Need Help

[mcdavis8]

All,

I laid down the entire limit of my CC on a Recruitment company.

It dropped my score from 730 to 649 (the 649 is my mid fico). Looking back on this it was an unwise decision to destroy my credit. Anyone have any tips on how to fix this quickly? I was thinking of getting a personal loan and paying down my CC with it and then refinancing the personal loan? Or I have 6k in equity on my 2nd car. Any companies favorable to this low of a score?

Thanks in advance,

MD

[Revco]

Credit usage has a significant part in your overall scores. I'm not certain what you're referring to as a "recruitment" company, but I'm assuming you still have the option to pay off your CC. That would be your best bet...though I'd imagine you put it on your CC because you didn't have the cash.

A personal loan would benefit you for the reason that it would provide diversity to your profile, albeit probably make a small difference...and could negatively affect your score until the balance is paid down. You'd really just be transferring balances around...but it would make your revolving credit availability larger and benefit your score in that respect.

There's a few companies out there that do loans on vehicles...but I've heard they charge exhorbinant interest rates and have unfavorable terms.

Opening a new CC would also benefit as it would bring your usage down...but it may be difficult with a maxed out CC. A creditor might think you desparately need credit and decide to decline you. A company like Orchard Bank will be more favorable, but may not grant the CL you need to make a difference. Never know for sure, though.

You didn't mention anything about wanting new credit. If you don't plan on buying a house, getting a CC, or financing a car soon...just pay down the balance on your CC as you can and your score will go up.