Jump to content

Need to raise credit score quickly for refi


Recommended Posts

Hello everyone,

I've been a member here for years and this site has helped me immensely!!  This is the first time I have posted a question because I wasn't able to find an answer in the search.  I am trying to refi my property but my credit scores are too low because of high balances on my credit cards.  Score is 603 and all payments have been made on time and never missed (need to raise my credit score close to 700 for refi).  Most of my cards are close to limit.  I just received a personal loan of $44,000 to pay down my cc's but now I'm wondering which route to take: Do I pay off a few CC's or do I pay down the balances of multiple credit cards?  I need to raise my credit score as quickly as possible and I'm not sure which way would help raise my credit scores the fastest?  I'm trying to do this in the next week or two and do a rapid score at the end of the month.  Thanks in advance for any advice!

$14,000 Limit - Balance $13,549

$8,300 - Balance $8170

$1400 - Balance $1583

$15,190 - Balance $14,883

$16,700 - Balance $16,810

$6000 - Balance $9613

$7126 - Balance $6740

$5000 - Balance $5000

$32,000 - Balance $31,720

Link to comment
Share on other sites


Kat nails it...your utilization is killing you and the $44K loan won't even get you under 50% across the board.  You can certain zero some of them out but you still have a half-dozen or so that will be close to the max (or over). 

 

What led to the cards getting maxed?  Has THAT situation been cured?  And just how badly are you being bent over on APR for the loan you have taken out?  I am guessing it was SoFi or Lending Club or something similar and that you may well be close to double-digit interest in addition to having lost money on the front-loaded fees... 

 

How much extra will you have with the new payment structure compared to what you have been paying to service the maxed cards?  In other words, with the service on the $44K, how much extra is going to exist to be tossed at the other balances? 

 

What is the situation contributing to the need for a refi?  Are you at least above water on that loan? 

Link to comment
Share on other sites

3 hours ago, nfinity8 said:

$14,000 Limit - Balance $13,549

$8,300 - Balance $8170

$1400 - Balance $1583

$15,190 - Balance $14,883

$16,700 - Balance $16,810

$6000 - Balance $9613

$7126 - Balance $6740

$5000 - Balance $5000

$32,000 - Balance $31,720

Out of the nine tradelines you're discussing here, three are over the limit, one of which is WAY over the limit, and one is right at the limit.

 

I've seen people with better tradelines throw in the towel and declare BK. This isn't getting fixed in a couple weeks.

Link to comment
Share on other sites

  • 10 months later...

Hi,

Sorry for the late response.  Thanks for the input.  I actually went a different route and refi last Aug.  This was a refi of a Commercial property that had way more equity then I realized until we got our appraisal.  I was able to expand and now everything is going great!  I am finally able to start paying down my CC's with the positive cash flow and should have things back to normal or better by next fall.  Thanks again for your input.  This board has been a great source of information throughout the years.  All the best!

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

  • Similar Content

    • By Lynnlee22
      Hi all. Hope everyone is gearing up for a good new year. This year I'm really hoping to dig myself out of the hole I'm in. For a little bit of background - I have chronic kidney disease and had to make the decision to leave my job in public school administration about five years ago. For the first three years, I did very well working from home as a virtual tutor and educational transcriptionist. When COVID hit, things were initially okay because students were learning from home, but soon families were having to cut all nonessential expenses which often meant me. My income was reduced by about 75% in 2020. I racked up quite a bit of credit card debt to cover living expenses with the expectation that things would improve quickly and I would be able to pay off the debt. As we now know, that simply hasn't happened. I owe about 15K across a number of different cards and a personal loan. As of now, everything is current, but I cannot continue at this rate.
       
      I want to pay my creditors, but I cannot afford the current minimums. I'm considering contacting the credit card companies individually and asking about hardship plans, but I know they are often unwilling to help until you are behind.  My creditors are: Capital One, Discover, Dell, Ollo, Opportun, Credit One, Aspire, Merrick Bank, Target, PayPal, and Upstart loan. 
       
      I live in South Carolina. The debt collection laws here are rather consumer friendly. I do not have the any property other than about $45,000 equity in my primary residence. I'm really trying to determine what the best course of action is. I know not paying the cards in hopes of qualifying for hardship programs involves a risk of suit, but even if there was a suit, I don't believe there's much they could take. 
       
