First - pay your credit card balances down so overall util is less than 8.9%. How many cards are reporting a balance? For best results, only allow one card to report a low balance of less than 8.9% of its limit and have all other cards report zero. This could easily boost your scores 10-15 points.
You gave the remaining balances of your loans, but what are the original loan amounts?
Do not apply for any new credit if you're within 6 months of applying for your equity loan.
You gave the remaining balances of your loans, but what are the original loan amounts?
Do not apply for any new credit if you're within 6 months of applying for your equity loan.
You dont need another credit card if you pay down your current balance on the one you have - and seeking new credit within 6 months of applying for a home equity is not recommended - especially if they will be basing approval off your mortgage scores which are very sensitive to new accounts. Also, a new card may drop your scores if it causes a decrease in your average age of accounts.
Pay down your credit card balance and only let it report something less than 8.9% of its limit. And, if you are able, you can pay off the personal loan since you have two other installments already. The loan is currently at 40% - so even if you just pay it down to less than 28.9% (less than $1445) you should get a score boost.
The combo of these two things should yield the boost you need - you're not far from your goal.
Pay down your credit card balance and only let it report something less than 8.9% of its limit. And, if you are able, you can pay off the personal loan since you have two other installments already. The loan is currently at 40% - so even if you just pay it down to less than 28.9% (less than $1445) you should get a score boost.
The combo of these two things should yield the boost you need - you're not far from your goal.
@Anonymous wrote:My scores are currently at 717/ 702/ 698 respectively. I need it to get over 720 for a home equity loan.
I have a car loan with an approx balance of $23,000
Another installment loan balance of $2,000
And student loan of approx $100,000
CC usuage of 20%
Should i pay off the installment loan of $2K, what about getting another credit card, would that help?
What is suggested?
Thanks
IMHO the best thing you can do for your mortgage scores is to get as many zero balances as you can among the credit cards. Optimum would be all cards plus one reporting a zero balance, with the one card reporting a small balance.
@Anonymous wrote:Thanks for your reply.
The original amounts are $45,000 for car loan and $5,000 for installment loan.
Also I only one credit card at the moment, should i still wait the 6 month?
Since you only have one card, you should try this test: in one month, let it report at zero. in the next month, let it report at 9% or less. Then see which score is better, and go with that method.