Alerts are a great way for you to stay up-to-date on things you care about. We will email you a list of the new items that match your criteria at a time of your choosing.
IMO you would probably see a rise in your scores if you paid down the card under 75-80% of the limit. So if you have a $10,000 limit, you would want to have the balance under $7500. I would probably work on getting a downpayment together and some reserves (money left over after closing).
What are you planning on spending? How much are you putting down?
Lender rating
Since January 2009
What are the limits on the respective cards? My advice would be to call both card companies today and request a limit increase on both, sometimes it works, sometimes not. Then proceed to spread the CC debt between the two evenly. Is preferable to keep your balances under 40%, but at least getting that one down from being close to the limit will benefit your score.
bdcjkc-
My friend works for Credit Plus which is a credit company that pulls scores from all three credit repositories (Trans U, Equifax and Exp) She told me about their Credit Analyzer program they have, costs about $32.00 and it includes your current credit report as well, in there you can actually see how much you have to payoff and how many points your credit will go up. It also gives you the time that it will take for your credit to go up, now I have used that my self and recommended to other people, is better than subscribing to those companies that charge you $59.00 or more per month to manage and raise your scores, now don't get me wrong those companies most of the times do work in getting your scores higher, but for you it does not seem like you are in bad shape, you just need a little guidance and I think that will be well worth. Also most companies like Factual Data, Credco, CBC etc, have programs very similar to the one I mentioned. In my opinion, I would split the balance in both credit cards and keep the balances under 40% you get faster results and higher points for keeping your balances under 40%, now this is based on my own experience and also what I have seen on most of my clients.
Here's what you do to build your credit score. Paydown some of the debt. Don't split the debt on two cards. Anytime you transfer, open or close accounts it shows up on credit history. Pay the debt down, pay more than the current month balance for a few months and make sure your payments are never late.
Great advice, thanks! We will concentrate on paying it down. We arleady pay more than double over the mininum and are always on time. It is a 10k card, but is also our only debt. We are planning on spending 600 - 620K, as of this moment, we have 5k to put down but that figure grows each month. We sold a home in Ohio a couple of years ago and barely broke even so have had to rebuild our cash flow. We now rent in NJ, where we are hoping to buy.
Lender rating
Since January 2009
"Anytime you transfer"
nope
Credit card balances need to be no higher than 49% of the credit limit. If you move the balance to be under 49% then you would see an improvement in scores. It doesn't make sense, but having a card with something on it <49% is better than having a card with zero on it.
Try these articles... they should help you....
Please be avare that a morrgage institued will look at the "whole" pickture. If you pay your credit cards one time and it is the "only" debt you have then it would not hurt you to just pay what you have to, just 10 or 20 dollars more then minimun, dont use the card again. Just pay on it. the extra money your spending on the card place it in a savings account. Thae card that is paid of DO NOT close. DO NOT ASK FOR A CREDIT INCREASE. Most lending instiueds are looking at the after photo as well as the current. If you have two 10K credit cards, one is paid and one is about 5K owed, you now have 15K usable credit. now you ask for an increase, you now will get 20K on the paid card, and 15K on the open card, yes your still paying it but now you have a 35K usable credit, what if you use all of that credit? you will say "no you won't" however the underwriter doe's not get to talk to you, and you lender can not garantee in writing that you wont. On the other hand if you close the paid card, you have just given away all of you credit history. Better thing to do, leave well enough alone, pay you current card only with a smal amount more, take the other part into the bank and save it. ($10 extra on the card $ 10 in the savings) lenders like to see that you have enought for the mortgage in reserve, at least one month of mortgage, the more the better.
Lender rating
Since January 2009
Wow, thanks.
Lender rating
Since January 2009
That was painful...
I though the Terms of Use Agreement mandated English and using actual grammar?
Must be my mistake........
BTW, I have one question for Luftpost: what exactly is a "lending instiueds" ??
DP
Lender rating
Since January 2009
I feel that I just went crosseyed.
Hey, waking up with a cup of vodka just doesn't work for some...
Lender rating
Since November 2009
Luft, are you a lender or a R/E agent? BD, I would probably pass over Lufts post all togethor.
Lender rating
Since January 2009
Well it is Friday after all Jenn...Some start earlier than others.
Lender rating
Since January 2009
It is all about time zones. They are drinking somewhere in the world
Lender rating
Since November 2009
<muscial notes> it's five o clock somewhere <musical notes>
good morning.....if you transferred some cash from the card that's paid off to the card that is maxed, yes, it would help your credit score..a balance that is 70% or below the credit limit should be your target.......however.....the cost per thousand could be higher on the old card than the one carrying the higher balance....also...the rate could go up on your paid off card since the funds that transfer could be considered a cash advance as opposed to a purchase....if you are considering fha..why wait to buy?........your credit scores are fine....prices on homes are way down, and sellers are motivated to sell....i hope that helps....best regards......
Lender rating
MoneyToLend: She told me about their Credit Analyzer program they have, costs about $32.00 and it includes your current credit report as well, in there you can actually see how much you have to payoff and how many points your credit will go up.
It's a really neat tool, I've used it on several occasions, and it's worth every penny!
Featured Rates are based on state rates for 5/1 ARM loans and are valid for the date shown, but they may change without notice. They are for consumers with a credit rating of 720 or higher and a 20% or higher down payment. Rate, terms, pre-paid finance charges, and APR may vary based on factors such as creditworthiness of the applicant(s), self employment status of the applicant(s), condo or townhouse structure, loan amount, and geographic location of the property.
If a lender does not offer a national rate, a state rate may be shown next to the lender's name. For example, 'Bank name (CA)'.
... and, it's free and anonymous
Zillow® Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy
Credit Score Improvement Question
bdcjkc
Contributions: 20
View full profile
My husband and I are hoping to buy within the next six months. Our credit scores are currently in the mid (me) to high (him) sixes. Our question is - we have two major credit cards, one is completely paid off and the other is almost at it's limit. Would taking half the balance from the one card and transferring it to the card with no balance have a positive affect on our score, or should we keep it at zero and concentrate on lowering the balance on the higher card (which of course will take some time)?
If you find this content is in violation of our Good Neighbor Policy, please let us know and we will review it.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.