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How to improve credit scores?

My goal is to boost my FICO scores to qualify for a loan. FICO 5, 4, and 2 are currently 589 EQ, 534 TU, 556 EX and based on MyFICO FICO 8 is currently 604 EQ, 618 TU, 587 EX. I made some mistakes a few years back which really damaged my credit and I want to make things right. I am moving to a new state and I want to buy another home to avoid renting. I plan to pay off the remaining items on my credit worth $24k and I have already paid off all credit cards that are affecting my scores. Should I pay off my student loan $16k and car loan $18k to improve scores further? by mwilson816 from Washington, District Of Columbia. 8 days ago Reply

Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,529 contributions

The biggest factor that most people can control that has a big effect on credit scores is credit card debt. Max'd out cards kill your scores. Generally speaking long term installment debt like a car or student loan are not the things to worry about, and keeping a little "active credit" is very important too. It is OK to pay those off as long as you've wiped out credit cards and any recent collections first. Hopefully those scores are from before paying off credit cards. Good Luck. I lend in MN WI IA SD ND. Find me at - Cambria Mortgage, NMLS 274132

5 days ago
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