Credit utilization bump

[DVH1980]

Im wondering if the addition of new credit(your most recent installment loan) was better or worse for your score. While having varied lines of credit sometimes adds to your score, the hit to your AAoA may offset any gain and possibly drop it. 

[denver133]

I am in the same boat as you with regards to waiting on a score to show a paid CC account.  

From my understanding about UTI, there are two factors.  

1.  The total UTI against all your credit cards.  So if you have a balance of $13,000 against a total amount of $15,000 available credit between 3 cards, your scores will be affected.  

2.  The total UTI against each card.  So if you have 3 cards each with $5,000 CL, and you have 2 of those three reporting $0 and the 3rd card reporting 4800, you will still get a ding because you are using a large amount on that 3rd card.   However if you have that 3rd card reporting 9% or less, you will see the max amount as long as the other two report a zero balance.  

My report will update on the 30th or 31st.  My scores are expected to be as follows based on the simulator.  This is paying off a 75% balance on 1 card as my other card already reported the $0 balance.  I have always seen a mid score on the simulator or an average between the two scores.   

EQ - 615 up to 635 to 695  Average is 665

TU - 609 up to 619 to 659   Average is 639 

I will let you know what my scores end up as on Monday when they report.  

[Bostonredsox]

I am expecting the new installlament loans to drip my score a bit by adding new debt and decreasing AAoA. I just want to know if the drop in util from 85 to 9 increases the score by more than the new loans drop it, which everyone says it will....but by how much. The simulators are showing me basically 1 point boost to credit for every 1% drop in util because high util is the biggest negative inflection on my reports. So does going from a 13,3000 balance on a 15,750 max limit to a 1800 balance on 19,850, and all 2,000 is on a 10,000 card, the 6,100 and 3,750 cards will be at 0 balance... Yielding a total util of 9%.... Increase score by what simulator says it will...60-70 points.

[DVH1980]

Well.....I guess we're just at a wait and see point. Sounds like most of the credit game in a nutshell.

[Bostonredsox]

I'll be interested to see your score change. I'm really hoping my payments slicing down the util will get me 2/3 scores over 720

[Bostonredsox]

Ok not trying to beat a dead horse but....

i borrowed 2k from my dad, coupled with another 1800 I can afford to spend I can bring my total CC debt down to 950/19,850. (5% util) from 13,300/15750. (85%util).

current balances ard 392/3,750 store card, 1510/6100 Citicard, 2900/10.000 CU card. You had said pay off too smaller cards to 0 balance and 10k card to 10%. But

the two lower cards are the only two that report to exp. for some reason. my cu which has the 10k card and a private loan of mine don't report to exp, neither is on the report and ice had them a long times soooooo.....if I pay off both lower cards to 0 my experian util will be 0%.. That's bad right? 

I paid off the 392 already it's 0 balance.  So with another 3300 to use and balances of 2900 and 1400, should I pay off the 2,900 to 0 and bring the 1510 to 1010? That gives me balances of 0, 0 and 1,010 on 19850 for a total util of 5%, but a individual card util on the one of 16%, for my eq and tu reports.

For my exp report it would yield one card with no balance and one with a 16% balance for a total util of 10.2%

or should I pay the two larger cards so that both are are under 10% that way all three reports will have total utils of <10%, no individual card over 10%, but only one not two cards with 0 balance.  Thanks guys.

[Bostonredsox]

I just realized I totally forgot something....

i have about 480k in student loan debt, 30k private, in repayment, 450k federal all in foreberance/deferrment.  I just consolidated all of the federal loans into one payment which will enter payment in April. Now the payment on the 450k is only $200 as I'm in IBR and still a resident with a lot of kids.

ive read consolidating this debt usually helps credit scores because the previous 21 installment loans that made up the 450k will now all show as paid and there will be one active loan with a low payment.  But does my aaoa take a huge hit by all of those loans being paid and thus closed? And the new consolidated loan is a new installment loan so that's probable a negator as well.

thoughts?

[Bostonredsox]

FIRST UPDATE

picked up the myfico EQ score alert today, 7 days afteri originally pulled myficos.  originals were EX/EQ/TU 682/668/706

only baddys are 2 thirty day lates from 4.5 and 6 years ago (probably having no affect right?) on all three accounts and one 30 day late of from 1 year, 11 months ago on only exp (my wifes acct turns out i was a cosigner).

Starting util was 85%.....$439/750.....$3,555/4,000.....$9,339/10,000

I have increased the 750 to a cap of 3,750 with no HP...and paid the balance to zero.  I have paid the 9,339 to $1,400 AND increased cap to 15,000 with no HP.  I have paid the $3,555 to $1510 AND increased cap to 6,100 with no HP.  

Have also added a car loan for 40k, paid off a car loan of 3k, and added a personal installment of 50k. consolidated my 20+ student loans to a new loan (all federal no HP)

AS OF TODAY....only things to report to EQ is the 3,555-->1,510.  the other two cards have not reported balance paydown or limit increases and the one card that has reported the balance paydown has not reported the limit increase (i only did that3 days ago). 

The 50k loan and the paid off auto loan have also reported.

NET change 668--->676.  (+8pts).   this is VERY encouraging to me.  util went from 85%-->72%.  I figured that gained me 1:1 based on other threads, so a 13 point boost.  I then took a 5pt hit for the new installment loan reporting (its first payment though paid has not reported yet).

this is making me feel better that i will take another 5-10 point hit when the new auto loan hits as score simulator is projecting...but I wil also gain the 1:1  60point boost when my cards report the 72%-->8% util drop!.....will keep you posted. (if anyone cares lol)  3,750 card is supposed to report on 4th which will (without other cards reporting) by itself drop util from 72%-->58%....HOPING TO SEE A 14 POINT BOOST FROM THAT.

[Bostonredsox]

SECOND UPDATE

gecrb card reported today with new balance $439->$0 and new cap limit of $750-->3,750. 

Overall, util dropped from 72% to 58%.

score bump today of 13pts. Woot!

looks like it's pretty much 1% util drop = 1pt boost for me with util being my biggest negative.

waiting for the big card to report, 9,339/10,000-->1,330/15,000. And then first card to update again With no cap limit. Overall should drop to 0%, 9%, 8%, overall of 7%. Hoping for another 50 points in boosts.

[AbsentMindedProfessor]

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@Bostonredsox wrote:

SECOND UPDATE

gecrb card reported today with new balance $439->$0 and new cap limit of $750-->3,750. 

Overall, util dropped from 72% to 58%.

score bump today of 13pts. Woot!

looks like it's pretty much 1% util drop = 1pt boost for me with util being my biggest negative.

waiting for the big card to report, 9,339/10,000-->1,330/15,000. And then first card to update again With no cap limit. Overall should drop to 0%, 9%, 8%, overall of 7%. Hoping for another 50 points in boosts.

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Very interesting to see these incremental, controlled changes.  It's basically a mad scientist in the FICO lab...

EDIT: by pure coincidence, I got a SW alert due to a 1 point drop that came from precisely a 1% increase in utilization.