I am thinking of buying a house in the next year or so. If I buy a new house, my plan is to take out a short term mortgage on the new house and sell the current house once I've moved. Once the current house sells I will use the proceeds to pay down the mortgage or hopefully pay it off in full.
Today I ordered a FICO score from Experian. I expected I would rank in the highest category. Instead it returned a score of 825 out of 990 giving me a B rating.
My file contains the following:
Credit Items:
VISA
$8,500 limit. One 30 days past due (I was late by a few days about four or five years ago). High balance $5,716 recent balance $2,698. I pay this card off monthly and charge most living expenses on it for the frequent flyer miles and to keep track of my spending. Date opened 01/1990
Macy's credit card
$500 limit. Open, never late. Opened 06/2006. High balance $364 Recent Balance $0.
Mortgage
Original amount $87,500. Paid, closed/never late Date opened 09/1993 Last reported 08/2005.
Car loan
Bank of America. Original Amount $5,062. Paid, closed/never late. Date Opened 09/1993. Last reported 11/1997.
Car loan
American Honda Finance. Original Amount $10,644. Paid, closed/never late. Date opened 08/2003. Last reported 10/2004.
So, I've paid off a house and two cars early and have had the same credit card for 17 years.
I'm puzzled why my score isn't higher. The one 30 day late can't be dinging me that much. The only thing I can think of to raise the score is to increase my VISA limit.
Does anyone have any ideas as to how I can raise this score ?
I would think the fact that we have no debt and a fairly high gross income would help us with the loan rate, is this correct ? Any idea how big of a deal my "B" rating is in the big picture of getting a loan ?
Thanks,
-helen
Today I ordered a FICO score from Experian. I expected I would rank in the highest category. Instead it returned a score of 825 out of 990 giving me a B rating.
My file contains the following:
Credit Items:
VISA
$8,500 limit. One 30 days past due (I was late by a few days about four or five years ago). High balance $5,716 recent balance $2,698. I pay this card off monthly and charge most living expenses on it for the frequent flyer miles and to keep track of my spending. Date opened 01/1990
Macy's credit card
$500 limit. Open, never late. Opened 06/2006. High balance $364 Recent Balance $0.
Mortgage
Original amount $87,500. Paid, closed/never late Date opened 09/1993 Last reported 08/2005.
Car loan
Bank of America. Original Amount $5,062. Paid, closed/never late. Date Opened 09/1993. Last reported 11/1997.
Car loan
American Honda Finance. Original Amount $10,644. Paid, closed/never late. Date opened 08/2003. Last reported 10/2004.
So, I've paid off a house and two cars early and have had the same credit card for 17 years.
I'm puzzled why my score isn't higher. The one 30 day late can't be dinging me that much. The only thing I can think of to raise the score is to increase my VISA limit.
Does anyone have any ideas as to how I can raise this score ?
I would think the fact that we have no debt and a fairly high gross income would help us with the loan rate, is this correct ? Any idea how big of a deal my "B" rating is in the big picture of getting a loan ?
Thanks,
-helen