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Regular Contributor
Posts: 249
Registered: ‎02-29-2008
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Simulator Suggestions...Interesting

Hi, all.
 
I was just approved for a 4K nrewards MC card from NFCU...my new best friend! I also was approved for 2 other low limit dept store cards.
 
At any rate, with the inception of these new cards my util is going from 103% to 23%.  According to the simulator I could see anywhere from a 40-60 pt hike.
 
It also suggested that by transferring my current 3 low lim cc's to the new card I could see anywhere from a 60-80 pt hike! I wasn't aware that BT's could bring such a reward.
 
I just got a 150+ hike on CRs across the board!  Could I truly potentially see another 100+ just with these two scenarios?!  Seems unreal but if that's the case then I'm doing the BT's as soon as I get my new card! 
 
Thanks for sharing. Smiley Very Happy
 
 
SerenityBound....indeed!
Super Contributor
Posts: 8,198
Registered: ‎03-25-2007
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Re: Simulator Suggestions...Interesting



SerenityBound wrote:
Hi, all.
 
I was just approved for a 4K nrewards MC card from NFCU...my new best friend! I also was approved for 2 other low limit dept store cards.
 
At any rate, with the inception of these new cards my util is going from 103% to 23%.  According to the simulator I could see anywhere from a 40-60 pt hike.
 
It also suggested that by transferring my current 3 low lim cc's to the new card I could see anywhere from a 60-80 pt hike! I wasn't aware that BT's could bring such a reward.
 
I just got a 150+ hike on CRs across the board!  Could I truly potentially see another 100+ just with these two scenarios?!  Seems unreal but if that's the case then I'm doing the BT's as soon as I get my new card! 
 
Thanks for sharing. Smiley Very Happy
 
 


I assume you will get some hits for Inqs and new credit to offset the reduced util  Smiley Sad
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
Regular Contributor
Posts: 249
Registered: ‎02-29-2008
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Re: Simulator Suggestions...Interesting



MidnightVoice wrote:

I assume you will get some hits for Inqs and new credit to offset the reduced util  Smiley Sad



URGH! No doubt MV!  I took 8 hits for the inq over the weekend incl 1 mgtg app (total 32 on EQ now - 2 of the 8 from NFCU). But it will definitely be worth it in the long run. 
SerenityBound....indeed!
Regular Contributor
Posts: 145
Registered: ‎03-27-2008
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Re: Simulator Suggestions...Interesting

I'm kind of new here, so I hope someone will correct me if I am wrong, but maybe that is because you will be spreading out your util.
 
If I understand correctly, it is not just your overall util that is taken into account, but also what % of each CL you are using.
 
As an example:
Card1 with a $1,000 limit 100% util
Card2 with a $2,000 limit 100% util
Card3 with a $15,000 limit 0% util
 
In this case your total util is $3,000/$18,000 = 16.67%
However, you also are using 100% of Cards 1 and 2 and 0% of card 3, (100*2)/300 = 66.67% average util per card
Moving $3,000 to Card3 would then be 0%, 0%, 20% = 6.67% average util per card
 
Then again, maybe I have no clue what I'm talking about and this makes no difference Smiley Happy
Super Contributor
Posts: 8,198
Registered: ‎03-25-2007
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Re: Simulator Suggestions...Interesting

You are probably right.  FICO does not like a maxed out card, and prefers the debt spread.
 
To be honest, I am not sure why, as the logical thing to do if one is going to carry a balance is to do it all on the lowest interest card.
 
But FICO sense and fiscal sense do not always agree.
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
Moderator Emeritus
Posts: 6,794
Registered: ‎09-29-2007
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Re: Simulator Suggestions...Interesting



MidnightVoice wrote:
You are probably right.  FICO does not like a maxed out card, and prefers the debt spread.
 
To be honest, I am not sure why, as the logical thing to do if one is going to carry a balance is to do it all on the lowest interest card.
 
But FICO sense and fiscal sense do not always agree.


I have also never understood the reasons behind this aspect of FICO scoring.
 
I guess we have to accept the assumption that in Fair Isaac's years of research, they have determined that individual util is a predictive factor.  They don't just make this stuff up, as much as it sometimes seems like they do. Smiley Very Happy
----------------------------
App free since 7/11/08.
TU 744 / EX 710 / EQ 694 (Starting to slip. Smiley Surprised )
Super Contributor
Posts: 8,198
Registered: ‎03-25-2007
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Re: Simulator Suggestions...Interesting



cheddar wrote:

I guess we have to accept the assumption that in Fair Isaac's years of research, they have determined that individual util is a predictive factor. 


Agreed
 


cheddar wrote:

They don't just make this stuff up, as much as it sometimes seems like they do. Smiley Very Happy


Smiley Very Happy.  Agreed

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
Regular Contributor
Posts: 249
Registered: ‎02-29-2008
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Re: Simulator Suggestions...Interesting

I  tend to agree with Gary, however i entered a hypothetical scenario with most of the bals on the other 3 going to the big card and small bals remaining and it only generated a 15-40 pt increase.  I was thinking about transferring only 2 cards and then paying down the 3rd one and the big one. 
 
But again, this was fico's suggestion lol and I still don't have full grasp of the whole scoring model yet to say "well that doesn't make much sense" lol.
SerenityBound....indeed!
Frequent Contributor
Posts: 272
Registered: ‎03-10-2008
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Re: Simulator Suggestions...Interesting

For what its worth I have noticed score increases when debt was spread more evenly among cards, and keeping overall utilz below 15-20%.   Not as much increase when utilz was between 1-15 %.
Super Contributor
Posts: 8,198
Registered: ‎03-25-2007
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Re: Simulator Suggestions...Interesting



gatoravi8tor1 wrote:
For what its worth I have noticed score increases when debt was spread more evenly among cards, and keeping overall utilz below 15-20%.   Not as much increase when utilz was between 1-15 %.


Actually I guess that kinda makes sense.  With high scores and low util, FICO likes to see half the cards with a close to zero balance.  Maybe with lower scores and high Util, it likes everything spread.
 
And it probably frightens the CCCs less as well
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

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