Best method of boosting credit score poll

[Agent 99]

I want to put myself in a position to buy a house within 12-18 months.

The 'ol credit score has never really been good since I've never had a credit card and have 1 or 2 old dings from teenage mistakes.

Im getting a new card solely for boosting my credit.

Is it best to pay the balance in full every month or to leave a small balance (around 30% of credit line) on it from month to month?

[Nappers]

Re: Best method of boosting credit score poll

Pay it off!

Also, don't apply for every credit card on the planet.

Every time you apply for credit, it goes against your credit rating.

Not sure if every store reports to credit agency (like buying a TV, Washer/Dryer etc) so check on that.

Get a fuel card and pay it off at the end of the month. It also helps you keep track of how much gas you use and set aside if you use cash normally to pay off the card so you don't fall into the trap of "I'll just make payments and spend the cash!"

If your '09 Scion is on a payment plan, I would add $100.00 bucks extra and pay it off faster.

NEVER be late on any payments, generally a credit card boost's the percentage rate if your late and it usually doubles or triples the finance rate.

Don't get divorced and expect the other side to fulfill their obligation.......Like what happened to me....6 years later I'm still paying for it and now need a co-signer for cash.

Don't go overboard and don't count overtime as your normal income! I have some friends at the ol' lockup who used their "average" income when buying these nice new trucks and the overtime comes to a halt and they struggle as well as with their house payment that they over inflated their income to get the house.

If you use the credit card, use it then set aside the money from paydays to pay it off like the fuel card.

You don't want to pay interest on food/gas/movies/dinner etc that is long gone and still paying for it right?

I pay cash for everything right now until I get my post divorce stuff taken care of.

Hope that helps.

Aaron

[Agent 99]

Re: Best method of boosting credit score poll

Because the sole purpose of this card would be boosting credit, it would be use only to buy things I already buy normally like food and gas.(and Meguiars!)

I was just getting conflicting advice from friends and the Internet.

[Nappers]

Re: Best method of boosting credit score poll

Or...you could talk to the bank/mortgage company you may go through to boost it up.

Have you run your credit report? A lot of free ones online.

Free Credit Report Dot Com comes to mind listening to their songs all the time on TV....

Good luck! Don't overdue it on your first purchase of a house, get what you want but sacrifice some things if needed so you don't stress yourself on the monthly payment/insurance/taxes/broken water heater/broken heat pump/broken A.C. etc etc etc.

[I Shine]

Re: Best method of boosting credit score poll

Check with local mortgage companies or look for programs that helps with obtaining mortgages. Such as NACA (Neighborhood Assistance Corporation of America).

Have them examine your credit report and advise you on what you need to obtain a mortgage. Work out a plan with them to meet these goals. Your credit might be as bad as you think.

DO NOT fall for any kind of sub prime loans. Yes, you could probably sign for a mortgage today with your credit as is but the risk is not worth it.

Try not to get over extended. Easy to do when buying a house.

Good Luck

[Agent 99]

Re: Best method of boosting credit score poll

Thanks!

I wonder why I'm (before this poll) getting such different answers from people.

A finance-savvy girl at work said leave a balance. I've read both answers are correct online at credit websites and all the bank will tell me is "we're not financial advisers all we recommend is that you pay at least the minimum every month."

Heck with the minimum. I want to do whatever it takes for MAX CREDIT ASAP! lol

[RaskyR1]

Re: Best method of boosting credit score poll

It is good to have a few revloving credit accounts, just makes sure to keep the balance under 30% of the credit limit, but best thing to do is use them and pay them off monthly. I've worked hard the last 5 years bringing my score from the low 500's up into the 700's now.


I will never again let me credit go to ****!

Creditboards.com is a good site to learn about what to do and what not to do.

http://www.creditboards.com/forums/

[Bert31]

Re: Best method of boosting credit score poll

When I bought my house back in 2002, the only credit history I had was a credit card that I had for about 9 years (back when I turned 18) and paid off every single month. I never had a car loan, I always bought used cars that were 5 to 10 years old that I could pay cash for.

