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Replies (5)
- Clay Branch, "Georgia Loans"
- Contributions:7837
The credit bureaus do not deal with debt ratios, they have no idea how much money you make. Paying off a car loan and doing a rapid rescore will probably have little to no impact on your scores. You can use the "What If" simulator for just a few bucks to see the potential score impact.
- annika23
- Contributions:24
Thank you. I wasn't aware that debt ratios and payments didn't play into the overall credit score itself.
- Tom Matthews, "Tom Matthews in TN"
- Contributions:54
You have most control over you credit scores with revolving debt balances. For example, I just had a client with a Fingerhut credit card. Credit limit of $300 and balance of $230. I had him pay the balance down to $10 and it increased his scores by 25 points. So look at any credit cards. You always want the balance to be less than 30% of the credit limit. And it seems that getting the balance to around $10 (as opposed to paying it off) does the most for scores.
Good luck,
Tom
Good luck,
Tom
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
Ann,
The credit score plateau's for you would be 720, 740 & 760. With a few lenders going to 780 as the highest plateau. A lot of borrowers make the mistake of paying off accounts or applying funds unnecessarily. It's best that your mortgage professional helps you with this.
Happy funding, Rudi
The credit score plateau's for you would be 720, 740 & 760. With a few lenders going to 780 as the highest plateau. A lot of borrowers make the mistake of paying off accounts or applying funds unnecessarily. It's best that your mortgage professional helps you with this.
Happy funding, Rudi
- Jason Hall, "RapidRescoreCredit"
- Contributions:107
What Tom and Clay said.
If you're in the 700's, you best option to get your scores higher would be to pay down your revolving accounts and rapid rescore those balances.
Your closed accounts (paying off your car will close the tradeline) do not help your scores anymore. It's like benching one of your good players on your team, without them in the game anymore, your team is weaker.
If you're in the 700's, you best option to get your scores higher would be to pay down your revolving accounts and rapid rescore those balances.
Your closed accounts (paying off your car will close the tradeline) do not help your scores anymore. It's like benching one of your good players on your team, without them in the game anymore, your team is weaker.
Rapid Rescore Queston on Auto Loan Payoff
If we have a credit score of 720 but are hoping for 750 or higher and want to show that an auto loan is paid off, to remove the payment from our debt ratios, wouldn't that be a good thing? Specifically, we have a $500 a month payment with zero interest that will be paid of in July 2012. We want to refinance in the next couple of months. Wouldn't removing a $500 payment from our ratios improve the score? I am confused.
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