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$68K. It's been fully utilized since the day we got it more than five years ago. It is definitely being listed as a revolving with experian. Is that something I can dispute with the bureau?
Is the revolving mention provided by a lender on a lender's report or is it through some other service? There are some CMSs out there that do mis-label. I'm fairly confident that a $68k CL for a HELOC is scored as an installment. I'll double check though.
Really not sure -- it's just on the report, listed as a revolving. If this is a mistake, it would be a pretty big whopper, no?
@Anonymous wrote:Really not sure -- it's just on the report, listed as a revolving. If this is a mistake, it would be a pretty big whopper, no?
Checked my notes and for sure, it isn't scored as a revolving account due to the limit. I think the thresholds are a FICO mystery though. But definitely $68k is beyond that. Even if it says revolving on the report, FICO ignores that and scores as installment.
Thanks everyone for the great advice.
I am meeting with my bank today to discuss a debt consolidation loan. They said that they would pay off my credit cards directly and then issue me an INSTALLMENT loan. They thought it was possible because I have a very low debt to income ratio, even if my credit score is messed up. I will report back. After seeing that thread yesterday, I think this is the only way to raise my score dramatically in a month.
Thanks again!
@rckstrscott wrote:Immediate effect is realitve, but yeah, dropping UTIL by 50 percent will help a lot. FICO doesn't like high util, but it especially doesn't like high util near 100%
You score will be reflective as soon as the cards report. I just did something similar, I went from 79 percent util to 9 percent and I got almost 80 points. I don't think you will get 80 points, but you should get substantial points.
Do you have any low limit cards you can just pay down to zero? That will help get a few more as well, the more cards at or near 0 looks better in the eyes of the FICO scoring model. Even if you are at 50, if 3 of the cards at at zero, it will give you a few more points than if all the cards were at 50 percent.
What is really killing you are those lates, are they 30 day or greater? The futher you move away from them, the better off you will be. Keep in mind almost all lenders will want a clean payment history of a year, so if its happened in the last couple months, you may want to wait 6 months anyway.
-scott
I have a total of 5 CC's, 3 of which are paid down to $0 and 2 with balances on them (1st-$1636/$3000) & (2nd - $2888/$3300). I have about $4300 to use to pay the last 2 down but wonder which would give me the best point value.
Should I pay the 1st one completely off leaving me with 4 paid and $224 balance on the last one?
Or should I equally pay them both down below 9%? Just wondered which would give me the most points. TIA!
@RW771 wrote:
@rckstrscott wrote:Immediate effect is realitve, but yeah, dropping UTIL by 50 percent will help a lot. FICO doesn't like high util, but it especially doesn't like high util near 100%
You score will be reflective as soon as the cards report. I just did something similar, I went from 79 percent util to 9 percent and I got almost 80 points. I don't think you will get 80 points, but you should get substantial points.
Do you have any low limit cards you can just pay down to zero? That will help get a few more as well, the more cards at or near 0 looks better in the eyes of the FICO scoring model. Even if you are at 50, if 3 of the cards at at zero, it will give you a few more points than if all the cards were at 50 percent.
What is really killing you are those lates, are they 30 day or greater? The futher you move away from them, the better off you will be. Keep in mind almost all lenders will want a clean payment history of a year, so if its happened in the last couple months, you may want to wait 6 months anyway.
-scott
I have a total of 5 CC's, 3 of which are paid down to $0 and 2 with balances on them (1st-$1636/$3000) & (2nd - $2888/$3300). I have about $4300 to use to pay the last 2 down but wonder which would give me the best point value.
Should I pay the 1st one completely off leaving me with 4 paid and $224 balance on the last one?
Or should I equally pay them both down below 9%? Just wondered which would give me the most points. TIA!
Most people who have tried indicate paying 4 off completely and leaving a 9 percent or lower balance on the 5th will give you the most points.. but its not a huge difference...
-scott
2% Utilization is the key. Keep all cards at this to have most effect on Credit File.
@Anonymous wrote:2% Utilization is the key. Keep all cards at this to have most effect on Credit File.
Everyone's situation is different and there is no one size fits all approach to this but what seems to work well for most people is to have only one of their cards report a small (<9% of it's credit limit) balance each month and then pay in full before the due date. You can use it as much as you want during the month but what's important is the reported balance because for most cards whatever is reported on the monthly statement is what is used to calculate utilization for the month.
You might have to play around with the percentages for a few months to see what works best for you. Some people say that 1-3% utilization helps the most. For others it might be 5-9%. As I said it's not one size fits all.
On any other cards always try and have them report a zero balance each month. That doesn't mean you can't use them just make sure that the desired zero balance on these accounts is achieved several days before their statements post.
Along with individual and overall utilization, FICO also scores the number of all types of accounts reporting a balance.at any one time Making sure less than half of all your accounts report a balance helps most people.
Now this approach really isn't necessary if you're not looking to apply for any credit in the near future or unless you are trying to tweak your score for maximum effect but some folks do this as a hobby just to see how high they can get their score.