Credit Score in Norfolk>Question Details

Scoobasteve, Home Buyer in Norfolk, VA

Credit is above 620, but utilization is high - appx 75%. What % utilization is recommended for a VA Loan?

Asked by Scoobasteve, Norfolk, VA Sun Nov 28, 2010

I am working on getting it down, by lowering credit owed, as well as working w/ lenders to increase available credit through CLI's. But wanted to see when it was recommended to apply for a loan.

Also what would be better, getting an installment under 10 months, or paying down utilization. Getting installment under 10 would allow for me to be approved for more, but don't want utilization to limit me from getting approved.

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Your revolving credit has the most impact on your credit scores. You will see the most improvements to your scores by paying down your credit cards. There are 2 thresholds where you will see improvements. You will see an improvement when you pay your balance down to 50% of what your credit limit is but you will see the biggest gains when you pay it down to 20% or below. You would think that paying it off to zero would be best but paying it down to below 20% but leaving a small balance is how you get the most improvement. I know that sounds weird but I have seen that on my own credit report.

For more information on how credit works go to: http://www.elliottoliva.com/youandyourcredit
0 votes Thank Flag Link Sun Dec 12, 2010
Your revolving credit has the most impact on your credit scores. You will see the most improvements to your scores by paying down your credit cards. There are 2 thresholds where you will see improvements. You will see an improvement when you pay your balance down to 50% of what your credit limit is but you will see the biggest gains when you pay it down to 20% or below. You would think that paying it off to zero would be best but paying it down to below 20% but leaving a small balance is how you get the most improvement. I know that sounds weird but I have seen that on my own credit report.

For more information on how credit works go to: http://www.elliottoliva.com/youandyourcredit
0 votes Thank Flag Link Sun Dec 12, 2010
It's above the 640 as well. I've brought it down to appx 60%, and will be in the low 40's, if not lower, by the turn of the year.

Is there a magic # I should shoot for w/ the utilization?

What I'd like to do is get my utilization down to that number, and then focus on getting my installment acct., car loan, under 10 months. Mainly because car payment is $467 a month, which eats up a decent amount of income. I've read that no utilization is actually bad.
0 votes Thank Flag Link Mon Dec 6, 2010
Bringing down debt ratio will raise your score and the magic # is now a 640 so go to work on your debt.
0 votes Thank Flag Link Mon Dec 6, 2010
May I suggest that you talk to a loan officer, our office has an excellent loan officer with over 30 years experience his vast repertoire of knowledge in the area of financing appears matchless . If you are interested in meeting him or telling him about your situation call him at 757-672-8120. His name is Bob Evans. If you need any help with your real estate needs don’t hesitate to give me a call at 757-672-1346.

Michael Harris
Long & Foster Realtors 2000-13 Colonial Ave. Norfolk, VA 23517 Office: 757-623-2500
Fax : 757-623-0711 Cell: 757-672-1346 Toll Free: 800-479-7355
email: michael.harris@longandfoster.com
My Website michaelharris.lnf.com
Licensed in Virginia
0 votes Thank Flag Link Mon Nov 29, 2010
That's an interesting question. For the best and latest information, go to Military.com and research VA. If you're a member of the Navy Federal CU, they will have the most up to date info on credit scores and available money. Every borrower is different just as every home is different. It appears you have been researching financing and that is an excellent move. Be certain you have pre-approval and do plan to use the VA benefit as soon as you locate the perfect home. You did not mention location, size, or price of home. Care to share?

Linda Hedgepeth, ABR, SFR, CSSS, Realtor, Broker
licensed in VA and NC
Wilkie Real Estate, Inc
Lake Gaston
757-635-7388 or 1-866-274-5154
or
0 votes Thank Flag Link Sun Nov 28, 2010
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