Reply
Established Contributor
myhearts07
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
MidnightVoice
Posts: 8,157
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
myhearts07
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?
Established Contributor
trinigal
Posts: 578
Registered: ‎06-18-2007
0

Re: Is this really a good idea?

:smileymad:It 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 time:smileywink:.

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}