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What to do?

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jjr9106
New Member

What to do?

Hey Everybody!

 

Getting ready to refi, and I would like to bring my score up some first...

 

Debt

 

Revolving

CCard 1 - 8k balance on 16K max

Second Mortgage - 40K balance on 42K max

 

Installment

Car 1 - 14k left

First Mortgage 140K left

 

If you were going to throw 30K cash at that stack of debt to try to bump my score the most, where would you apply it?

 

Thanks for the help,

JR

 

Message 1 of 10
9 REPLIES 9
pizzadude
Credit Mentor

Re: What to do?


@jjr9106 wrote:

Hey Everybody!

 

Getting ready to refi, and I would like to bring my score up some first...

 

Debt

 

Revolving

CCard 1 - 8k balance on 16K max

Second Mortgage - 40K balance on 42K max

 

Installment

Car 1 - 14k left

First Mortgage 140K left

 

If you were going to throw 30K cash at that stack of debt to try to bump my score the most, where would you apply it?

 

Thanks for the help,

JR

 


If you are trying to bump your FICO score you should focus on your revolving debt.    FICO weighs revolving debt much more significantly than installment debt.  

 

Definately pay down the credit card.    Double check your second mortage ~ are you certain that it shows as a revolving account on your credit reports ?   Usually lines of credit over 25K are scored as installment loans I believe.....If it is really a revolving account then I would recommend paying it down as much as possible in addition to the credit card.

 

Don't worry about your first mortgage or car loan.

 

 

 

 

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 2 of 10
jjr9106
New Member

Re: What to do?

Yeah, second shows up as revolving on experian and equifax, but not on transunion...  strange.  I thought, like you did, that large 2nd mortgage balances wouldn't show up as revolving...

 

 

Message 3 of 10
jjr9106
New Member

Re: What to do?

The more I read, I think that's what's hurting me.  I have scores around 660, with no missed payments, nothing bad.  But because that "2nd" is being treated as revolving, that 40K is killing me...  Wonder if I can refi that 2nd into a fixed? Not sure what to do with it other than hammer down and get it paid off.

 

Message 4 of 10
pizzadude
Credit Mentor

Re: What to do?


@jjr9106 wrote:

The more I read, I think that's what's hurting me.  I have scores around 660, with no missed payments, nothing bad.  But because that "2nd" is being treated as revolving, that 40K is killing me...  Wonder if I can refi that 2nd into a fixed? Not sure what to do with it other than hammer down and get it paid off.

 


Can I ask where you obtained your scores ?  Are they FICO scores ?

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 5 of 10
jjr9106
New Member

Re: What to do?

I pulled all three from Experian... and they're all right around 670.  

Message 6 of 10
Repo-ed
Senior Contributor

Re: What to do?


@jjr9106 wrote:

I pulled all three from Experian... and they're all right around 670.  


 

What you pulled are FAKO scores. Not REAL FICO scores.  You really need to pull your TU and EQ scores from here, and if you have a Amex card, you can apply for a card you know you won't be approved for, to obtain your  REAL EX FICO score.

 

Your scores could actually be much higher/lower than what experian FAKO scores are showing you.

5/2012: 560 credit scores across the board
12/2014: 750+
3/2017: 780+
11/2019: 833
2/2023: Experian via Chase United Explorer CC pull - 891
Message 7 of 10
Anonymous
Not applicable

Re: What to do?

Ah, thanks.  I did that and my score is a 698.  Much better.  Thanks so much.

Message 8 of 10
Quips
Regular Contributor

Re: What to do?


@jjr9106 wrote:

Hey Everybody!

 

Getting ready to refi, and I would like to bring my score up some first...

 

Debt

 

Revolving

CCard 1 - 8k balance on 16K max

Second Mortgage - 40K balance on 42K max

 

Installment

Car 1 - 14k left

First Mortgage 140K left

 

If you were going to throw 30K cash at that stack of debt to try to bump my score the most, where would you apply it?

 

Thanks for the help,

JR

 


If you have $30K to apply - I would pay off the CC and put the rest on the 2nd. You will improve your FICO since your total Utilization will go from 83% to 31% and should give you a big score increase. Also, by only having 1 of 2 revolving tradelines with a balance you should also see a jump. After that, you will see score increases when UTI goes below 30% and then under 10%

Good luck

 

FICO: EQ 769, TU 762 , EX ???

Message 9 of 10
apandabear
Regular Contributor

Re: What to do?


@Quips wrote:

If you have $30K to apply - I would pay off the CC and put the rest on the 2nd. You will improve your FICO since your total Utilization will go from 83% to 31% and should give you a big score increase. Also, by only having 1 of 2 revolving tradelines with a balance you should also see a jump. After that, you will see score increases when UTI goes below 30% and then under 10%

Good luck

 


+1.

 

Then try not to carry a balance on the CC until you have that 2nd mortgage paid off. 

 

Best of luck!!

2009-10 - C/Os
2011 - Debts paid, no open credit
2012 - Rebuilding started, secured cards opened, SL rehabbed - EQ myFICO 636
2014 - 10k Discover, 3.5k Freedom, AmEx Green, SL, Auto Loan - EQ myFICO 695
Message 10 of 10
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