Credit Score in San Jose>Question Details

Delation125, Home Buyer in San Jose, CA

Is it possible to increase my credit score to 750 if I am at 638? I have 2 credit card and student loan that I am working to pay off. Advice?

Asked by Delation125, San Jose, CA Mon Apr 30, 2012

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Claudia Muller Gravelle’s answer
According to the credit reporting agencies the models for credit scoring are fluid.
What was relevant five years ago is completely changed for today's market.
Student loans do not effect your credit as much as a credit cards.
Credit scores will recover nicely when your credit balances go under 50% of the maximum limit.
The interest rates on those credit cards is significantly greater than the student loans. Paying down those credit cards is going to give you a 'bigger bang for your buck'.
1 vote Thank Flag Link Wed Jul 17, 2013
Hello Delation,

I can't tell whether you could increase your credit from 638 to 750 for a couple of reasons.

First, paying off a student loan will not always help you with credit score because it's a positive thing to have a loan or mortgage in your credit record. It shows that you have stable credit.
Second, paying off your credit card will help your credit score but depending on how much you owed and what your credit limit are. For example, if your credit limit is $25,000 and you owed $2,500 then paying it off will increase your score but not going to be hundread points. On the other hand, if your credit limit is $4,000 and you owed $2,500 then I'm sure you can easily increase 50 to 100 points on your credit score. It affect two factors of your account calls "The ability to pay off your debts" and "Debt Ratio".

Thanks,
1 vote Thank Flag Link Thu Jun 21, 2012
Are they all current? Are there any late payments that are really 30 days late? Something must have changed that made your score drop that low? I'd check to see if all 3 bureaus are reporting that low, often there is a n error on one of bureaus that will drag them all down. Normally for a home loan the Lenders use the lowest of the middlescores of all borrowers and quote that as your score. Try to pay down the principal balances to at most 50% of your limit.
0 votes Thank Flag Link Mon Apr 30, 2012
Hey Daltion125,

Use only 25% of your credit limit. Going over that limit dings your credit score. Then always pay off on every month's due date.

Call me 408-316-0793 and I will give you simple rule to follow so that in 6 months time you can get your scores up to 800.
0 votes Thank Flag Link Mon Apr 30, 2012
Browse the Credit Rescue Now website for ways to improve your credit score. Here is the link: http://creditrescuenow.com/
Web Reference: http://creditrescuenow.com/
0 votes Thank Flag Link Mon Apr 30, 2012
Thank you, Delation:

Fred Yancy and Teri Velios gave you excellent answers.

I will add that most credit reports that I have seen do have errors on them. In most cases those errors are minor, but in some cases those errors can have a significant negative impact of 100 points or more.

My experience with credit reporting agencies and their willingness to voluntarily correct errors on credit reports has not been good.

I have found that often a letter from an Attorney to the credit reporting agencies, reminding them of their legal obligations to corect errors and the penalties that the credit reporting agencies face if they do not voluntarily correct errors is often essential as part of the effort to correct errors on your credit report.

Fortunately a letter fom an Attorney does not cost thousands of dollars, the cost is usually only several hundred dollars, but it can save you thoudands of dollars in interest costs on your mortgage. A letter to the credit reporting agencies from an Attorney on the Attorney's letterhead can work wonders if the credit reporting agencies are not willing to cooperate with you to correct errors on your credit report.

My experience with credit reporting agencies is that they are not very good at voluntarily cooperating with you to correct errors on your credit report, however when they receive a letter from your Attorney they become very cooperative with you to correct errors on your credit report.

Thank you,
Charles Butterfield MBA
Real Estate Broker/REALTOR
American Realty
Cell Phone: (408)509-6218
Fax: (408)509-6218
Email Address: charlesbutterfieldbkr@yahoo.com
DRE#00901872
0 votes Thank Flag Link Mon Apr 30, 2012
Send me an e-mail and we could meet for one hour free consulting. I might be able to get loan for you with your current credit score.
Web Reference: http://www.homenet123.com
0 votes Thank Flag Link Mon Apr 30, 2012
What You Can Do to Improve Your Credit Score

Credit scores, along with your overall income and debt, are big factors in determining whether you’ll qualify for a loan and what your loan terms will be. So, keep your credit score high by doing the following:
1.Check for and correct any errors in your credit report. Mistakes happen, and you could be paying for someone else’s poor financial management.

2.Pay down credit card bills. If possible, pay off the entire balance every month. Transferring credit card debt from one card to another could lower your score.

3.Don’t charge your credit cards to the maximum limit.

4.Wait 12 months after credit difficulties to apply for a mortgage. You’re penalized less for problems after a year.

5.Don’t order items for your new home on credit — such as appliances and furniture — until after the loan is approved. The amounts will add to your debt.

6.Don’t open new credit card accounts before applying for a mortgage. Too much available credit can lower your score.

7.Shop for mortgage rates all at once. Too many credit applications can lower your score, but multiple inquiries from the same type of lender are counted as one inquiry if submitted over a short period of time.

8.Avoid finance companies. Even if you pay the loan on time, the interest is high and it will probably be considered a sign of poor credit management.
0 votes Thank Flag Link Mon Apr 30, 2012
Delation125,

My recommended lender has a program where he can run scenarios for you. Give him a call.

Dave Setti
Turnkey Mortgage
408-377-8876
dave@turnkeyms.com

Have an amazing day!
Web Reference: http://www.terrivellios.com
0 votes Thank Flag Link Mon Apr 30, 2012
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