When the loan officer ran my credit history and credit score, he said I had the highest credit score he had ever seen for someone under 30 years of age, it was right at 800 or so. I am sure it helped that the check I sent to my credit card company had just cleared the day before so my balance was zero or very close to it.

I mentioned to the loan officer that I was surprised that I was able to have such a high score with only a credit card on my history, his reply was that since I had had that credit card for so long, that gave the three agencies plenty of history to look at and gave them comfort that I was able to pay off debt.

So when I bought my house, I decided to use my good credit to my advantage to avoid Principal Mortgage Insurance (PMI). I bought the house by taking out a 30 year fixed for 80% of the cost of the house, a variable line of credit for 10% and cash for the remaining 10%. Because of my credit rating, I was able to get the line of credit for Prime Rate or Prime plus .5%, I forget which. I paid that line off a few years ago and now have more than 20% equity in my house.

[Honda Fit]

Re: Best method of boosting credit score poll

My credit score is 700+. All I've been doing is paying above my minimum balance every month.


Maybe you guys can give me a a suggestion to my problem:

I am trying to pay off my credit card right now that has a balance of $2300. Interest rates on this thing are high, so I applied and was approved for a new credit car that has 0% Balance Transfer for 12 months, but my credit line for this car was only $1600. What should I do?

A) Transfer $1500 over to the new credit card and have an $800 balance on the original card?

B) Apply for another credit card with 0% interest for 12 months so that I can transfer the remaining $800 balance to it? This way, I will have 2 new credit cards with no interest so I can pay off my card faster.

C) Other

[Zuke]

Re: Best method of boosting credit score poll

Have you thought of buying a house now and saving 8k before December...Just a thought

[ColonelCash]

Re: Best method of boosting credit score poll

My credit score is 700+. All I've been doing is paying above my minimum balance every month.


Maybe you guys can give me a a suggestion to my problem:

I am trying to pay off my credit card right now that has a balance of $2300. Interest rates on this thing are high, so I applied and was approved for a new credit car that has 0% Balance Transfer for 12 months, but my credit line for this car was only $1600. What should I do?

A) Transfer $1500 over to the new credit card and have an $800 balance on the original card?

B) Apply for another credit card with 0% interest for 12 months so that I can transfer the remaining $800 balance to it? This way, I will have 2 new credit cards with no interest so I can pay off my card faster.

C) Other

Option C. Pay it off as fast as you can. While transferring balances might work in theory, I'd be looking to eliminate this debt ASAP and get it over with rather than move it from account to account, only to have this debt still lingering after 6 months.

[Chop]

Re: Best method of boosting credit score poll

I agree. Pay it off ASAP.

The guys who send you the offer of zero balance transfer know that they will make money on you based on some historical data they have from you via credit report. They will make money on the transfer that is if you bite, then on interest if they think you will not pay it off in 12 months.

[Honda Fit]

Re: Best method of boosting credit score poll

If I could pay it off all right now I would. Being a recent college graduate, my financial situation right now isn't allowing me to pay just a bit more than the minimum monthly payment. With my current interest rate my monthly payment isn't doing much to my balance because the next month most of what I just paid will be back again. So I need to somehow transfer that balance to another card. After 12 months my interest rate on the new card will still be lower than what it is now.

The cc company will be making 3% off of my total balance. If I was to transfer all of it that would be $69.

Stupid college and stupid debt.

[ColonelCash]

Re: Best method of boosting credit score poll

No offense bro, but if you are that close to being in the red then you really don't need to think about buying a house until you get some solid financial footing.

Also, if you transfer the balance and don't pay it off within the 12 months, you might get hit with 12 months of compounded interest from day 1 of the "no interest" period. That is usually around 25% interest compounded over 12 months. From the sound of it, you have more of an income problem than anything, detail some cars or work retail for a couple months and get outta this mess.

[Honda Fit]

Re: Best method of boosting credit score poll

Buying a house? Lol, I never said anything about buying a house. That's the thread starter.

Yeah I have an income problem. College grad can't find a decent job in this lousy economy.