Question:
I want to boost my credit score up to 750+ I keep hovering around 744, 745, and I can't pay off much of my debt. I thought by expanding my debt to credit ratio I could boost my score. I have two credit cards with 25k$ max each with no credit debt only student loans.
Answers:
If you already have 50K open on credit I would not open another credit card. Yes it would improve your ratio because it gives you more to spend and MAY improve your score. But it could also lower your score in the short run because of the inquiry and new account that you received. The score is NOT the only thing creditors look at, especially when purchasing a house. They will look at your Potential to get into debt. If you have 50K open, your score may be high, but they may feel you are a high risk because if you max out the 50K would you be able to pay it off.
Instead you should look at keeping activity on these cards. Purchase things that you would normally pay cash for each month, then at the end of the month pay off the balance to avoid interest. This will show activity on your card and in 5 or 6 months could increase your score by several points. The other thing you need to be sure you are doing is verify that your report is correct with the big 3 credit reporting agencies(TransUnion, Experian, Equifax) Lenders will pull all 3 so if you only have the score for 1 you need to get the score based on the other two reports also.
errr um,. .obtaining another card could also drop your current rating
more than like what will help your score is a debt to income ration reduction
good luck
Your credit score is just fine where it is. Don't get a new card, it will lower your score. Your debt-to-income ratio is what drives your purchasing ability at this time. It sounds like you will be fine, if what I am reading is correct: You have two cards that have limits of 25K each, but no debt on them? If you want to try and improve your score, close one of them (get a confirmation in writing).
More questions, let me know, if not - happy house hunting! Start now, it may take a while to find a house, and at least a month for closing, typically.
don't apply for new credit ..pay as much as you can to your student loan 1st .. applying for new credit might lower your score for a few months
i believe getting another credit card will affect your score everytime you open a new account - credit card, bank account checking or savings, loan ect... it lowers your score. you have a great score i would not mess with it. unless someone can do it in there name dont open anthing in yours. and dont let anyone check into your credit score either that also affects your score
by applying for another card can boost you debt to credit ratio. But you have to weight this against having another card with no activity on it. It is counted against your credit to have inactive credit cards. You are better off staying with what you have, the mortgage rate you would be getting from a 750 instead of a 744 is not signaficant, you can always refinance when you make timely payments on your after a year which will boost your score more and can save you more money in the long run. good luck!
Opening a new account will lower your score and not raise it. If you do not owe on the credit cards, close the one you’ve held for the shortest amount of time.
Your current scores are pretty good. You should be able to get a good interest rate.
Remember to get pre-qualified before you start to house hunt. Keep in mind that most lenders will approve you for more than you are really comfortable with paying. Plus, when making an offer, the sellers will want to see a pre-approval letter. What I’ve done in the past is to tell the bank how much to pre-approve me for, since you should know right now how much you want to put down, and how much of a payment you want. Then when you submit an offer, the seller doesn’t see that you can afford a lot more than what you are offering. In my experience it makes the negotiations go smoother.
Good luck!
Better to get a bank secured loan.
Put $400 into a savings account. Come back a week later and request a secured bank loan against the account.
Take the $400 loan and open another savings account at another bank. Come back a week later and request another bank secured loan agains the amount in savings.
Three and a half weeks after taking out the first loan, go pay it off in full. Then do the same with the other account before 30 days due.
Pay loans off in full. Do it again at another bank. Only use the money to open savings accounts and get secured bank loans. 3-4 times is enough.
Bank loans are hard to get. When time to buy your house in January, your credit will reflect 3-4 bank loans paid off in 2007 in full.
Your credit score will look like caviar. Trust me.
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