29 People Helped
Member Since: January 2014
I paid off my morgage about 7 years early. During the timeframe I sped things up, I couldn't find any "safe" places to put additional savings that would equal the 5.75% on my mortgage. Savings accounts were much lower. During 2008-2010, the stock market wasn't a good looking safe investment.
Yes, the mortgage interest was deductible. But if I was paying taxes on a 4% investment, I would still have been underwater.
With the benefit of hindsight, I could have put the money in a good stock index fund, and came out ahead. But I could also have come out ahead if I had withdrawn my 401K from stocks and put it into stable funds.
Just leave enough money available that, if there is an emergency, you don't have to pay high credit card rates for emergency loans.
kevink4's response was:
I speculate that paying off the CC first would be the biggest impact. Pay to reduce utilization of all your cards, and that should help. Paying off collections won't affect utilization ratio.
This effects the score. Someone who actually looks at the report will see the collection, and paying that off may help more in that case.
It seems the consenses is to show at least a 1% utilization. Under 10% is best. But you don't have to carry a balance and pay interest. Just have a statement balance and pay off in full before the due date.
I don't see with your credit history that you have shown that you will be able to get to 800 anytime soon. Mine is in excess of 800, but that is due to having a paid off house, just paid off the car (which increased my score about 3-5 points), and low credit card utilization rates. And my average age of credit is about 8 years.
If you've improved it by 100 in the last year, it is probably due to lower CC utilization but there are limits on the portion of your credit score that helps on.
I just applied online for an increase at Capital One, and was turned down too.
The reason they rejected ME was that I wasn't using enough of the existing limit ($10,000).
The reason I wanted to increase it is because I need to replace my heating/air system, and wanted to charge it all on one card. 1.5% cash back, and all that :)
Bumping it to $13,000 or so would have been sufficient.
Note, I didn't call. Maybe I could have explained why I wanted it, and why it wasn't a real risk for them. I have never paid interest on that card with them.
I just applied online with another card (1% back), and was immediately upgraded to a $16,000 limit. Not anywhere close to my limit on that card either.
The credit card company has more information than what Credit Karma has. For instance, when you apply you generally have to provide an income. Which doesn't show up on your credit report.
It should update when the CC company next updates your credit report.
None of my reports show any current employer. One shows an employer from 10 years ago. Another shows 13 years ago and 26 years ago :)
Apparently credit card companies don't report employers to Credit Reporting agencies anymore.
I don't know what it would take to get to 850. Maybe having 12 or more cards? Making payments, on time, on both a car and a house? Long average credit history?
On one of my credit card sites which gives me a score, it appears they are scraping the bottom of the barrel to explain why I can't get past 830.
"Your largest credit limit on open bankcard or revolving accounts is too low". My highest card ia a $16000 limit with about $1400 on the most recent statement.
You have too many inquiries on your credit report (3, changed cell phone companies, and 2 new cards over the last 2 years)
"The balances on your accounts are too high compared to loan amounts. Which must be taking into account my car loan which I paid off 3 year early in January.
I had to provide some information when I bought a car 2 years ago. AND I had to pre-pay the out of state excise tax and tag fee through them. Apparently, there is a big problem with people buying new cars, then shipping them overseas. The state wants their taxes paid, and people in other countries with high tarrifs were avoiding them.