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Established Member
Posts: 23
Registered: ‎03-25-2014
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Credit utilization bump

[ Edited ]

Trying to bump scores large amount in short time.

 

reports show 711/708/697.   applying for mortgage.  Biggest negator per mortgage company's TU fFICO classic 04 is high revolving debt to limit ratio. Was at 85% have paid them down to 24% . Have 1 credit union CC, one Citicard, one store card. Total balance 13,000 cap 15,750. Got limits increased to total of 19,850 and paid balances down to 4700. Have the ability to possibly pay off another 2800, which would bring the total to under 10%. Currently the cards are @ 10%, 24%, 29%. Balances of 372, 1500 and 2800, 

 

question, on, should I pay the 372 and 1400 down to almost nothing and leave them at 1% each and pay the 2800 down to about 2k which would be 20%

 

or

 

should I pay evenly on all three cards so they are all equally under 10%

 

or

 

does it matter?

 

lastly, with the 85% to 24% util on three cards I've already paid! is it reasonable to assume my scroes have gone up 50+points?

 

thanks, note, report is otherwise clean. No chargeoffs, no bankruptcy, no collections, two 30 day lates from about 5 years ago. A few recent inquiries, high total loan balances,I'm a physician with a zillion dollars I student loans.

Frequent Contributor
Posts: 341
Registered: ‎09-23-2013
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Re: Credit utilization bump

In the case of getting a mortgage I would pay two smaller balances to 0, and apply the rest to large balance that should put your total UTL at 9% which is optimal for scoring.
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Established Member
Posts: 23
Registered: ‎03-25-2014
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Re: Credit utilization bump

Thanks. Do you think the +50 or maybe even 60 points to score is a reasonable expectation with a 3 card util rate decrease for 85 to 25? Perhaps 70 points of 85 to 9?

Contributor
Posts: 255
Registered: ‎08-24-2011
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Re: Credit utilization bump

I dont think a jump that big is realistic for jsut getting utilization down.

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Established Member
Posts: 23
Registered: ‎03-25-2014
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Re: Credit utilization bump

Im curious because I have read threads where one of the moderator paid is util down from 89 to 1 and his score went up 125 points. So if util is the major negator of your score, like it is mine, and your applying for a mortgage and this a mortgage fFICO calculator is being used, which it is, is this true from other peoplea experiences too. 

Contributor
Posts: 255
Registered: ‎08-24-2011
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Re: Credit utilization bump

[ Edited ]

Everyones credit profile is different and will be affect in different ways. If there is one thing Ive learned here its that the outcomes vary wildly form one person to another in reagrd to credit. Im not saying a jump that big is impossible, just seems to exception rather than the norm. Ive been wrong before and will be wrong, hopefully so in this instance. 

 

I would echo the same advice as above that if yhour going to do pay them down, pay off the 2 lwwer balances completely

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Established Member
Posts: 23
Registered: ‎03-25-2014
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Re: Credit utilization bump

Pay them to complete 0 balance, or down to 1%?

 

Contributor
Posts: 255
Registered: ‎08-24-2011
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Re: Credit utilization bump

Down to zero.  In my years of reading there is the FICO myth(or maybe not) that it looks better to have one card with a balance, than the same balance owed spread out.  i.e. if you owe 1500.00, its better to have it on 1 card than 3 different card with a balance of 500 each.

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Frequent Contributor
Posts: 341
Registered: ‎09-23-2013
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Re: Credit utilization bump

+1 exactly. and yes score bumps is always a ymmv thing. My score went up 50 points when I added positive tradelines, but someone with say a 750 credit score might see a 10 point drop for adding TLs. UTL makes up roughly 30% of your score, so it is possible but I wouldn't count on it. The only thing you can do is pay them and see, if you bought a recent score you can see what the score simulator will put you.
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Established Member
Posts: 23
Registered: ‎03-25-2014
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Re: Credit utilization bump

I was wondering about the simulators accuracy. I did buy a myFICO set of three scores last week.  682/668/706 (ex,eq,tu) according to the simulators my current drop from 85 to 24% shows a boost on eq from 668 to 718, and for tu a boost from 706 to 726-766. Averaging those it's about 50 to 60 points which is about 1 pt for each 1% drop in util for me.  If I dropped it to 9% it shows them going from 668 to 738 and 706 to a max of 786....in one month.   

 

If true that's great. Just wasn't sure about the accuracy of the simulators. And why no calculator for exp? My mortgage company will take the middle score when I run them in 60 days and I need it to be above 720.  If you see my earlier post thread I also paid off a car loan, added a car loan and another installment loan. So I'm trying to see if all this slash Ino my util plus the new installments will get me to 720 for atleast two scores.

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