Credit Score

**redls1** · 07-22-2011, 12:50 PM

I just sent out over $7,000 to pay off credit card debt. I have about $300 left and am okay with that. I also refinanced my car from 8% to a 4.1% through the local credit union. They also gave me a credit card that earns points and is a fixed 9.9%. I want to cancel one of my other cards but not sure if I should. How long till my credit score should go up? Also why is there such a big difference between transunion and equifax? I mean almost a 70 point difference between the 2. I want toget a different car in the near future but want my score to go up for the better interest rate. Im at 710 but know 720 or 730 is the magic number. When I go to get a different car I will also have about $1500 to put down. I have 4 major credit cards, 2 gas cards and walmart which we use for food and maybe some gas but it is paid off as soon as we get it in. So what is the wisdom of ls1.com?

**krese** · 07-22-2011, 12:55 PM

depends on how long it takes your cc company to report the fact that you paid $7k down. if they report monthly (which most do now) your score should go up quite a bit for paying down that much debt especially if you were near your limit on that card. you should be close to 720. i don't know for sure why the 2 companies are that much different... i know when i look at my report one thing shows up on one and not the other. dunno why. sounds like you are doing things the correct way to rebuild. i went through the same type of thing and now i'm at 765 from a very poor score when i was in my 20s

**redls1** · 07-22-2011, 01:29 PM

Im from buffalo where is Brewerton?

**DrMilhouse** · 07-22-2011, 01:38 PM

2 weeks to a month...

**67CamaroRSSS** · 07-22-2011, 01:44 PM

Don't cancel any existing cards you already have as this is scored as a negative against you. I don't know why but that's how it is. Any card that has an existing balance over 50% of limit is frowned upon also.

Instead put them away and use maybe once a year (something small) just to keep current.

Works for me as my FICO has been over 800 for years now.

**Pony_Eater** · 07-22-2011, 02:12 PM

Like Jim said..I learned that in a banking class this year that you should only cancel cards as a last option. Its sometimes even better just to cut them up than to cancel the credit line

**Detroit Power** · 07-22-2011, 02:20 PM

I'm on the fence about cancelling cards. I have 'heard' also that cancelling cards will lower your score (at least temporarily); however, I know for a FACT that carrying cards with revolving lines of credits hurts your score. It makes you more of a risk to CC companies, for example, if you went crazy and maxed all of them out.

I would personally consider getting rid of one or two of them you don't use.

Your FICO score will be hurt by the debt/equity ratio so keep that in mind too, although this should be obvious. There's a 'magic' formula used to calculate your FICO. You'll never find the true formula, but you may find enough bits and pieces online to educate yourself.

750 here...well, just prior to financing 155k on a house. :-)

**redls1** · 07-22-2011, 03:57 PM

I was always in the 650-680 range so am proud to be over 700. I just want that magic 730 atleast and am hoping all I did will get me close. What screwed me alittle was I had a credit card with a $12,000 limit and had $6000 on it. I have never been late but they lowered me to $8000 which showed me above 50% on my card. Yeah at this point most are gonna be in the drawer but was gonna use one of my points card for gas so whoever is the cheapest I will use it there. I use my walmart card for the .10 off right now. I might get shit about gas but have tried all kinds and never really noticed a difference in how my car runs or mileage. What helped is when I bought a car so I had things other than credit cards.