Need Some Help!

[Anonymous]

I have a big problem, after a divorce and an auto accident my credit has really taken a dive. My credit score went from 730  to median of 540. I recently settled for my accident and now can try to fix everything. I am trying to buy a home and need to raise my credit to 650+. Here are my options:

I have enought money now to pay off more than my debit which just say is around 62,0000.

Do I pay everything off now and will my credit score increase?

Do I get current and lower all my debts to less than 50 percent

Do I pay all off except one credit card?

Is there a quick solution?

I have one vehicle loan

I have 3  unsecured loans

one credit card

[Anonymous]

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EMGZon wrote:

I have a big problem, after a divorce and an auto accident my credit has really taken a dive. My credit score went from 730  to median of 540. I recently settled for my accident and now can try to fix everything. I am trying to buy a home and need to raise my credit to 650+. Here are my options:

I have enought money now to pay off more than my debit which just say is around 62,0000.

Do I pay everything off now and will my credit score increase?

Do I get current and lower all my debts to less than 50 percent

Do I pay all off except one credit card?

Is there a quick solution?

I have one vehicle loan

I have 3  unsecured loans

one credit card

---

When are you looking to buy?

What negatives are on your CRs?

Have you pulled all 3 CRs?

What's your interest and balance on the vehicle loan?

Are the unsecured loans installment? Like signature loans?

What's the interest, balance and CL on the CC?

No quick solutions, but quick is a relative term.

[Anonymous]

Looking  to buy a home soon. I need help on how to approach this debt

vehicle 5.5% bal- $14,000

unsecured loan 10,800 11%

unsecured loan  19,500 12%

credit card 7,500   7.9%

I need to find out should I just pay them off and have no bills.....I can pay them off but don't know if that is the best route to fix my score.

[sl]

what is your debt to income ratio?

Also, you may want to pay down your cc to approx,. 7% utilization an once that is reflected on your CB - write a GW letter to the companies that show you past due....explain your circumstances and ask if they will remove any adverse reporting from your CB.

[Anonymous]

The loans are installments, I have pulled all three credit scores and want to boost them up. When I have got behind on my payment while I was injured I got caught up and brought it up over one hundred points...that was great now I was wondering if I pay them off whould that boost them up more. My friends tell me yes and no...

[Anonymous]

Check out the thread Credit Scoring 101 at the top of the forum.  30% of your score is based on how much of your available credit you are using (shoot for 1-9%).  Don't close any accounts even if you pay them off, at least not yet....  The Credit Scoring 101 will help you understand what's killing your score and what you are able to change or compensate that's under your control.

[sl]

It will defintely spike your FICO score as your utilization has gone down. (how much is unknown). You want your utilization no higher than 10% when looking for a house.

Here is what I would do...I would figure out the I want to put down on my house.  I recommend no less than 10% and leave that out.  I would leave out a few thousand dollars for an emergency and put the rest towards bill.

[Anonymous]

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EMGZon wrote:

vehicle 5.5% bal- $14,000

unsecured loan 10,800 11%

unsecured loan  19,500 12%

credit card 7,500   7.9%

I need to find out should I just pay them off and have no bills.....I can pay them off but don't know if that is the best route to fix my score.

---

Keep the vehicle loan. Interest is low.

On the CC, is $7500 the CL or the balance?

Have you started talking with a mortgage broker? If not, that's probably the route you wanna go. If you like, feel free to PM me and I can put in touch with a guy who can really help. He knows debt, credit and mortgages very well.

Message Edited by Noah_Bodie on 06-15-2007 03:08 PM