@Poohbear wrote:
Thanks again hauling....we have done something major, we paid all our cc down to 50% util in Nov. and plan on 25% more this month and the balances in Jan. We are also going to dispute errors on our collections. We are hopeful this will give us a decent jump in credit scores.
What was this I read that for every 10% util paid down it is an increase in 10-15 credit score points? Is this true? that would be amazing!!! Can anyone confirm this? Thanks everyone this forum is so helpful.
That's a great reduction in your util! Once you pull scores again, please post them here. We all get a nice goose to our credit batteries when we read about other people's successes. That's the great thing about util: if you have some cash, it's the fastest impact on your scores, and you can control it, unlike trying to get erroneous info off, begging for mercy, and so forth.
I don't think you're going to see a direct correlation between util drop and score points, because there are so many other factors involved in your scores, including your "score bucket", which is your credit peer group. From what I can tell, the scoring breaks come at under 5%, under 10%, under 30%, under 50%, and under (I think) 85%, which equals maxed out. So you're hitting two biggies already: under 50% with your current paydown and under 30% with the next round.
I was already at 3-4% util and paid everything off except for a $7 balance on one card, and my scores increased 7 pts - 20 pts - 2 pts. The 20 points on TU was because I had only half of all my open accounts reporting, including mortgage, student loan, and a home equity line of credit. TU LOVES it when half or fewer accounts have balances!
By the way, the operative word is "under", as in 4%, 9%, 29%, and so forth.
Nice work in bill-paying land! You have given yourselves a great Christmas present.
* 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