- July 21, 2012 at 3:35 am #255439
My wife and I are*currently in need of raising my credit score to 680 or higher (with the ultimate goal of hitting 760 which is where it was 5 years ago). My current credit score from experian (only checked this agency) is 618-*been stuck at 618 for last 3 months. I am trying to get a particular new construction loan and they require a minimum 680 FICO. However, here’s my situation. My wife and I have been continuously employed by*the same companies for over 20 years and we have never once been late on any payments of any kind (mortgage, credit card, etc). The problem we are facing and the reason we are at a poor credit rating is this. We have 6 credit cards**with*3 of these*cards near the maximum*limit. I fully understand that to improve credit its best to pay these down to say 35%, but due to*the high balances this will take a few years at a minimum. card 1 is at 19K of a 20k limit, card 2 is 23k of a 26k limit and card 3 is 4.5k of 5k limit (card 4 is $0 with 3k limit,* card 5 is $0 with 3.5k limit, card 6 is $0 with 1k limit). The cards are no longer being used but these large balances will take awhile for me to bring down.*Also, there are 3 other things that have had negative effects on my credit*but*should improve now with time- they are *1) *9 credit*inquiries 11 months ago when*shopping an equity*line of credit and purchasing new car* 2)* a Chase credit card settlement I had almost 3 years ago (before I knew*doing something like this would hurt my credit) and 3) $80 delinquency collections for a medical bill that I recently paid and will be removed from my report Im told.* So these last 3 things will come off in time and have less impact but it is the high *credit* debt Im struggling with. My questions to anyone who has any insight in this and the possibility of getting my score to 680 are as follows:
Do I have any chance of reaching 680 with my debt ratio as it is?* Im currently using the debt snowball approach to pay these of but Im looking at 3 years to get them to $0
Is there anything I can do to move my score north fast? Such as transferring some of the debt to the 0 balance cards
How much are the items 1-3 above affecting my credit now? And is there a long lag in time before they will help move my score north.
Any insights would be greatly appreciated- thank you
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