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Answers (15)
- Clay Branch, "Georgia Loans"
- Contributions:7786
Paying the credit cards down will absolutely help to increase the score, but increasing it 42 points just off paying down some cards is a bit of a stretch.
If someone had 1 credit card with a balance near the credit limit and the balance is paid down to 30% or less, you should see at least 42 points, probably more. If they have 1 or 2 other cards that are also near the credit limit or maxed out and those balances were not paid down, then those will override the benefit of paying the 1 card down and the score is not likely to change.
If someone had 1 credit card with a balance near the credit limit and the balance is paid down to 30% or less, you should see at least 42 points, probably more. If they have 1 or 2 other cards that are also near the credit limit or maxed out and those balances were not paid down, then those will override the benefit of paying the 1 card down and the score is not likely to change.
- ChiTownFunding
- Contributions:1
The Amounts owed (or Balance to Limit ratio) accounts for 30% of a FICO score. Ideally you want to keep your credit card balances between 1% and 20% of the limits. Doing so will optimize your credit score.
There are a lot of other factors in calculating the score. Paying the credit cards down will absolutely help to increase the score, but increasing it 42 points just off paying down some cards is a bit of a stretch.
I have been in the mortgage industry for 10 years and never seen a 42 point jump from just paying credit cards. But when coupled with some other factors, I have seen credit scores improve over 100 points in 30-60 days.
Payment history, Length of credit, Credit variance, and new credit are all important parts of a credit score. I have had some success by sending my (dead file) clients to http://www.CreditFirm.net to increase their FICO scores. There's a lot more to focus on than just Amounts owed. Good Luck
There are a lot of other factors in calculating the score. Paying the credit cards down will absolutely help to increase the score, but increasing it 42 points just off paying down some cards is a bit of a stretch.
I have been in the mortgage industry for 10 years and never seen a 42 point jump from just paying credit cards. But when coupled with some other factors, I have seen credit scores improve over 100 points in 30-60 days.
Payment history, Length of credit, Credit variance, and new credit are all important parts of a credit score. I have had some success by sending my (dead file) clients to http://www.CreditFirm.net to increase their FICO scores. There's a lot more to focus on than just Amounts owed. Good Luck
- Andrew Adams, "203K Specialist"
- Contributions:9349
Jason,
That may have been helpful 7 months ago..... Pay attention to when threads were last posted on or you will continue to pull up long dead threads!
That may have been helpful 7 months ago..... Pay attention to when threads were last posted on or you will continue to pull up long dead threads!
- Jason Wroble, "Mortgagejaw"
- Contributions:107
35% of your score is payment history, 30% is balance owed. All you would have to do is pay down your total debt obligations below a 50% threashold and each line of debt below 50% and this will raise your score. Make sure NOT to close any accounts until you are ready for your score to drop a few points, but will come back higher in a couple of months. You can also check out www.myfico.com
Hope this helps! :)
Hope this helps! :)
- Clay Branch, "Georgia Loans"
- Contributions:7786
- Karen Parsons Fiddler, "Karen Fiddler"
- Contributions:189
Hi,
You can do this yourself....if the loan broker already told you what to expect from paying certain cards a specific amount....then go ahead and pay those cards. Then once they are paid, you ask the credit card companies for a statement with the new balances, you can fax those to the 3 credit bureaus and tell them to rush the rescore. They can normally get these done in about 24-36 hours if you tell them it's for a mortgage.
I've done this many times for clients. Be sure that you know in advance the benefit of these moves....any loan broker can tell you with a computer program they can use for free. I have a lender who can help you with that for free, if you aren't sure.
Hope this helps.
Karen
You can do this yourself....if the loan broker already told you what to expect from paying certain cards a specific amount....then go ahead and pay those cards. Then once they are paid, you ask the credit card companies for a statement with the new balances, you can fax those to the 3 credit bureaus and tell them to rush the rescore. They can normally get these done in about 24-36 hours if you tell them it's for a mortgage.
I've done this many times for clients. Be sure that you know in advance the benefit of these moves....any loan broker can tell you with a computer program they can use for free. I have a lender who can help you with that for free, if you aren't sure.
Hope this helps.
Karen
- CG101
- Contributions:16
Ummm...wow...
First of all, I suggest you get a daily credit monitoring service (not to be confused with a monthly, like truecredit), that you pay $11.99 a month for. I personally use http://www.chaseidprotection.com You will get the benefit of seeing how your credit reports are doing daily and don't have to wait a whole month. Plus, you get the benefit of ID theft protection and getting a general idea of how your credit is doing. You get the Fake FICO scores (FAKOs) with the Chase product and you get daily monitoring. Plus you won't get hit with a hard INQ on your reports when you check the reports using this method.
