@Anonymous wrote:
Hi, my credit score for mortgage version down by 30 points due to using credit cards by $3,000. If I pay down the cards by $2,000 (figuring out 30% utilization and paying down by that) would that raise my score close to 630 in a month'since time?
Hi Julie,
Depends what your limits are on the cards, what I'd recommend is list the individual cards out with balance and limit as there's 3 different parts of the revolving utilization calculation... and we can help determine where the best use of the $2K is from a FICO scoring perspective. That said if you're 30% aggregate utilization unless your balances are skewed strangely not sure that 30 points are in the cards, and as such it would help to post whatever negatives you have too. Was the 600 the score pulled by the mortgage lender?
Simple example for me on the credit card side:
BOFA - $0 / $2600
Amex - $136/ $9000
Chase - $3128 / $22000
etc.
@Anonymous wrote:
We were discharged Ch 7 bankruptcy in 8/2011. A couple of cards included in bankruptcy marked items as charge off and I recently disputed it.
And doing this list, cards went up more than realized spouse used. I can at least have $2000 pay downed by end of month.
Cards now........ what it was 2/16
$3754/4400.. 3900
1563/2500.... 0
1053/3500..... 0
4800/5000....4600
1648/2000.....1700
480/900.....91
445/2000.....100
Closing on our house is 7/29 and mortgage will pull credit again mid July. Version 2 went from 631 to 606, need it to be at least 620.
Oh ouch. Are the disputes still active or on the file? That can do wierd things to the score if you did that recently and the lender likely will make you remove them anyway actually. All bets are off score wise when active disputes are there TBH.
If I had 2K at a shot at optimizing that:
Pay off the 480 and 445 cards completely, get them $0. I'd kick another 400 or so to the $5000 line, and the rest I'd probably just hold for now / minimum payments across the other lines, or if I had somewhat more than that I'd see if I could pay the next smallest balance off.
@Anonymous wrote:
Paying off the little balances will not negatively affect score since paying them off? How do I remove the disputes? If I can do all this mid June the latest, should that help my scoremail enough to get it reflected for July? My fico 8 scores went up while for Trans union mortgage score went up and the other two for mortgage went down.
Part of the revolving utilization calculation is number of cards with balance vs. number of cards total (or revolving tradelines to be specific).
I don't have good numbers for EX v2 but going from non-100% to 100% is almost assuredly a drop based on other people's data. The key dates are when the accounts report, so ideally you get them paid down before the next statement cut otherwise you're stuck waiting a month from there and there's possibly a delay on the reporting side too. Sooner the better when it comes down to it.
Regarding removing disputes:
