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Established Member
Jayjinx
Posts: 21
Registered: ‎04-24-2009
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Paying a bunch down/off

[ Edited ]

I just paid $13,300 dollars against my CC debt which was around $17.3K, I think total available is 28K (maybe 25K) my utul was 60%+. I have around 4K left on my two cards. I have two lates which are almost 4 years old and I am working to have them removed as they were literally $4 and $11 dollar bills!!! Yeah I know should have done this a long time ago, they are the only negs on my report oldest account is 8.5 years old.

 

My credit scores are as follows....

 

Equ-671

Trans-714 (note this report already reflects paying one card off that was at $4770/$5000)

 

The simulator puts my credit score at 741-781, and 764-804 once the $13,300 hits . It also shows that if I were to pay them down to 0-10% over 24 months my scores would break 800... Depending on a few unknows I could actually pay off the remaining 4K in the next few months. 

 

Can anyone confirm the accuracy of the simulator with real world results? From doing some reading I see that the util part of the score doesn't have a memory does that mean I will indeed see a 70 point increase? Maybe a 100 point increase if I payed all off and keep a very small balance on two cards?

 

Thanks

-JJ 

Message Edited by Jayjinx on 04-25-2009 10:02 AM
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GomerPyle
Posts: 114
Registered: ‎03-17-2009
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Re: Paying a bunch down/off

I had utilization of 57% 2 months ago and went to 13.8% by paying my cards down. My initial EQ score was 743 and now is 787. There were no other factors that changed as far as I know. These results are real world. Before I had that result the simulator said I would have a 20 point boost at most. It was wrong for me.
Established Member
Jayjinx
Posts: 21
Registered: ‎04-24-2009
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Re: Paying a bunch down/off

[ Edited ]

Thanks for the info... 

 

So in your experience the Simulator was actually a bit to conservative. Obviously I am not expecting the same type of results. You gained 44 points where the sim said 20. It seems that your score is still in the same ballpark though... The simulator projected a score of 743-763 (20 points at most) and you sit at 787.  

Message Edited by Jayjinx on 04-25-2009 11:02 AM
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VEEnVEGAS
Posts: 645
Registered: ‎10-24-2007
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Re: Paying a bunch down/off

[ Edited ]

I don't really have experience at paying off such a large percentage of utilization all at once. But I've wondered when doing these simulations if some of the projected point increase would come from the aging of all of your credit since it says "paying credit cards down to 0-10% over 24 months". You'll definitely receive a large bump in scores...just wondering if it might be a smaller increase since you won't experience the aging along with the pay down. May depend on the AAofA at this time.

 

Keep us updated! Would love to know.

 

 

Edited to add: I believe I saw a a 20-25 point increase when my utilization went from above 30% to somewhere below 30%.

Message Edited by VEEnVEGAS on 04-25-2009 11:14 AM
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Ulan
Posts: 790
Registered: ‎09-09-2008
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Re: Paying a bunch down/off

[ Edited ]

VEEnVEGAS wrote:

But I've wondered when doing these simulations if some of the projected point increase would come from the aging of all of your credit since it says "paying credit cards down to 0-10% over 24 months".


Yes, that's one thing most simulators won't do. They just give you an estimate what might happen to your score if you paid off your debt now, at this very moment. If your cards get older until you paid them off, or if you even get rebucketed into a different age group, the effects will be vastly different from the prediction.

 

This said, I see 40 point swings of my score just from normal cc usage, always with PIF, but not always before the statement cuts (I don't really play the FiCO game very well). And this is just the range of 5% to something in the 30%'s on single cards (my overall util tends to be in the 10%'s at worst).

Message Edited by Ulan on 04-25-2009 11:24 AM
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haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007
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Re: Paying a bunch down/off

You can combine the effects of time and lowered util with the sims.

Slide down below the "Simulate best action" option to "Pay Down the Balances on All Your Credit Cards." Subtract about 20 bucks from whatever your current balance is; in other words, don't project a $0 balance. For the one month (immediate) option, just enter your balance less $20. For three months, divide that figure by 3 and enter that figure. For six months, divide by 6 and enter that figure, and so forth.

Be sure to use the "Simulate FICO score" button directly under whatever field you're in, or it will project something different.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Established Contributor
VEEnVEGAS
Posts: 645
Registered: ‎10-24-2007
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Re: Paying a bunch down/off


Ulan wrote:

VEEnVEGAS wrote:

But I've wondered when doing these simulations if some of the projected point increase would come from the aging of all of your credit since it says "paying credit cards down to 0-10% over 24 months".


Yes, that's one thing most simulators won't do. They just give you an estimate what might happen to your score if you paid off your debt now, at this very moment. If your cards get older until you paid them off, or if you even get rebucketed into a different age group, the effects will be vastly different from the prediction.

 


No, just the opposite. The simulator shows what would happen if you paid the cards off in 24 months, not "at this very moment". My point was that some of the points gained would come from the aging of these accounts over 24 months. Guessing that an immediate payoff might not gain you quite so many points.

Established Member
Jayjinx
Posts: 21
Registered: ‎04-24-2009
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Re: Paying a bunch down/off

[ Edited ]

No, just the opposite. The simulator shows what would happen if you paid the cards off in 24 months, not "at this very moment". My point was that some of the points gained would come from the aging of these accounts over 24 months. Guessing that an immediate payoff might not gain you quite so many points.


 
The simulator has the ability to do both right?
One option is to pay the 13,300 now
The other option is to pay of X amount of card debt over X amount of time correct?  For instance 1100 dollars every month for 12 months.
 
I do notice that the best plan of action is to pay 90-100% down over 24 months and that shows a credit projection of quite a bit higher than maying it all off now. I'm sure that is based on several factors you mentioned already... 
 
 

 

Message Edited by Jayjinx on 04-25-2009 01:33 PM
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Watchmann
Posts: 985
Registered: ‎05-14-2008
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Re: Paying a bunch down/off

I would not continue to pay interest over a longer period of time in the hope that you may get a few more FICO points.  The goal is to get out of debt, so if you have the money pay it off.  Don't be a slave to the FICO score.
Established Member
Jayjinx
Posts: 21
Registered: ‎04-24-2009
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Re: Paying a bunch down/off


Watchmann wrote:
I would not continue to pay interest over a longer period of time in the hope that you may get a few more FICO points.  The goal is to get out of debt, so if you have the money pay it off.  Don't be a slave to the FICO score.
I'm not. As mentioned in my original post I already paid over $13,000 of the cards off, actually $15K including a card my wife has that isn't on my credit.
 
They just haven't been reported to the CRAs yet as paid. I was responding to the question of whether or not the simulator could perform a speculation on both pay off methods :smileywink:

 


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