Second, while a credit card will report to your bureaus on a particular date, it can take 1-3 days for the same information to hit all three (e.g. it can be on Equifax on day one, TransUnion on day 2 and Experian on day 3...the daily will tell you for sure).
When your information has hit the credit bureaus, you can then go to myfico.com to see how Equifax and Transunion FICOs have improved. For the time being, Experian won't let you view your EX score. I would much rather take this route of waiting a month or so than dealing with this Rapid Rescore jazz.
First of all, I suggest you get a daily credit monitoring service (not to be confused with a monthly, like truecredit), that you pay $11.99 a month for. I personally use http://www.chaseidprotection.com You will get the benefit of seeing how your credit reports are doing daily and don't have to wait a whole month. Plus, you get the benefit of ID theft protection and getting a general idea of how your credit is doing. You get the Fake FICO scores (FAKOs) with the Chase product and you get daily monitoring. Plus you won't get hit with a hard INQ on your reports when you check the reports using this method.
Second, while a credit card will report to your bureaus on a particular date, it can take 1-3 days for the same information to hit all three (e.g. it can be on Equifax on day one, TransUnion on day 2 and Experian on day 3...the daily will tell you for sure).
When your information has hit the credit bureaus, you can then go to myfico.com to see how Equifax and Transunion FICOs have improved. For the time being, Experian won't let you view your EX score. I would much rather take this route of waiting a month or so than dealing with this Rapid Rescore jazz.
First of all, I would simply say don't pay anyone to do this for you.
Second, Take care of this yourself by contacting each credit reporting agency, with evidence. You'll probably have to pay a small fee for each transaction but it is worth it.
You certainly have the right to contact each credit reporting agency and ask for their help. You may be surprised.
Second, Take care of this yourself by contacting each credit reporting agency, with evidence. You'll probably have to pay a small fee for each transaction but it is worth it.
You certainly have the right to contact each credit reporting agency and ask for their help. You may be surprised.
- fx2
- Contributions:2
Thank you all for your insightful answers. I learned about the rapid rescore services through a mortgage broker, whom offered the service for $225.00 with the caveat that I do my loan with him (I'm in the market shopping for a purchase loan). My logic behind the initial question was, if the service was available through a broker I could try to do it myself giving me more control over the transaction. Based on what I've learned via the internet and this forum, it confirms that this service is only available through mortgage brokers/lenders. Well justified.
- Andrew Adams, "203K Specialist"
- Contributions:9349
What I don't understand is what FX is trying to accomplish other than getting his credit score to 740.
- Clay Branch, "Georgia Loans"
- Contributions:7786
Balances, as in more than 1 card. The cost is $30 per bureau per acct. 4 cards = $360.00. If you pay them now, the 30% balances will report on the next cycle for free with higher scores. Depending on how slow the cc people are getting you the paperwork, you could spend 2 weeks getting the rescore so if you can wait 2 additional weeks, apply the cost to paying on a card and get it for free. Most card companies dont report until around the 8th-10th so if you take the free route, pull your report on the 10th or 11th and only 1 bureau. That way, if not reported yet you can pull 1 bureau again a few days later. Once you see it on 1 bureau, then have CR updated w/other 2 bureaus.
- Nathan Wolf, "natewolf"
- Contributions:1804
You can use an attorney to correct issues on your Credit Reports. Many clients have recommended LexingtonLaw.com as a service they have used with success.
You can also access HUD Approved FREE Consumer Credit Counselling in California.
RapidRescore is a Mortgage Banking industry term. You can search "Rapid Rescore" at the FTC.gov website for more information. Why are you opposed to allowing a broker or lender help you do this rescore?
- Arla
- Contributions:138
Doing some searching on rapid rescoring and use as consumer, it seems like you would have to go through someone who is approved to do this.
Thinking outside the box, I don't know if a broker could help you do this without actually doing anything about getting you a loan? I'd almost guarantee that there would be some fee (no idea if it's even legal for them to do it, so just a thought).
Thinking outside the box, I don't know if a broker could help you do this without actually doing anything about getting you a loan? I'd almost guarantee that there would be some fee (no idea if it's even legal for them to do it, so just a thought).
- Andrew Adams, "203K Specialist"
- Contributions:9349
Or what value it would be to the consumer..
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:3369
Rapid Rescore is only available to lenders/brokers, do not know of any method to access as consumer.
How to use rapid rescore services as a consumer and not through a mortgage broker or lender?
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