Need a boost of only 20 points

[Anonymous]

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@Anonymous wrote:

We are in the process of getting a USDA  home loan. My husband's middle score is 620 and he needs to boost that score quickly by 20 points. He has a $6,000 CC which is maxed out. A closed CC which is still with original creditor, but has a balance left of $600. A car loan with a balance of $2000. And a few student loans. All are in good standing. We have $1000 to put towards these debts. What would make the most positive impact on his credit score? 

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Pay the $1000 on this and ask your lender to to a rapid score...it might just bring you closer and ask if they "roll in" the 600.00 balance on the closed card into your home loan

Good Luck

[Anonymous]

Do the math.  The credit utilization for that closed account is 55%, still really high. The bureaus are going to look at the high credit of $1080 and the balance of $600.  If you put that $1000 on the $6000 balance, your utilization will be 83%, still really high.  I would pay off the $600 balance to be done with it and start snowballing the debt on the $6000 balance, try to get it at least under 50%. 

[Anonymous]

The easiest way to get a 20 point boost is A) to pay off that $600 dollar debt, just knock it out. and B) see if a really good friend or family member will add your husband as an AU to a card. Would have to be a card with under 10% utilization and at least a few years of history. 

[Anonymous]

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@Anonymous wrote:

We are in the process of getting a USDA  home loan. My husband's middle score is 620 and he needs to boost that score quickly by 20 points. He has a $6,000 CC which is maxed out. A closed CC which is still with original creditor, but has a balance left of $600. A car loan with a balance of $2000. And a few student loans. All are in good standing. We have $1000 to put towards these debts. What would make the most positive impact on his credit score? 

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Also, what is your credit score??? If yours is high enough, you could open up 2 balance transfer cards on your credit, and absorb some of that 6k debt. Then with his utilization under 30% on that card his score would rise significantly.

[Anonymous]

If you are in the mortgage process now or in the near future DO NOT open any new accts AU or otherwise. As I said before an underwriter would be very concerned about new accts...as in won't you need to worry about mortgage scores because you won't have one. Also AU acct are no good for mortgages and often times are required to be closed by the lender.

[medicgrrl]

I would bring the closed account down to 47% and put the rest towards the open account. Each card will be paid down below another scoring threshold. What's the balance on the $6000 card? Paying it all towards the $6000 card will most likely leave you in the same threshold as paying it down to about 87%, that's why I suggest putting the payment towards both cards. If you can get your combined balances below $4885, this will be a target scoring threshold for overall utilization.

[Anonymous]

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@Anonymous wrote:
If you are in the mortgage process now or in the near future DO NOT open any new accts AU or otherwise. As I said before an underwriter would be very concerned about new accts...as in won't you need to worry about mortgage scores because you won't have one. Also AU acct are no good for mortgages and often times are required to be closed by the lender.

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I don't think the part about AUs not being good for mortgages is 100% true. I'm a real estate agent in Missouri, and some of the lenders I've worked with actually condone it. She could ask her lender specifically what their general practices are on that point. It sounds like if he is unable to get a 20 pt boost, they're not going to qualify for the mortgage anyway. And with that high utilization, her husband is almost assuredly not going to get a 20 pt boost unless he brings that utilization down.

What is your current score OP? I would suggest just asking your lender directly if you can open up just a single balance transfer card, so you can hold some of his utilization on that 6k card. If you ask ahead of time and the underwriter says okay (knowing that is how your husband is going to get the pts boost needed) then you should be fine. 

[Anonymous]

Agreed that it is not an absolute nor is opening new accts. For someone with 800 scores no prob but for someone in the OPs situation it would definitely not be my recommendation. I have however never see any one recommend open new acct during the actual mortgage process. Not saying it's impossible but seems unlikely.

[Anonymous]

A balance transfere to a new card to bring your utilization score down and then apply the 1K where the experts tell you too.

this would give you a new open and lower the utilization of the 6k to a number hat could move your score

[Anonymous]

Thank you for all the responses. I was just informed that UHEAA submitted a retraction to all three of the credit reporting agencies to correct an error in reporting 120 late payments on 3 of my husband's student loan accounts. With these late payments removed, about how much will his score increase?