Ok, I have opened up a secured Bank account and the limit is $300, I was told to charge immediatly to it $90 and then to pay it off, now is that correct or should I pay the minimum do, when due? Also I have a another charge account with a 1500 credit limit but my balance on it is only 47.99 I was told that I should raise my balance to about $300 if I want to start seeing some actual changes in my credit score, what do you think? Also where can I get my actual Fico scores with out it hurting my credit as in Inquery? As of March 3, my scores going off of what was pulled from a mortgage company (trying to buy a house in the very near future) was Equifax a 546 Experian a 589 and Transunion a 600 although the loan officer I am working with now told me thea she can get me a loan I really would like to get all three scores in the mid to up 600's I feel it should be higher now cause some stuff has been deleted off from pfd and some stuff should just be paid in full now. Help please I need to be in new home by June.
FICO will use average account age, total reported available credit, and total debt in it's calculations, determining a debt to available credit ratio as one component of its calculation. It is not clear whether it matters even whether large balances have been run up and paid off, or stayed there some time, and with only $1500 and $300 limits on your cards, don't buy anything you wouldn't be buying anyway. You will want low balances, but what would matter more is how long the accounts have been opened and showing "paid as agreed" with no lates. Between now and June, if these are both new accounts, you wouldn't be able to have much effect beyond allowing the negative effects of the original inquiries and newness of the accounts to fade some.
well I have four tradelines that are one year old and are in good standing, with paid as agreed and no lates, they are from a furniture company. Also can someone tell me which company I should use to watch my credit score and report to me?
I would not charge over 25% of your credit limit at any given time and it would be very wise to pay your balance in full each and every month making sure if you mail your payments to allow up to 10 days for it to arrive (better early than late) by paying your balance in full each and every month your are saving yourself money by not paying interest and still building your credit the same as someone who only pays the minimum payment with out costing yourself money on the interest. And remember to only charge what you can afford to pay off each month. Good luck with purchasing a new home.
thanks guys, I also have another question on my four other tradelines that I have had opened, since April last year they are installment account, there is no interest on them so I am not paying any interest, they are in goodstanding, no lates, I wanted to pay off one of themto reduce my DTI, but I was advised not to I was told looks better for there to be a balance, and me paying on it then for it to be paid off, especially since I don't plan on making any more furniture purchase till after I buy the house, what should I do?
FICO has been said to perfer revolving around 2% to 5% of the available balance provided under the account. I am not a proponent of doing this if one must incur interest charges but, if like you that isn't the case, I'd give it a shot.
