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Frequent Contributor
Posts: 490
Registered: ‎02-07-2010
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High Utilization on Some Cards and Mortgage

I am currently in the process of applying for a mortgage. We are getting our house built through Ryan Homes. I have about 3 cards that are considered "maxed out". I wanted to know if I pay these down to about 70-80% utilization, would I see a significant increase in score. I will also be paying off a installment loan with a $115 payment within the next 60 days. My mid score is currently a 634. I am attempting to get to 650-670 range by March. Any input is greatly appreciated.


Starting Score:TransUnion: 698 (12 FEB 2010), Equifax: 674 (12 FEB 2010)
Current Score (Lender Pulled):TransUnion: 635 (15 APR 2015), Equifax: 685 (15 APR 2015), Experian: 662 (15 APR 2015)
Goal Score:All scores All scores at least 680+ by Jan 2016!!

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Regular Contributor
Posts: 230
Registered: ‎09-22-2012
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Re: High Utilization on Some Cards and Mortgage

I got about 35 points going from 100% to 77%. (3700 total to about 2900). 


Starting Score: EQ 416 TU 498 EX 468 Lender Fico's July 2012
Current Score: EQ 548 (Myfico) TU 655 (Walmart) CK 672 EX?? CS 642
Goal Score: For now: 640s


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Regular Contributor
Posts: 230
Registered: ‎09-22-2012
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Re: High Utilization on Some Cards and Mortgage

The installment loan might hurt you when you pay it off, cause if its been being paid for a long time, its helping your AAoA. I lost a few when we paid off a car loan that we had for 4+ years. If you can pull credit for approval prior to that showing closed I would do so. 


Starting Score: EQ 416 TU 498 EX 468 Lender Fico's July 2012
Current Score: EQ 548 (Myfico) TU 655 (Walmart) CK 672 EX?? CS 642
Goal Score: For now: 640s


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Frequent Contributor
Posts: 490
Registered: ‎02-07-2010
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Re: High Utilization on Some Cards and Mortgage

I have only been paying on this installment loan for about 6 months. Its for a couch. It will help improve my DTI ratio as well.


Starting Score:TransUnion: 698 (12 FEB 2010), Equifax: 674 (12 FEB 2010)
Current Score (Lender Pulled):TransUnion: 635 (15 APR 2015), Equifax: 685 (15 APR 2015), Experian: 662 (15 APR 2015)
Goal Score:All scores All scores at least 680+ by Jan 2016!!

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Regular Contributor
Posts: 199
Registered: ‎05-23-2007
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Re: High Utilization on Some Cards and Mortgage

If that installment loan is your only one, paying it off can adversely impact your score (credit mix purposes). To get points quick, paying down your credit cards will do the trick. Although you'd probably need to pay them down closer to 50% in order to see a sizeable score bump.

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Starting Score - 575 (4/10)
Current Score - EQ - 750, TU - 752, EX - 728 11/4/12

Current Cards:
AMEX SPG ($7.5k), Amazon.com Visa ($3k), Discover More ($2k) all since 11/4/12

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Frequent Contributor
Posts: 490
Registered: ‎02-07-2010
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Re: High Utilization on Some Cards and Mortgage

I have 4 installment loans total. 2 personal loans 2 auto


Starting Score:TransUnion: 698 (12 FEB 2010), Equifax: 674 (12 FEB 2010)
Current Score (Lender Pulled):TransUnion: 635 (15 APR 2015), Equifax: 685 (15 APR 2015), Experian: 662 (15 APR 2015)
Goal Score:All scores All scores at least 680+ by Jan 2016!!

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Regular Contributor
Posts: 199
Registered: ‎05-23-2007
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Re: High Utilization on Some Cards and Mortgage

In this case, paying it off probably won't yield much of a score increase. I would go after those credit cards with everything I've got. I know it's probably tough as you're trying to save for the home as well, but getting your utilization down will give you a nice boost. 

-------------------------------------------------------------------------------------------------
Starting Score - 575 (4/10)
Current Score - EQ - 750, TU - 752, EX - 728 11/4/12

Current Cards:
AMEX SPG ($7.5k), Amazon.com Visa ($3k), Discover More ($2k) all since 11/4/12

Fighting the good fight!
Valued Contributor
Posts: 1,115
Registered: ‎10-31-2011
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Re: High Utilization on Some Cards and Mortgage


jandj80 wrote:

The installment loan might hurt you when you pay it off, cause if its been being paid for a long time, its helping your AAoA. I lost a few when we paid off a car loan that we had for 4+ years. If you can pull credit for approval prior to that showing closed I would do so. 


This is incorrect. A positive account will stay on your CRAs for at least 10 years after it is closed.

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Valued Contributor
Posts: 1,115
Registered: ‎10-31-2011
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Re: High Utilization on Some Cards and Mortgage


getmycreditright wrote:

If that installment loan is your only one, paying it off can adversely impact your score (credit mix purposes). To get points quick, paying down your credit cards will do the trick. Although you'd probably need to pay them down closer to 50% in order to see a sizeable score bump.


This is also incorrect....having a pd/closed installment is the same as an open installment for credit mix purposes.

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Valued Contributor
Posts: 1,115
Registered: ‎10-31-2011
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Re: High Utilization on Some Cards and Mortgage

best bet for a score boost is to drop to below 35% and even more so at 10%

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