Can I raise my credit score from 640 from 630 by the end of the year?
By December/January, my credit union will hopefully be willing to give me a new car loan if I maintain good payments. A month after they told me this I paid off all my bad debt left over from job problems and then moving to another state for a better job. All I have left is my student loans which I can easily start paying when they kick in next month and one low-limit credit card which I am using for one tank of gas a month. So I think I'm doing everything right, my life is finally on track, and getting the car I want is the last piece of the puzzle. Those last 10 points will probably mean a slam dunk for the loan, and at least put me into a better interest rate bracket according to the banks information. So is there anything that will help by the end of the year beyond just keeping my one card balance low and paid and paying my student loans? Will opening another low-limit credit card help or hurt?
Anonymous2009-08-21T18:00:15Z
Favorite Answer
A credit score change about every 12 months. It's usually 10 points per month so you should be ok by December. Do not open any new accounts until your score goes up.
Opening another card will hurt in your case. The card will look like potential debt to the bank and will not increase your credit score. If you were waiting a few years and were using the cards and paying them off on a consistent basis with no late charges this would add to your credit score. If you had a number of open cards with no balances and you closed them that would also improve your credit score. As it is it looks like you are doing everything right. Now just make consistent payments with none being even a day late and you will probably qualify for your loan.
If you are paying the minimum amount on your loan, and your credit card, start paying more than the minimum every month, regardless if your statement says to pay the minimum.
Your debt to income ratio can help increase your score, also. You want your line of credit to be higher than your debt. Example: If everything reporting in your credit files as a debt totals up to $10,000, then the dollar amount of your line of credit should be at least $20,000 or $25000. This is what increases your score rapidly, and other card companies will offer you credit because of your wise use of your credit. You have $25,000 worth of credit and you have only used $10,000 of it.
maybe opening another card may do it if you don't owe anything on? one thing the credit union will look at is the amount of money you owe on credit cards compared to the amount you can borrow? if you only owe say 10% of the total that is good. or if you have 2-3 and only owe on one that is good. it shows you have more you can use but don't. that is resposibality!! good luck!
I wouldn't suggest opening another card, especially since you don't need it and are trying to improve your score.
Based on the info you've provided 10 points in 3 months seems very possible.
If you haven't pulled your credit report do so and then contest any closed or delinquent account on there. myfico.com has sample letters and makes it very easy.