Best way to increase score with 0 debt?

Tips and Deals Forums Consumer Credit Best way to increase score with 0 debt?


This topic contains 3 replies, has 2 voices, and was last updated by  Anonymous 8 years, 3 months ago.

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  • #199879


    Well I just had the honor of paying off all of my debts a couple months ago. Got on myFico today and have a score of 741 EQ. My accounts are as follows:
    – CC $7000 Limit- $0 Bal
    – Health line of credit $9000 limit- $0 Bal
    – CC $1400 limit- $0 Bal
    – CC $3000 limit- $0 Bal
    – 2 Auto Loans Paid Off

    All payments were made on time and in full. Longest card is 4 years with an average of two years.
    My ultimate goal is to have at least a 760 by November 2011. (20 pt increase)
    Now my question is, of course my score jumped by paying off all of the debt, but how can I increase my score? I’m thinking to use my $7000 CC on occasion, keeping a low balance and PIF every month. Will this help to increase my score? This is the only thing I can think of besides time! Which I’m shooting for say 6-7 months.. Based on everyone’s experience here, will this be possible and a good plan to tackle this task?

  • #416266


    If you buy at 350 and sell at 350, you’ll get 350 minus the loan value at the time and other expenses. The loan value will probably have decreased by about 40k, but you may have to pay a real estate transfer tax and real estate commissions. That could eat up about 15 or 20k.

    However, I seriously doubt your home will only be worth what you paid in 10 years, unless it’s a mobile home. It might well be worth 500 by then.

  • #416267


    You need to go see a loan officer in your area.
    Real estate is a wise investment but you’ll have to take a chance that the market doesn’t dip when its time to sell down the road.

  • #416268


    I guess the question is, what have you lost NOW for having paid $ 1800/month for the past five years…..
    I guess that is my Realtor talk there, but seriously, your value WILL increase unless you buy in a super high risk area like New Orleans or on a fault line or something and the place falls into the earth.
    Although most of the market in the US is slower now, it is still better than getting NOTHING while renting. You have just made someone ELSE rich. You ARE paying HIS mortgage AND taxes and HE gets the tax benefit of home ownership that YOU DON’T GET NOW!!! Just for the tax benefit alone, I would own!!! Ask your mortgage broker to show you the tax benefit of home ownership!!!!

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