DD is getting ready to go to college now we don't need to take out a parent plus loan for this year, but I was thinking about possibly taking one for about 2K and then immediately paying it down to below 8.9% for the score boost. Any idea what kind of boost that might generate? Another option to raise score could be to go as an AU on DW visa. That would then become my oldest open account at 11 years if I got all the history.
Opinions?
State Farm Auto Loan approximately 50% Util
Discover 8% - Carrying Balance at 0% through 4/19
Amex BCE 1% - Carrying Balance at 0% will be increasing to about 8% util as I pay some med bills 0% goes through 5/19
Cap One QS 1% - PIF every month after statement cut 1% is avg usage.
Citi DC - PIF before statement cut each month
Amazon Prime Rewards - PIF before statement cut each month.
Lowes (AU) - currently 0 balance/will be doing a 6 month 0% soon putting util at 1-2%
Baddies
2-120 day lates that shold drop at about a month before the Plus loan would happen.
1 30 day late from 9/12
1 30 or 60 depending upon report from 2/14, - this late payment is currently being disputed as I was not late in 2/14.
@Anonymous wrote:You already have a big open loan (auto loan) so getting another smaller loan (even if you pay it down) won't help you. The strategy of adding a loan and then paying it down immediately is intended for people with no open loans.
Your CC balances are already very low and you have several cards so you are set there.
We can't comment on the AU strategy because we don't know the age of your current oldest account. If your oldest account is 2 years (say) then going to 11 years would help some. If your oldest is a good bit older (e.g. 6 years) then the benefit would be even less.
What would be wrong with just waiting for your severe derogs to fall off? Those are the things that are hurting your score. When they fall off you will be left with one Day 30 late from almost six years ago.
Thanks CGID. You confirmed what I was really thinking, but wanted someone more experienced than me to say it. The severe derogs will be gone soon, and hopefully the minor derogs that are most recent will dissapear with my dispute leaving with with only a single 30 day late that is 6 yrs old.
I am just at the point right now where I am getting impatient to get my scores over 700. My Tu just hit 700, and the other two are very close.
@MakingProgress wrote:DD is getting ready to go to college now we don't need to take out a parent plus loan for this year, but I was thinking about possibly taking one for about 2K and then immediately paying it down to below 8.9% for the score boost. Any idea what kind of boost that might generate? Another option to raise score could be to go as an AU on DW visa. That would then become my oldest open account at 11 years if I got all the history.
Opinions?
State Farm Auto Loan approximately 50% Util
Discover 8% - Carrying Balance at 0% through 4/19
Amex BCE 1% - Carrying Balance at 0% will be increasing to about 8% util as I pay some med bills 0% goes through 5/19
Cap One QS 1% - PIF every month after statement cut 1% is avg usage.
Citi DC - PIF before statement cut each month
Amazon Prime Rewards - PIF before statement cut each month.
Lowes (AU) - currently 0 balance/will be doing a 6 month 0% soon putting util at 1-2%
Baddies
2-120 day lates that shold drop at about a month before the Plus loan would happen.
1 30 day late from 9/12
1 30 or 60 depending upon report from 2/14, - this late payment is currently being disputed as I was not late in 2/14.
Nope, that will do absolutely nothing positive for your score. In fact it will cost you.
1. It costs you an inquiry, a lowered age of newest account, and a lowered average age of accounts.
2. It gives you nothing because you already have an open installment loan.
So save your borrowing power for when you need it.
@MakingProgress wrote:
@Anonymous wrote:You already have a big open loan (auto loan) so getting another smaller loan (even if you pay it down) won't help you. The strategy of adding a loan and then paying it down immediately is intended for people with no open loans.
Your CC balances are already very low and you have several cards so you are set there.
We can't comment on the AU strategy because we don't know the age of your current oldest account. If your oldest account is 2 years (say) then going to 11 years would help some. If your oldest is a good bit older (e.g. 6 years) then the benefit would be even less.
What would be wrong with just waiting for your severe derogs to fall off? Those are the things that are hurting your score. When they fall off you will be left with one Day 30 late from almost six years ago.
Thanks CGID. You confirmed what I was really thinking, but wanted someone more experienced than me to say it. The severe derogs will be gone soon, and hopefully the minor derogs that are most recent will dissapear with my dispute leaving with with only a single 30 day late that is 6 yrs old.
I am just at the point right now where I am getting impatient to get my scores over 700. My Tu just hit 700, and the other two are very close.
The passage of time, without new inquiries or accounts, is the best medicine for your scores.
Thanks for the responses. I will stay in the garden, and reap what I sow.