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amberd521 · Joined: 15 Sep 2009 Posts: 7 3.25 Dollars($)

We are in a hurry to get a house so that we can receive the 8k tax credit next year. Weve been working very closely with our lender and real estate agent to get us in one by the end of Nov. They have both looked at our credit report and discussed with one another why our score isnt higher. They both have no clue. Apparently they think we should be in the 700 range when were actually in the 600 range. We need a middle score of 620 to get our approval, and right now it is 615 (ouch right?). We have a fingerhut account with a 0 balance on it, and our lender suggested us carry a small balance on it, and he seems to think that that should give us atleast 5 points. Is this true? Im scared it will just show our total debt balance higher, and lower the score. If this isnt a good option, can anyone suggest a way to raise our score 5 points? Weve paid down our credit cards so that we only carry a balance of about twenty dollars, weve paid off all collections (quite a while ago), weve done everything. Should we spend a little on our fingerhut account? Please help!!!

jveenstra · Posted: Tue Oct 06, 2009 9:04 am Post subject: Credit

I have never heard of increasing credit scores by increasing a balance.

If you have already paid down cards, it seems like only the passage of time with no derogatory credit will be increasing the score.

The lender could know something I do not. I've never heard of such a thing.

gmakerley · Posted: Tue Oct 06, 2009 12:40 pm Post subject:

john, i don't think you've missed anything. i've never heard of such a thing either. it doesn't make any sense. the only thing i can think of that would remotely connect with this is if they've got accounts that have been noted as closed and the constancy of available credit has lessened. but this scenario wouldn't take care of that, so i am baffled as well.

amberd521 · Joined: 15 Sep 2009 Posts: 7 3.25 Dollars($)

Its an account that has carried a zero balance for years. We dont even carry a card, and had basically forgotten about it. The credit limit is only $130 dollars.

gmakerley · Posted: Wed Oct 07, 2009 9:55 am Post subject:

again, i think your lender hasn't a clue. i'd say take a good, hard look at that credit report and see the reporting dates of the creditors. if you notice that one or more of them hasn't reported since 08/09, run it again and you ought to see an improvement with another month reported of good payment history. you may even have an account reported as of 10/09 when you run it again, improving it even more.

reporting dates matter because you want to have as extensive a history of favorable payments as possible. but what has been proposed is preposterous, to me (and john as well, apparently).

amberd521 · Joined: 15 Sep 2009 Posts: 7 3.25 Dollars($)

Thanks! I was kind of thinking the same thinking, which is why I asked. Our report does actually have 2-3 things that havent reported since 08/09. I also noticed that our car loan shows a balance of 16,500, when really it is 15,700.

jenkin7 · Posted: Thu Oct 08, 2009 2:05 am Post subject:

Hi amberd,

You need to dispute the erroneous entries on your credit report. If the actual balance on your car loan does not appear correctly on your credit report, you must dispute that with the credit bureaus. You also need to make sure that whatever payments you have been making are getting reported to the bureaus on time.

eric1 · Posted: Thu Oct 08, 2009 4:27 am Post subject:

Amber

Sometimes the data on the report is a couple of months delayed. That would expain the difference in the balance of your auto loan.

gmakerley · Posted: Sun Oct 11, 2009 9:07 pm Post subject:

eric is right on - no need to waste much time in disputing balances; they will adjust as your creditor sends in its data.

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Will using credit on our $0 balance account raise our score?