A little more on the credit scores...
I'm not sure whether my credit scores jumped so much higher just as a result of the bankruptcy coming off my record. A month or so ago, I also made an effort to raise the credit limits on my two credit cards to improve my debt-to-credit ratio. I was able to get one card's limit raised to $30,000 and the other to $17,000. I also got the interest rates lowered to 10% and 12.24%, respectively. I am carrying approximately $16,000 in debt. (You read that right.)
The increased "activity" probably affected my credit scores negatively, though who knows how much. With the improved debt-to-credit ratio, I likely still came out ahead. At worst, maybe it's a wash? Need I even say how ridiculous it is that it's such a mystery?
Obviously, the $16,000 debt will come up again in future posts. But I think that's enough for now. :)
posted by SMB @ 2:12 PM
3 Comments:
Credit scores are funny things,sometimes you don't know what will affect them. Keep up the great work and you will continue to see them rise. Have you started looking for a house in the Seattle area yet? I contacted a mortgage broker today and am getting the process started, or at least finding out where I stand and what work lies ahead for me.
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Credit scores used to be my enemy. But as I am continuing to learn methods to lowering my credit card debt I am beginning to like my ever changing and increasing credit score more and more. I was able to increase my score by 49 points in a month and a half. The five factors that determine your credit score are the following:
* Payment history – 35%
* Amounts owed – 30%
* Length of credit history – 15%
* New credit – 10%
* Types of credit used – 10%
I am glad to see that this part of the financial world is working out for. Good luck!
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