2million - My Journey to Financial Freedom

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Thursday, November 03, 2005

An Update on Improving My Credit Score

Last week I found out my credit score was lower than I expected as a result of taking advantage of multiple 0% balance transfer offers. You can find out more about this at mymoneyblog's overview of how to play the 0% game.

At the time I had 4 0% balance transfer balances:
-Bank of America Balance:$13,030/Limit $13,200; [99% borrowed]
-Citi Balance $16,980/Limit $17,500; [97% borrowed]
-HSBC Credit Card Balance $5810/Limit $7500; [77% borrowed]
-GM Card Balance $200/Limit $2,300. [9% borrowed]

Here is what I have done over the past couple of days to boost my score:
  • inquired about bumping credit limit on the BofA card, but required credit inquiry so I declined
  • consolidated my 2 Citi cards (other was unused) to boost my limit on my Citi balance transfer (which will make the % borrowed go down)
  • paid off GM card balance transfer
  • paid $4000 to HSBC credit card
  • paid $500 to BofA card balance transfer
  • paid $355 to Citi card balance transfer to bring % of limit borrowed to < 90%

Here is my credit card picture as of now:
-Bank of America Balance:$12,530/Limit $13,200; [95% borrowed]
-Citi Balance $16,600/Limit $18,500; [89% borrowed]
-HSBC Credit Card Balance $1810/Limit $7500; [24% borrowed]
-GM Card Balance $0/Limit $2,300. [0% borrowed]

Out the 4 balance transfers I have paid off 1, and hope to finish paying off the 2nd card this week. I also reduced the other 2 BTs from (99%, 97% to 95%, 89% respectively). I also estimate my overall percentage borrowed has gone from 47% to 38%. I am hoping that these actions are enough to bump my score back into the lower 700s in the next month or so.

As you may have guessed I am sensitive about my credit score because I am contemplating buying another house. I am just thinking about it so far, but incase an opportunity presents itself I want to make sure I can take advantage of it.


  • good to see a blog dealing with credit card issues. Credit cards are a necessity in Western Life. Sadly they can be one of our biggest liabilities. I have a site dealing with credit card debt management. You might like to take a look

    By Anonymous Anonymous, at 11:59 AM  

  • Eeeesh. I cringe every time I read about people playing the balance transfer game.

    To me, cash is king, but credit is queen, and you never want to upset the queen.

    I am in the process of investing in real estate. I just got my first house rented, and am in the process of looking for the next one. I learned very quickly the power of your credit score. Not only is it easier to get a loan for a substantial amount of money, but the interest rates are much lower with higher credit scores.

    To me, you can only play the balance transfer game for so long. Let's face it, there are only so many credit cards you can apply for. On the other hand, it takes a significant amount of time to rebuild your credit score.

    I'm not trying to talk you out of it, by any means (or sound like your mother), but just be careful of how you manage your balance transfers vs. your FICO score.

    Good luck!


    By the way, nice blog! I'll be following you closely.

    By Anonymous Anonymous, at 6:45 PM  

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