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Question By
nbk41407

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My credit is 580+/-. I need to increase by credit score by 50-100 points by the end of the year.
I currently have 1 secured credit card with a $300 limit which I pay it off every month. I have 3 paid/settled collections on my credit history, all with a 0 balance. I've tried to get them to remove them, but the collection agency wasn't having it. I have one open collection on my account due to drop off 4/14, but it's only $300. I have student loans which are deferred due to the fact I'm still in school. I want to increase my credit limit to $1000. Will this increase my credit score at all? Me and the boyfriend are looking to buy a house within the next few months and I need my credit to catch up to his (which is in the low-mid 7's). Is there any way to do this so I can get at least a 650 score. It seems that no matter what I do, my credit score keeps dropping and I don't know why(620 > 600 > 587). Any advice will be appreciated.

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Top Contributor
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113 People Helped

Delete the Bad, Keep the Good, Maintain.

Helpful to 48 out of 57 people

1. 35% Of your Score is Negative History (PAID or UNPAID).  Work with a credit repair company (or if you want a little torture do-it-yourself) to have those paid collections deleted completely.

2. 30% Of your Score is your Debt-to-Income Ratio.  Increase your credit limit and continue to pay your card in full as follows: Find out your due date and your  card reporting date and pay your card off in full 1 day before your due date.  Then, DO NOT USE your card until one day after your card reports to the bureaus. Example: Your bill due date is the 30th and your closing date is the 6th. Pay your card in full on the 29th and wait to use it again until the 7th.

Reply by
alainhernandez

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8 People Helped
Helpful to 8 out of 13 people

Awesome Respond! Question, have you actually done this yourself?

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27 People Helped
Most Helpful Response

my score jumped from 555 to 633

Helpful to 27 out of 28 people

         I got a secured card from First Progress with a $300 limit. Not a great card(poor service), but it does work for rebuilding credit . I got  the card in August and I've had up to $249 on it. On the day I get the bill I mail the check for the whole amount. They reflected a high utilization for that month,but the next month I ran it up to $149 paid in full the day it came in. They reported that the next month I had decreasd my overall utilization.This month I dropped my spending down to $90 and havent recieved the bill yet but when it comes im gonna pay it that day.I have never understood this credit stuff and everyone seems to have a different therory and this is whats working for me at the moment.

August to November I've jumped 78 points and hoping for 700 by April.

Good luck I hope this helps

2 Contributions
93 People Helped

hi

Helpful to 25 out of 32 people

well, instead of paying your debt off each month, you need to show you can make consistant payments in a timely manner... by this i mean, if you charge 200.00 pay 50.00 for 4 months,  you need to do this for 6 months to establish credit. also apply for a capitol one non-secured mastercard, and do the same with this. your credit rating will soar!

Reply by
shflyers

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13 People Helped
Helpful to 13 out of 19 people

In the past week I have spoken with many individuals/companies and done a ton of research as I am in the same situation.  According to a friend of mine who is the VP of mortgage lending at a bank & a credit counsler, both said this exact thing.  DO NOT pay off your card before the due date.  It will be reported that you have no balance & look like you don't use it, therefore not showing you are being responsible making on time payments.  It will not help your score.  If your credit limit on the card is $300, make a purchase of $75-$100 (no more or your debt to limit ratio will lower your score), then pay it off over a couple of months.

Reply by
Eddie1982AZ

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2 People Helped
Helpful to 2 out of 3 people

NO WAY!! That is just handing away free money in interest. Don't wait 4 months to pay off something, that's ridiculous. Charge something small (like a bill that reoccurs the same every month) let the statement generate; pay it off in full. Don't charge $200 at once and then spend 4 months paying it off that's ridiculous.

Top Contributor
28 Contributions
315 People Helped

You can get an FHA loan with a 580 score

Helpful to 10 out of 11 people

You can get an FHA loan with under a 600 middle score with some lending institutions but not many. I would recommend finding a broker or service to help you locate a reputable lender that can approve your loan at a decent rate. I have client's who have got approved with a 580 score... If anyone can find you a loan they can!

Top Contributor
28 Contributions
315 People Helped

The Lenders Network can do 580 and up

Helpful to 5 out of 8 people

Left out the site to go to, they specialize in lower credit score loans. www.thelendersnetwork.com

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