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Started By
Message
Improving FICO score.
Posted on 3/19/16 at 2:39 pm
Posted on 3/19/16 at 2:39 pm
Trying to help my brother get his finances in order and qualify for a mortgage. His current score is 719 and the lender said they can give him a much better rate if he is closer to 760.
He just sold his house and is about to pay off about 25k+ in revolving debt. He says he has never been more than 30 days late and according to his credit report that looks to be accurate.
My question is, with no more debt other than student loans, what would be the time frame for his credit to move from 719 to the 760 range?
He just sold his house and is about to pay off about 25k+ in revolving debt. He says he has never been more than 30 days late and according to his credit report that looks to be accurate.
My question is, with no more debt other than student loans, what would be the time frame for his credit to move from 719 to the 760 range?
6
Posted on 3/19/16 at 3:02 pm to SippyCup
Well it can move every month.
Posted on 3/19/16 at 4:05 pm to SippyCup
It's going to tak some time with derogatories on his report.
Posted on 3/19/16 at 4:45 pm to VABuckeye
quote:
It's going to tak some time with derogatories on his report.
This. It won't happen quick, even if he pays off all his debts.
Posted on 3/19/16 at 5:04 pm to kywildcatfanone
Will a 719 to a 760 actually make that much of s difference in his rate?
Posted on 3/19/16 at 10:07 pm to SippyCup
With a 719, good debt to income ratio, and a decent down payment I would think he'd be able to get a good rate shopping around.
As for a timetable for a 40 point increase it would depend on what's lowering it and length of credit history.
As for a timetable for a 40 point increase it would depend on what's lowering it and length of credit history.
Posted on 3/19/16 at 10:29 pm to yellowfin
Thanks, I did suggest he shop around.
Posted on 3/19/16 at 10:56 pm to SippyCup
If he has $25k in revolving debt, depending on his credit limits, he could see a substantial jump when paying that off. Debt to credit ratio of revolving debt is a big chunk of the FICO scoring model. But I'm not sure he will get that much better rate from 719 to 760 although all lenders are different. The bank I'm doing my construction loan through had an under 700 and over 700 rate.
Posted on 3/20/16 at 11:28 pm to VABuckeye
quote:
It's going to tak some time with derogatories on his report.
quote:
He says he has never been more than 30 days late and according to his credit report that looks to be accurate.
What derogatories?
Posted on 3/21/16 at 7:22 am to foshizzle
When I read he's never been MORE than 30 days late it implies to me that there are some 30s on his report.
This post was edited on 3/21/16 at 7:25 am
Posted on 3/21/16 at 10:26 am to SippyCup
I have a great credit history and had an absurd score for my age, but I recently got engaged and did one of those 12 months free financing deals. I had the liquid money, but if somebody is gonna offer me interest free financing, aka free money to my ears, I'm gonna take it.
Didn't really catch that they just open a retail credit card with a limit at the price of the ring. A maxed out retail card dropped my credit score somewhat significantly.
So I paid off a decent chunk right away and then I requested 3x limit increases on my Amex cards because it's a soft pull. Also opened up a new card that had a large limit. So my available credit shot up and my utilization shot down. My credit score bounced about 50 points in a month.
Didn't really catch that they just open a retail credit card with a limit at the price of the ring. A maxed out retail card dropped my credit score somewhat significantly.
So I paid off a decent chunk right away and then I requested 3x limit increases on my Amex cards because it's a soft pull. Also opened up a new card that had a large limit. So my available credit shot up and my utilization shot down. My credit score bounced about 50 points in a month.
Posted on 3/21/16 at 12:31 pm to SippyCup
Sometimes I just takes time. My score shot up 24 points this month and I didn't do anything differently.
This post was edited on 3/21/16 at 12:33 pm
Posted on 3/21/16 at 4:58 pm to wizziko
i missed a payment by 2 or 3 days once on one of my credit cards (I actually think it was Capital One's fault, but anyway...) and the credit tracker tool they have actually said my score went up. Not sure how accurate it is though.
Posted on 3/21/16 at 9:54 pm to Roberteaux
quote:
i missed a payment by 2 or 3 days once on one of my credit cards
That won't affect your credit at all. You will have paid interest for that period though
This post was edited on 3/21/16 at 9:55 pm
Posted on 3/23/16 at 8:00 am to wizziko
quote:
That won't affect your credit at all.
i wasn't aware of that. good to know
Posted on 3/23/16 at 8:04 am to Roberteaux
Although you will incur a late fee for payments a couple of days late it won't affect your credit until you are 30 days past due. Overlapping payments and having two due at the same time is the trigger for a 30 day late.
However, there may be other implications for paying after the due date but before the next payment is due. For instance, it could trigger a higher rate on the card.
However, there may be other implications for paying after the due date but before the next payment is due. For instance, it could trigger a higher rate on the card.
Posted on 3/23/16 at 2:57 pm to SippyCup
Once the debt is paid, all he needs to do is show proof of new balances and can get credit re-scored within a week depending on whether lender wants to incur costs of rescore. We do it quite a bit for clients. 719 to 760 depending on down payment is significant difference not just in interest rate, but PMI rate as well if less than 20% down payment.
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