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  #1  
Old 08-29-2009, 05:54 PM
calicovixxen calicovixxen is offline
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Default Increasing Credit Score

Ok, heres the thing...I want to buy a house. Yea, it really wasn't planned so I have no money saved, but I don't want ot move again and Im sick of renting. I have a good paying job and make good money. My only demonds are the 9 credit cards. I can handle a mortage paymnet minus the credit cards. Although Im not sure what my credit score is, i know my chances of qualifying for a loan is better if they were paid off. My parents will help me pay off the CC. My question is how long will it take for my Credit score to go up after paying off all my cards? I also plan on holding onto the card I had the longest and the one with the lowest APR and cancelling the rest. All they do is tempt me and i don't need that tempation when I want to buy a house and need to live with in a budget.
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  #2  
Old 08-30-2009, 01:35 AM
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sapphirecapital sapphirecapital is offline
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Default Re: Increasing Credit Score

first get a copy of your credit report (its free), second your credit depends not only on the credit lines used but if you made your payments and how far you used the lines, if you are in the lower 2/3st of the max line amount and made your payments timely than you are in no trouble, in that case increase the payments slowly and pay them off over a short time but keep the cards, only use them for minor stuff and pay them off when the bill comes. If you are delinquent the damage is already done, tak to them and minimize the payment.
When you have the credit file you know, look out for grants and programs for first time buyers, there is help available for those without the downpayment, a good real estate broker and a good mortgage bank will help you
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  #3  
Old 08-30-2009, 05:00 PM
calicovixxen calicovixxen is offline
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Default Re: Increasing Credit Score

How do I get rid of credit cards i don't want? I want to buy a house not spend the rest of my life being smothered under credit cards. I have 9. I will keep maybe 2 but I don;t want the tempatation of having them around. I don't understand why the credit card demonds discourage you from cancelling your cards if you know that they put you deeper and deeper into debt. I would think if you wish to cancel its telling them you are or tryig to be a responcible person and not tryiong to live beyond your means.
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Old 08-30-2009, 09:10 PM
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sapphirecapital sapphirecapital is offline
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Default Re: Increasing Credit Score

Funny man, after paying them it is your decicion which one you us, the ones you don't like cut them up and throw them away, they will still be as existing lines on the report but when you do not use them their value in the credit file will diminish, just remember the more credit lines you have active without collateral (such is cc) the better your credit is.
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Old 09-01-2009, 09:05 PM
daniel daniel is offline
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Default Re: Increasing Credit Score

Unfortunately, I haven't posted enough on this forum to qualify my account for link-posting privileges, but if you Google "follow steph credit score," the very first item is the article to which I would have linked. As the writer in the article mentions, and as sapphirecapital mentioned, the length of time that you have an account open factors into your score. So if it won't incur any penalties to just leave some of the cards open with no balance, then you might want to cut the cards up (as you mentioned, to remove the temptation of using them) but leave the accounts open while you're applying for a mortgage.
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Old 10-19-2009, 01:55 PM
murk murk is offline
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Default Re: Increasing Credit Score

True, If you have some accounts with a $0 balance DO NOT CLOSE THEM, as it can actually hurt your credit score.
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Old 10-19-2009, 08:20 PM
First Financial Help First Financial Help is offline
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Default Re: Increasing Credit Score

I work with a number of lenders. They will not like 9 credit cards even if they are paid off. The sweet spot is between 3-6 cards. Credit reports will look at available credit and with our economic situation, that possible debt can become a negative. Most lenders want at least three different credit references.

Canceling a card will not negatively impact your account. But if the credit card cancels for you, then it will for a short term.
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Old 10-23-2009, 01:29 PM
Chris the Credit Guy Chris the Credit Guy is offline
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Exclamation Re: Increasing Credit Score

Ok, heres the thing...I want to buy a house. Yea, it really wasn't planned so I have no money saved, but I don't want ot move again and Im sick of renting. I have a good paying job and make good money. My only demonds are the 9 credit cards. I can handle a mortage paymnet minus the credit cards. Although Im not sure what my credit score is, i know my chances of qualifying for a loan is better if they were paid off. My parents will help me pay off the CC.
Quote:
Originally Posted by calicovixxen View Post
My question is how long will it take for my Credit score to go up after paying off all my cards? I also plan on holding onto the card I had the longest and the one with the lowest APR and cancelling the rest. All they do is tempt me and i don't need that tempation when I want to buy a house and need to live with in a budget.
No!! don't cancel the cards!! I really hope that I caught you in time but, this is a very common mistake with regards to your credit.. This will drastically reduce your debt ratio and kill your credit!

To answer your question on the cards, your creditor will usually update the bureaus after the billing cycle ends.. and you should see an instant increase there after.

30% of your credit score is debt ratio! Optimum mix of credit is one mortgage, one car payment (or installment) and 3-5 credit cards (or revolving accounts) these can be credit, gas, even department store cards.
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  #9  
Old 08-30-2010, 09:11 AM
goodyphilips goodyphilips is offline
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Default Re: Increasing Credit Score

Quote:
Originally Posted by calicovixxen View Post
Ok, heres the thing...I want to buy a house. Yea, it really wasn't planned so I have no money saved, but I don't want ot move again and Im sick of renting. I have a good paying job and make good money. My only demonds are the 9 credit cards. I can handle a mortage paymnet minus the credit cards. Although Im not sure what my credit score is, i know my chances of qualifying for a loan is better if they were paid off. My parents will help me pay off the CC. My question is how long will it take for my Credit score to go up after paying off all my cards? I also plan on holding onto the card I had the longest and the one with the lowest APR and cancelling the rest. All they do is tempt me and i don't need that tempation when I want to buy a house and need to live with in a budget.
Well you are making a smart move by retaining the one with the longest period and with lowest APR and canceling the newest ones where you have defaulted more than often.
This will certainly reduced your revolving credit and enhance your credit score, how soon that will happen? I am not so sure.

But going for mortgage with healthy credit score is certainly a very good idea.
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  #10  
Old 09-25-2010, 11:42 AM
mikefinance mikefinance is offline
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Default Re: Increasing Credit Score

Pay off your cards and just use one. This create a lower debt credit ratio.
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  #11  
Old 09-25-2010, 11:43 AM
mikefinance mikefinance is offline
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Default Re: Increasing Credit Score

I think carrying a small balance is okay too. Since they like to see a little debt with your credit cards.
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Old 07-20-2011, 09:06 AM
james Ki james Ki is offline
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Default Re: Increasing Credit Score

Quote:
Originally Posted by goodyphilips View Post
Well you are making a smart move by retaining the one with the longest period and with lowest APR and canceling the newest ones where you have defaulted more than often.
This will certainly reduced your revolving credit and enhance your credit score, how soon that will happen? I am not so sure.

But going for mortgage with healthy credit score is certainly a very good idea.
I agree making sure you keep the card with the lowest APR is the ideal move, but card company's can at anytime jump the rates has happened to me
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  #13  
Old 09-01-2011, 08:41 AM
expert.debt expert.debt is offline
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Cool Re: Increasing Credit Score

If you might be contemplating about getting a house or a automobile, your credit score is a extremely essential number.

The interest rate you are going to pay for the dollars you borrow will be established, in big component, by this three-digit amount that's created from the details in your credit report.

Most lenders have carved-in-stone principles about handing out the best terms, and individuals policies almost usually place a key emphasis on your credit score. If their finest premiums are provided to borrowers with a score of 700 or higher and yours is a 698, these two points could cost you countless numbers of dollars.
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