folie

Need to improve score ASAP----to 700+?

14 posts in this topic

(Not sure if this is the right section to post in but anyways,)

According to Credit Karma:

668 transunion

675 equifax

FICO according to the Discover site:

672

 

Cards:

Chase                   $0              30%                     $2000 limit

Barclay                 $0              16%                     $10,000 limit

Fidelity                 $1,836        14%                     $5000 limit

Citi                       $1659         12%                    $4000 limit

Discover              $7,361         11%                  $7500 limit

Capital one          $1856          0%                  $2000 limit

Bank of Amer       $2150          0%                  $3000 limit

Amer Express       $0            unsure               $1000 limit

 

Personal loan(s):

Prosper             $19,268             $697 monthly installment

 

 

--Presently NET approx.  $2,775 per month income.

--Presently can apply approx.  $1,880.00 to the debt every month.

--Grossed 61K last year.

---Will be getting a raise to 75K in three weeks.    i'm not sure what the monthly NET will be and how much more i'll be able to apply towards the debt each month yet.

 

1) My goal (is this the right goal?) is to raise the credit score asap to about 700, apply for cards with a 0% on balance transfers and transfer as much of the debt as possible to 0%.

 

2) i would like a newer car, but this is not high priority.

 

So, if this is the right goal, then what should i do to raise the score asap to accomplish this?

 

Perhaps a better question is: what is the best thing to do given my situation?

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I'm assuming the $ values you have posted next to each chard are the balances owed, but I'm not sure what the % values are that you posted.  30, 16, 14, etc.  If my assumption on the $ values is correct, you are carrying a total of $14,862 balance across a total of $34,500  in credit limits which comes out to 43% utilization.  A full 30% of your FICO score is based on utilization and I'll bet it's the biggest drag on your score.  If you really can put $1,800/mo toward the balances, that's exactly what I would do to get your total balances down to around $1,000 (FICO also penalizes you for having too low utilization - seems 2-3% is ideal).

Another thing that will help is if you know of anyone with a high limit/low balance card that can add you as an authorized user, do that.  It doesn't always work as the CRAs have taken some steps to keep people from doing it just to raise scores, but if you share the same last name as the person and live at the same address, it almost always works.

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22 hours ago, folie said:

The %'s are the interest rates on each card.

Gotcha.  Doesn't change my advice much.  All I'd do differently is pay down the Discover card first.

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On 7/31/2017 at 12:44 PM, Harry Seaward said:

Gotcha.  Doesn't change my advice much.  All I'd do differently is pay down the Discover card first.

I usually agree with Harry Seaward (cause his sage advice is very, very good), however IMO, it might make better sense to use your $1880 available per month

to crush both the Fidelity & Cap One balances to Zero in 2 months. That way there would be no more minimum payment due on either of those two cards.

Then go after the Discover balance with all you've got to get your Utilization down, down, down!

As a side point, every time you open a new tradeline, you reduce your credit age. which has a Medium Impact on your credit score. I don't know your personal situation

however, if it were me, I'd hold off opening any new tradelines and go for paying down your utilization. This would raise your score faster, if that's your goal.

Edited by RockDaddy
I initially said Barclay - meant to say Cap One.
  • Like 1

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35 minutes ago, RockDaddy said:

IMO, it might make better sense to use your $1880 available per month to crush both the Fidelity & Barclay balances to Zero in 2 months.

This is a fine plan as well. It's more or less '6 of one,  1/2 dozen of the other' kind of situation. 

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19 hours ago, RockDaddy said:

I usually agree with Harry Seaward (cause his sage advice is very, very good), however IMO, it might make better sense to use your $1880 available per month

to crush both the Fidelity & Barclay balances to Zero in 2 months. That way there would be no more minimum payment due on either of those two cards.

Then go after the Discover balance with all you've got to get your Utilization down, down, down!

As a side point, every time you open a new tradeline, you reduce your credit age. which has a Medium Impact on your credit score. I don't know your personal situation

however, if it were me, I'd hold off opening any new tradelines and go for paying down your utilization. This would raise your score faster, if that's your goal.

