Credit repair...any suggestions? (1 Viewer)

Nick26

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Me and my wife are trying to purchase our first home. I need to boost my credit by 20 points the lender advised. They told me if I pay off two of my revolving credit accounts that are close to the limits will boost it the 20 points I need. I was always told if you pay them down to a zero balance it hurts more than helps. Does anyone have any ideas or advise to help get those 20 points? It would be greatly appreciated!
 

BoatsNBeer

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Paying down a balance NEVER hurts. That is a myth. The more of your current credit you have "available" the better. In other words, it's is best to carry no balances.

Another myth is that you have to use your credit cards and the like for it to help you credit. This is false as well. The best thing where the credit agencies are concerned is to have a zero balance. They don't know and don't care if and when you have ever used it. A credit score is just a "snap shot" of your credit facilities, with certain historical factors like if you were ever late with payments.

In short, yes, pay off the credit cards.
 

TheBigEasy99

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Paying off and closing a revolving credit account can hurt you. That may be where the confusion comes in. As B&B said, paying it to a zero balance should have nothing but a positive effect on your credit.
 

Shockmo

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Don't use it ...cash for everything. Then they can't track you and no tin foil hat.
 

BoatsNBeer

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Paying off and closing a revolving credit account can hurt you. That may be where the confusion comes in. As B&B said, paying it to a zero balance should have nothing but a positive effect on your credit.


That is true. I didn't think of that.
 

FullMonte

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Paying off and closing a revolving credit account can hurt you. That may be where the confusion comes in. As B&B said, paying it to a zero balance should have nothing but a positive effect on your credit.

Exactly. A huge part of your score is based on the ratio of your available credit to your balances...

Having four maxed out $2,000 cards, and one card with a $2,000 limit and a $1,000 balance gives you 90% usage ($9,000 out of $10,000 available). Paying off the $1,000 card drops your usage to 80%. Paying it off and closing it raises it to 100%.
 

4saintspirit

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Dont know the ins and outs of your credit history so its tough to give a lot of advice -- but its true ::: Pay down the balances -- but it sometimes takes a month before that is reflected in your credit score (maybe less - it all depends on when the payment is updated on the reports) -- to add to the confusion -- lately some cards lower the availble credit when you get to 0 -- but its always good not to have a balance.

You may want to read about the stuff on this link

http://www.myfico.com (its run by Fair Issaac which developed FICO scores) -- there is a section on the bottom (past where they try to get you to buy stuff) that has a lot of good edicational information on them

http://www.myfico.com/CreditEducation/WhatsInYourScore.aspx etc.
 

superchuck500

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www.creditboards.com

This site is well worth getting familiar with. It's a user-based, forum-based site like SR, and very well moderated. Everyone who deals with credit should understand their rights and obligations, how credit scores work, and the rights and obligations of creditors and debt collectors. There's a newbies section that I highly recommend.

But the posts are all accurate: you want to have zero balance if you can, but you want the available credit to be open, so don't pay off an account and then close it. The only time you want to close accounts is if it presents risk to you (i.e. risk of account getting compromised, risk of too many accounts to manage, etc).
 

superchuck500

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BUT - beware - paying off a revolving account with the creditor is one thing. Paying off a debt collector is another thing. You shouldn't just run and pay off a collection, there are things you need to do best protect yourself.
 
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Nick26

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Thanks so much for all the info! It's not as confusing to me anymore lol. That's why I love this site! Everyone is willing to help! And not to mention great place for our Saints news! I think we got it figured out. The banks wanted a zero balance on our revolving credit and then the company fax them saying it's at a zero balance. So hopefully everything will work and we will be "homeowners" soon!
 

superchuck500

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Thanks so much for all the info! It's not as confusing to me anymore lol. That's why I love this site! Everyone is willing to help! And not to mention great place for our Saints news! I think we got it figured out. The banks wanted a zero balance on our revolving credit and then the company fax them saying it's at a zero balance. So hopefully everything will work and we will be "homeowners" soon!

Sounds like you got it worked out. Congrats!!
 

saintmdterps

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Thanks so much for all the info! It's not as confusing to me anymore lol. That's why I love this site! Everyone is willing to help! And not to mention great place for our Saints news! I think we got it figured out. The banks wanted a zero balance on our revolving credit and then the company fax them saying it's at a zero balance. So hopefully everything will work and we will be "homeowners" soon!
Good luck to you, my friend. I have one card with about 7k on it thanks to some recent home improvements at my old house. The balance is no problem according to the loan officer as the card has a 15K limit. I have another card with a 10K limit that I've never used.

I'm buying a house as well thanks to my ummm, recent "domestic adjustment."
5 1/4% for 30-year fixed. Closing Nov. 6. :beerchug: afterward
 

superchuck500

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5 1/4% for 30-year fixed. Closing Nov. 6. :beerchug: afterward

Awesome! That's a great rate, I just locked in our loan at 5 1/4% as well. Our closing is Dec. 15.

We'll have to do a celebratory chug at the Redskins/Saints tailgate.
 

seguinfan

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Go to the three major companys Trans Union ect, and dispute everything. Most companys do not have access to see what is getting disputed and after 30 most if not all will get taken off. Then give it a couple of months and your credit score will shoot up. Trans Union is a lot easier to use than the other two, but it will help a ton.
 

superchuck500

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Go to the three major companys Trans Union ect, and dispute everything. Most companys do not have access to see what is getting disputed and after 30 most if not all will get taken off. Then give it a couple of months and your credit score will shoot up. Trans Union is a lot easier to use than the other two, but it will help a ton.

Actually, that advice isn't good for the OP. If you're trying to close on a loan in the near term (as he is doing), some underwriters will be very wary if accounts start showing up in dispute status.

Yes, there are valuable ways to dispute items on your credit report. But you should learn how and when to do it.
 
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Nick26

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Well just got back from the mortgage place we are pre-approved for a FHA loan 30 year fixed with a 5.50% interest rate! Again thank you guys so much for all the info.
 

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