Credit Score in Wixom>Question Details

Kim, Home Buyer in Wixom, MI

Ive been trying to raise my credit score, payments are all on time, 25 yrs on job, how can I get it to at least 600, do I pay cc off, will that help

Asked by Kim, Wixom, MI Thu Sep 8, 2011

Ive had a new car no payments missed for over a yr. 25 yrs same job, filed bankruptcy 8yrs ago. will paying cc donw 50% help. I want out of this apt. LOL

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8
Kim,
First, you need to get a copy of your report from each of the 3 agencies, Trans Union, Equifax & Experian. Check for accuracies, if there are any errors dispute them in writing to each agency who reports it. You may need to provide proof that the information is wrong, but if you don't have it, dispute it anyway.
Paying down balances to 1/3 of their limit is a big help. Available credit increases scores. If you have a $6000 limit, pay it down to $2000 or below. Do this on all of your revolving accounts.
Do not close any accounts, this will lower your score, not increase it.
Meet with a few local lenders and ask if they assist in credit repair. I've done it for several clients when I did loans and we both benefited.
1 vote Thank Flag Link Thu Sep 8, 2011
If you have credit lines then don't use more then one third of your available credit at one time, pay on time, never miss a payment, and patiently wait. It's good to have a few open accounts as well.

Chris
0 votes Thank Flag Link Sat Jul 12, 2014
Hi Kim,

Start by getting a copy of your credit report. Dispute any inaccurate information. Sometimes it helps to write a good faith letter to you creditor. Explain to them what happened tell them how it will never happen again and that you are trying to build your credit up to buy a home. It doesn't work all the time but it only takes a few minutes to try. Last but not least pay your debt down but not off for some reason lenders like you carrying at least 10% debt. Hope this helps.
0 votes Thank Flag Link Sat Jul 12, 2014
Yes, paying down credit cards will definitely help, anytime you can reduce the BALANCE TO LIMIT RATIO on revolving accounts (credit cards, store cards, anything you can pay down and use again), which is called "utilization", you will help increase your scores. You can also help yourself out by asking for credit limit increases, since that also will reduce the utilization.

You should first read about what factors make up your credit score, which you can find at http://www.myfico.com/CreditEducation/WhatsInYourScore.aspx

A detailed list on other ways to improve your credit score can be found at http://www.myfico.com/crediteducation/improveyourscore.aspx
0 votes Thank Flag Link Fri Sep 9, 2011
Hi Kim,

You may consider checking your credit report.

If you find anything on it that is incorrect for any reason you should dispute it.

You may be surprised that some things that were supposed to be charge off may still be on your report.

Check statute of limitations as well for your state and make sure any negative items fall off when they are supposed to.

Best of luck

JoAnna Jensen
Web Reference: http://www.vololaw.com
0 votes Thank Flag Link Thu Sep 8, 2011
You should work with a loan officer, financial planner and credit counselor. The loan officer will show you where you need to be; the credit counselor will help you to figure out what you'd need to do to fix your credit; and the financial planner will help you design a plan to get where you need to be.
0 votes Thank Flag Link Thu Sep 8, 2011
Check with a loan officer.

From what you describe--and I'm not a lender so I'm not an expert--it sounds as if your credit score really could be higher. The one black mark is the bankruptcy 8 years ago. And your utilization of credit cards is a bit high. And maybe your debt-to-income ratio with the new car is affecting it. Still: 25 years on the same job, current on car payments. Presumably (you didn't say) current on other payments.

I'm sure paying your credit cards down would help. Not much you can do about the new car; I'm guessing you'll have payments on it for another 4-5 years. If there are any other black marks in your credit report, try to address them (open collections, for instance). And definitely consult with a loan officer who can go over your credit report with you and identify the items that are dragging your numbers down.

Hope that helps.
0 votes Thank Flag Link Thu Sep 8, 2011
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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0 votes Thank Flag Link Thu Sep 8, 2011
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