      I also know there's the option of debt consolidation, but I know that would be yet another bill that I don't need and I might be able to accomplish the same thing myself. Does anyone have any experience with this process? What is your opinion/advice? Thanks so much.
    • By credithoarder
      Hi All,
       
      I have searched this board to identify a singular thread that nails down the personal experience of members who follow the AZERO but ONE credit card utilization balance strategy  Unfortunately, I have not found any expansive explanation behind who came up with this strategy, how to best implement it, and its success rate among credit card holders.
       
      To my understanding, the gist of the AZERO but ONE strategy is to zero out the balance on all credit cards in one's profile, but carry a balance on one. I do hope I have this right, because I am trying to take put it into practice (along with great payment history and credit limits) to reach the 800+ club. 
       
      What I am not sure about are the following:
       
      Does the balance of the one card have a carry a statement balance (will incur an interest for non-zero APR card)? Does the balance of the one card have to carry a current card balance (money spent to-date) at the end of the closing date? Does the balance of the one card have to be < 30 %?  
      I utilize the spreadsheet from the following site to play around with the card balances - Card Utilization Calculator. Ideally, I like to keep my card utilization between 7%-10% max.  However, when I average out all my cards in the calculator, the total utilization rate naturally comes to less than %1.  At that point, I am not sure if having < 1% is considered to be so negligible to the Fico scoring system that it makes it appear that I really don't utilize my cards at all. 
       
      As an experiment, I plan on carrying a 30% current balance on one of my cards for one billing cycle, out of 7 cards, which will bring my total utilization ratio to about 7%. 
       
      That said, does anyone have any experience or insight to this approach they are willing to share?
    • By Menta33
      I've got Citi AA Miles card from 2019 still with same credit limit I opened with.  Denied again for CLI, reason given was:
       
       
      However, I wonder if that is the full story since they have BK loss with me that is off my credit reports now?  Are they obligated to cite that in their reasons if part of their decision making process?
       
      My inquiries on Equifax they referred to:
       
      Feb 17, 2021 PENTAGON FCU (Denied CLI, max exposure) Feb 17, 2021 DIGITAL FEDERAL CREDIT UN (Denied card) Dec 29, 2020 CORELOGIC CREDCO CORELOGIC for BACHOMELOANSECOMMDMA (Mortgage approved) Apr 20, 2020 CREDCO/QUICKEN CREDCO/QUICKEN for QUICKEN LOANS INC Mar 07, 2020 PENTAGON FCU (Approved CLI) Mar 07, 2020 DIGITAL FEDERAL CREDIT UN (Denied card) Feb 24, 2020 CITIBANK NA CITIBANK NA (Prior Citi CLI that was denied)  
      Experian FICO: 827 (From Wells Fargo Bank)
      TransUnion FICO: 824 (From Barclays Bank)
      Equifax FICO: 770 (From DCU older version of score)
       
      Thoughts?
    • By Missash43
      I missed a payment for a federal student loan and about a week and a half ago, it hit 7 years. Isn't it supposed to just fall off? When will that actually happen? Do I have to do something to make it fall off?
       
      Thanks for your help!
       
    • By racer7949
      I recently received a "score" in a letter from a financial institution. The letter revealed that the data was Equifax, but made no mention of the model, just that "Scores range from a low of 501 to a high of 990." That's an awfully high top end, could this be Vantage 4?
       
      Of the five adverse factors listed, three were of the dunning "How dare you use your credit cards!" type, including the fact that I have too many of them. Then I got "No real estate accounts with a valid credit amount." No I don't have a mortgage; I busted my hump for 35 years to own my home free and clear and now it's a negative on my credit score. Lovely.
       
      Then came the dreaded, infamous, Too Many Inquiries! factor; but look how they have juiced it up to sound less negative: "Number of inquiries was also a factor, but the effect was not significant."
       
      BTW, I had one 14 month old inquiry.



  • Member Statistics

    • Total Members
      183,312
    • Most Online
      2,046

    Newest Member
    dukeskenny
    Joined
×
×
  • Create New...

Important Information

Guidelines