topic Re: Score jump: lower utilization in Understanding FICO® Scoring

Score jump: lower utilization

OntheHorizon — Sun, 30 Sep 2012 19:12:40 GMT

So I'm expecting a pretty decent bonus in November, in which most will be used to pay off/down debt. Currently my debt-to-income ratio is about 71%. I'm looking to get it around 35% after paying off some loans and CCs. Haven't been late on ANY payments in over 5 years. What kind of score increase do you think I can expect? Not looking to buy anything...yet, but I am trying to qualify for a better int. rate on my car, currently 7%. Thanks.

Re: Score jump: lower utilization

my-own-fico — Sun, 30 Sep 2012 23:48:20 GMT

FICO does not consider income. Also, your FICO score increases more from paying down credit cards than installment loans. You may furthermore want to read Fico max out CC % and When to pay Credit Card for best Utilization.

Re: Score jump: lower utilization

OntheHorizon — Mon, 01 Oct 2012 01:19:36 GMT

OK,

So considering most of my cards are currently at 90-94% utilization, if I get them down to about 35% or so, roughly how many points increase can I expect to see?

Re: Score jump: lower utilization

my-own-fico — Mon, 01 Oct 2012 01:36:44 GMT

I could easily imagine 50-100 points. It all depends on the rest of your specifics, and even then of course we can't be sure. I don't know about FICO, but in the world of Experian, credit cards are considered maxed-out when you have spent 90% or more of the credit limit, so that would work nicely in your favor.

Re: Score jump: lower utilization

Shogun — Mon, 01 Oct 2012 01:42:40 GMT

I'd say you woIll see a decent bump in your score. 9% or less is optimal but you will still see an increase.