Credit reports scores

[invest1choice]

I just made payments on my three credit cards to bring them down 50% of the high credit limit . Example
hooters I owe $441 with a $1000.00 high balance
Orchard owe 226.02 400 high balance
Premier owe 108.75 high balance 200.00

Our problem was we had over 50% owed on these credit cards which brought our scores down .. So since we have to refinance the house I had to find the money to do this so hopefully the scores will go up by Jan 1st 07 .. That is when I was going to let mortgages pull the credit to see how much higher it goes up. Since we just made this payments Dec 2nd it will not show for this month but I am hopefull Jan it will update and recalulate. Does anyone know for sure that this is how it works ?
By the way I have cut up these credit cards and not using them anymore .. The premier charges 6.00 a month fee so I guess that is all that is being used right now. Honestly I must be a shop a holic when I have credit card availablility so I am just paying it off and not going to use them .. I know it does not help rebuild your credit if you do not use them monthly but what about just having balances on them and you are paying them down? I am not sure what to do now .. Does a mortgage help rebuild your credit as much as this credit cards ? that are addicting to me , which is what got me in trouble before .. Well at least I did not go max out the hooters to 1000.00 .. I give my self credit for that but to have ran it up to 650. is bad enough.. anywasy anyone that knows if this is procedure is going to work by Jan .. Please help.. Thanks Friends

[HHM]

You do realize, that in most cases, regardless of your score, you will be considered Sub-Prime for mortgage purposes if you are within 2 years of discharge?

That doesn't mean you can't get a mortgage, but if you wait another year, you will probably be able to get Market Rates.

[Grace]

The issue of whether or not carrying a balance improves your score is apparently one that's still up for debate. I believe that unless it's known for certain, don't pay any interest. That means pay the balance off when the statement comes. If you search the web, you'll find articles arguing both opinions. No one really knows for sure what makes your score go up. I suggest choosing the approach that's best for you which is to not pay any interest.

[SinkingFast]

Actually, Invest,.......... Mortgage Lenders are looking for a balance of Credit. A mix of secured and unsecured. They don't wanna see all CC's or just a car loan. Mortgage Lenders want to see how you balance all types of credit.

I think I remember reading at Fannie Mae the criteria they are looking for is a mortgage, an auto loan, and a couple of revolving lines of Credit. If you didn't have a mortgage previously, they will take a letter of payment history from your Landlord in lieu of the mortgage.

About the CC's. Balance vs no balance. Once you have the accts, if they are open and paid as agreed, they will report OK each month. Even if paid as agreed is a Zero balance it still says OK.

[Grace]

I question the assertion that Fannie Mae or any mortgage lender would prefer someone to have a car loan rather than not having a car loan. That doesn't make sense to me. If there's some article or other info that tells this, I'd like to read it.

[invest1choice]

I was going to get that car loan but the interest was like 17% .. that was too high and I did not want to be upside down. I learned that lesson before the BK7... Thanks for all the replies.. I know I will get a subprime loan but I am on a arm now that just reached 10.5 every 6 months it goes up.. so I have to refi now . I started with a 7.5 and would loe to get that again ,,
I am hoping our scores go up after the one year bk7 anniversary .. and with those balances paid down a little.. I noticed there is controversy about what is right and wrong to make your credit points go up..

[SinkingFast]

I question the assertion that Fannie Mae or any mortgage lender would prefer someone to have a car loan rather than not having a car loan. That doesn't make sense to me. If there's some article or other info that tells this, I'd like to read it.

http://www.brokeruniverse.com/grapev...?thread=326229