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Established Contributor
Posts: 858
Registered: ‎06-26-2007
0

Is this really a good idea?

I was on the TU website looking at my scores and report and I went into the fico simulator and it suggested paying off 90% of my debt over the next 24 months?  Why?  Wouldn't I be better benefited if I pay my utilization down every month until I get it down to 1-9%?
Super Contributor
Posts: 8,198
Registered: ‎03-25-2007
0

Re: Is this really a good idea?

This is the time factor.  If you simulate paying off over 24 months you get a bigger score jump than paying off all at once.  This is because the former includeds another two years of (assumed) perfect payment history.
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
Established Contributor
Posts: 858
Registered: ‎06-26-2007
0

Re: Is this really a good idea?

So what if I have some low balances that could be paid off in say a month.  Would I get points for that?  I don't want to continue to pay interest on a small balance if I don't have to.  Right?
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Established Contributor
Posts: 578
Registered: ‎06-18-2007
0

Re: Is this really a good idea?

Smiley MadIt told me the same thing.  Apparently I have to wait 2 years to join the 700 club...........darn it!!
By all means please, pay them down if you can, now. Yes, you'll get your utilization points now.  But, your aging points will come over time.  At least that's how I interpret it.
 
And yes, do pay all bills on timeSmiley Wink.

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