down easily
4 other cards that are paid off or at 1% or less
My total revolving limit is 108k, and currently have 34k in balances.
Work on the low dollar accounts. The more accounts you can bring to zero would be great. The older scoring models EX2, TU4, EQ5 like AZEO All Zero Except One card reporting a balance.
It appears you had 100% of accounts reporting a balance? Try for under 50% of accounts reporting a balance, then 20% of accounts reporting a balance.
For individual accounts; get it under 68.9% then 48.9% then 28.9% and so forth.
I understand you are wanting to keep $ for reserves. You'll have to find a balance on that and paying off your debt to improve your score.
Your outstanding debt and your DTI Debt To Income will come into play. Talk to a loan officer for best course of action.