That would be the plan if you wanted to pay everything down to $0, however if you quickly want to boost your score, I would work on taking large chunks off that Discover and BOA balance first.  Those are the 2 that are likely keeping the score down the most because they are near 100% usage.  If I wanted to get my score up as quick as I could, I would just work to reduce my usage to under 20%, regardless of what that dollar amount equals. (For instance, 20% usage on Discover would equal a balance remaining of $1500, however on Fidelity a 20% use would leave a $1,000 balance).  Think about it in terms of % rather than dollars if you want to drive the score up.

I completely agree that opening a new card will drive down your score.  Score-wise, it is probably better to just pay off these cards as they are rather than transferring to a new card.

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22 hours ago, fisthardcheese said:

That would be the plan if you wanted to pay everything down to $0, however if you quickly want to boost your score, I would work on taking large chunks off that Discover and BOA balance first.  Those are the 2 that are likely keeping the score down the most because they are near 100% usage.  If I wanted to get my score up as quick as I could, I would just work to reduce my usage to under 20%, regardless of what that dollar amount equals. (For instance, 20% usage on Discover would equal a balance remaining of $1500, however on Fidelity a 20% use would leave a $1,000 balance).  Think about it in terms of % rather than dollars if you want to drive the score up.

I completely agree that opening a new card will drive down your score.  Score-wise, it is probably better to just pay off these cards as they are rather than transferring to a new card.

I was under the impression that it was the *average* of ALL cards that keeps one's score down.

 

22 hours ago, fisthardcheese said:

I would work on taking large chunks off that Discover and BOA balance first.  Those are the 2 that are likely keeping the score down the most because they are near 100% usage. 

If you go this route, more pay the Discover and Capital One first.  Cap One usage is currently at 92.8%  whereas BOA is at  71.6%.

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10 hours ago, RockDaddy said:

I was under the impression that it was the *average* of ALL cards that keeps one's score down.

 

If you go this route, more pay the Discover and Capital One first.  Cap One usage is currently at 92.8%  whereas BOA is at  71.6%.

Yes, it is essentially the over-all average.  The quickest way to get the average down is to take chunks out of the highest ones to lower the average quicker.

You are right, my calculations by way of eyeballing it were off. Cap one is bigger usage than BOA and a better one to start with.

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Just a little update:

 

Around Feb, i applied for and got:

1) ABOC, Amligated bank of Chicago (mastercard)   $3,300 CL

2) PayPal (synchrony mastercard)   $5,000 CL

3) Wells Fargo $7,500 CL

 

Then April-ish, applied and got:

4) Bank of Amer $11,000 CL

5) Discover IT $5,500 CL

6) American Express Blue  $8300 CL

 

Combination of paydown/balance transfer of the Prosper loan balance down to $22.00  And it's down to $22 rather than pay in full because i have questions on that which may be more appropriate for another thread.......?

 

Got another raise to 95K last week.    Was previously netting approx $5,800 per month.  Not sure how much of this net could be, and was applied to debt?  Not sure how much the new net will be either yet?

 

Fico according to Discover (they use TransUnion) was 750 in June.  It's now 735.  i suspect due to the balance transfers of the Prosper Installment loan?

 

Citibank Fico (they use Equifax) is now 725.  Although back in April, it was 749

 

The bank of america balances are mainly balance transfers of the Prosper loan AND from the Barclay's which, itself was a balance transfer from other CC balances.

 

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TransUnion just went up to 764?    i'm only paying the minimums on the 0% cards, not because i can't afford to pay more, but i'm trying to figure out the best course of action.

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You're at 20% overall.  You'll probably get another 10 points if you get it under 10% and that's about as good as you're probably going to get.  From there the only things you can do to improve is increase the age, and get a variety of different accounts.  A car loan and mortgage are helpful if you don't already them.  But then by adding new accounts, you reduce the overall average age which will drop your score a few points, and it will take a couple of years to get those points back.

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Found out today, after the bill came that i got an automatic $1300 Credit limit increase to $6300 from $5000 on the paypal (synchrony).

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