Crunchy Credit…an update

I’ve been working really hard paying off credit card debt, paying our bills on time, trying to save a small amount each month towards our down payment on a house, and decided it was the right time for an update on the status of my credit. Recently, I made the 9th payment on my student loan to get it out of default and back into good standing. It was literally the last thing that was under the “negative items” list on my credit. Even my one judgment fell off early this summer, so everything else, my credit cards and any other revolving credit, is under the “good standing” items. Here are the items that are now contributing to a potentially higher credit score:

• No late payments
• No defaulted loans or credit cards
• No judgments
• A decent length of credit history – 4 years (my oldest good standing item is dated from 1998 – however,  this item fell off the report because it was over 7 years. I need to work on getting it back on my report!)
• Since my credit cards are paid off, my credit to debt ratio is low. The only item I owe money on is my student loan, totaled at approx. $9,000. My over all available credit, using my credit cards as a baseline, is $4,600. (This includes a card I share with my husband).
• No new credit (However, I’m not quite sure if this is a good thing or not.  I know it is a small factor in the overall score, but this part always confuses me.)

These are all positive factors that should increase my score by 20 – 40 points. At least, that’s what I’m hoping for. Ideally, by early next year, I’d like my score to be at least 700. Looking at what my score was in the beginning of summer, 604, and how much it had improved within 3 months prior to that, I can safely assume that I should be able to reach at least 660 by January 2010. Here is a chart of where my score is, where it previously was, and where I’m hoping to be in 4 months:

Of course, this prediction is based on improving by 24 points every 3 months. I’m hoping that once my student loan is reported in good standing, my score jumps 40 point within 3 months, that would bring me closer to my goal of 700 by January of next year. You’ll see by the chart that I am predicting my score for this month and for January. I haven’t pulled my newest score yet, I want to wait and make sure my student loan is reported in good standing first, before pulling a new score. No need to waste $10 until I know for sure it has improved. By the end of October or early November, I’ll have a true score and share it then as a follow up to this post.

Did I leave any factors out when predicting my score? Does anyone have a similar circumstance or has seen their credit improve more than 40 points in a 3-month period? I’m just curious. Maybe I’ll be happily surprised come November.

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