Hello, I currently have a FICO score of 653. I have a $2,000 limit Visa with a $0 balance (I use it sparingly, pay it off same month), I just paid off my student loan (which they completely removed from my credit report instead of changing to paid in full or whatever. Ugh!), and also completely paid off my only installment loan (a personal loan for $1500). I do not have a car payment or anything like that. I had expected my credit score to soar a little higher than this, finally being debt-free and all.
What else can I do? Ask for a higher limit on my credit card? Should I take out another installment loan just for the payments? I want to buy a house soon and would like my credit score to be at least in the 700's. The MyFico simulator says to just pay bills on time for the next 24 months for a score in the 750-790's but I'm feeling a little impatient. Ideas?
It's best to show a 1-9% util on your credit reports, in your case you have a 2,000 limit. What I would do is find out exactly when your creditor reports to the bureaus so this way you know when its best for you to pay your card down to zero. Say they report on the 20th make sure you have a small balance on your card when they report, lets say 100.00 so this way it will show you have a 5% util. then once you know its been reported pay it in full. and keep doing that every month and it should help your score.
It actually hurts your score to have a 0% util, you need to show activity and a good payment history, 35% of your score is "payment history" and 30% is "util= Utilization Ratio=Debt ot Credit."
I'm no expert and I hope this advice I have given you is good advice, maybe one of the "High Achievers" will chime in.