- November 7, 2011 at 3:49 pm #63288
Ok so I am wanting to try and buy a house this summer so I am in the process of fixing my credit score. Let me go into some details about it. I check my credit on a regular basis because I am enrolled in the program.
I currently have a credit score of 552
My total debt on my credit score is only 22000 and thats between credit cards, students loans, and 2 car loans
Have been current on everything for 2 years and today I just paid 5 credit cards to be under 25% of the credit limit.
Both car loans have been open over a year and have NEVER been late.
Student loans have been open for 3-5 years and in the very beginning I was not making payments so that hurt my credit but pretty sure that parts over since they have all been current for 2 years.
Credit card payments have never been late.
My question is now that I have paid my credit cards to be under 25% of their limits, one more to go which I’m paying next month, how many points can I expect my credit score to go up and what more can I do to increase my score by this summer? I would love to shoot for over 700 range.
I am self employed running my own daycare and make 50,000/yr.
Want to get a good interest rate and will have 20% down when we buy in 6 months!
I am almost 24 years old so I have only had credit for 6 years and when I was 19 my score was 697 but I was stupid with it. The lowest it has gotten is 425 and now it is back to 552. I am pretty sure that keeping all my credit cards near the credit limit keeps my credit score in the 500’s.November 7, 2011 at 3:50 pm #273962
You’re doing everything right but I think it may take awhile to hit 700 – I have a feeling you may be a little overextended? What is your debt to income ratio? Is this 22,000 like 20 or 30% of your gross annual income?
Keep paying down your debt and your score will improve but it may take some time. Good luck.November 7, 2011 at 4:28 pm #273963
You need over 600 for a bank to take you seriously. Revolving credit debt is killing you. Some think it’s ‘neat’ and ‘proud’ to have a bunch of cc’s. Get rid of all but one cc. What you pay per month in debt, over what you make per month, is important to a bank. You should be spending under 1/4 of your monthly income on debt.
Getting your folks to co-sign your mortgage would be a great help – along with the points above – to get you closer to 700.November 7, 2011 at 4:43 pm #273964
Factors used to create your credit score, in order of importance (information marked with a * is obtained from an application, not considered in a credit bureau score):
1.Major derogatory items on your report (bankruptcy, collections, foreclosure, slowpays)
2.Time at present job
3.Occupation (Professionals are given heavy weight)*
4.Time at present address
5.Ratio of balances to available credit lines (the lower the better)
6.Are you a homeowner? (if you are, this is heavily weighted)*
7.Number of recent inquiries
8.Age (50+ is the best)
9.Number of credit lines on your report
10.Years you have had a credit in the credit bureau database
I suggest you read the following article from an excellent, free website that can provide all the information you require to make improvements to your score:
and here is an article on how to increase your credit score quickly, in 30 days or less:
Good Luck!November 7, 2011 at 5:03 pm #273965
Go to http://www.raise-credit-score.net for information on raising credit score in the privacy of your own home. Innovative software that gives you 24/7 access to your credit report, tells you what bills to pay and how much, will also tell you how much your credit score will increase if you follow the suggested plan and automatically generate dispute letters based upon errors in your credit report. You can play what if scenarios in reducing debt and see the impact to your credit score.November 7, 2011 at 5:10 pm #273966
It is very unlikely that you will be able to raise your score to the 700 mark by next summer. It takes a long time to build credit. There isn’t any magic formula to instantly bring your score up over 100 points.
For starters, pay off all the credit cards. Paying them below the 30% mark will give your score a boost, maybe 50 points. But carrying balances does not improve your score. It just cost you interest and adds to your debt to income ratio — something mortgage companies look at very carefully.
Your car loans will have a larger positive impact on your score after 18 months of on time payments.
But your real problem may be your source of your credit score. Those third party monitoring services are a complete waste of money and most use a Fakko score. Your actual FICO score (the one creditors use) may be lower.
Equifax uses FICO. You can also get FICO scores for Equifax and TransUnion at MyFico.com. Consumers cannot get FICO scores for Experian anymore. Experian and TransUnion sites use Vantage scores (different formula and different scale).
You may have to put off that home purchase for another year or so. You may as well start saving up for a nice big downpayment and closing costs. You’re gonna need a 20% down.November 7, 2011 at 5:16 pm #273967
Сredit repair workеd fine to fix my credit. They disputed and removed lots of bad items from my credit report. I used this service – credit-report-free.totalh.com
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