$4000 pd and NO movement????????

[Anonymous]

Hey all - I am pretty new here - although quick to admit I'm a Ficoholic! I paid off $4000 worth of debt in July and still no change reported from Score Watch. Each week I get an email that says no change! BOOHOO! On the other hand, my hubby's score has gone up 6 pts since then and he was already over my goal of 700 - a little envious here, yes although happy his has increased! We are trying to refi the house and to get the rate we want (and go to a 20 yr instead of a 30 year) but both of our scores have to be over 700 to qualify! I was at 698 when our loan officer pulled mine originally, but because she pulled it, it fell to 684 - dang! So, I paid down the debt $4000 by selling some gold I had - and still no movement on mine! What gives?

[suzook1]

hi there. we need a little more info. What exactly did you pay down with the $4000. Credit card debt, revolving? it all matters about your utilization. So lets say you paid 4k in cc debt but still have a high ult, this may be why your scores havent moved up.

[Anonymous]

Thanks, I paid off two credit cards and paid two others down to about 30% util from about 80%. I thought this would do something!

[suzook1]

do you know your total UTL at this point? I know they suggest UTL under 9% total to see any real movement on scores. But trust me I know your frustration when you pay down debt that at least a few points should shake out. Keep paying those down and when they report I bet you see some movement. Heck even if you have to beg, borrow or steal, paying that down will help you get that mortgage you want which will save you a LOT more money in the long run

good luck !!!!!!!!!!!

[Anonymous]

Not sure what my total util is now - but will keep paying down as I can - and hopefully will see some movement soon. What I can't understand is why my hubby's moved and mine didn't when we are both on the accts that were paid off/down! Confusing!

[chasmith]

Scores are impacted by several factors with respect to revolving (credit card) debt.  You need to consider your total utilization, and also utilization on each account.  It seems that to get the highest score on revolving debt you need to have total utilization "under 10%" or "under 9%", opinions vary.  But you also need each card to have same "under 10%" or "under 9%" status.  Also, more than half (half plus one account) should be zero balance, but at least one account should report with a balance.

Many of us don't have the money to achieve this ideal set of goals.  Until you get there, look at utilization on each card and be sure you don't have one sitting there with high utilization.  Concentrate on paying that one down, try to have your cards individually stay around your total utilization.  One card with a small limit (say a $500 limit, $450 balance, or 90% utilization) can really have an effect as you're trying to improve your score.

Also, be sure the accounts you're paying down are all reporting their limits.  A "signature" or premium card sometimes doesn't report a limit and can complicate utilization.

[Anonymous]

Thanks so much - I do have a credit line that is still very high util. from moving two years ago and adding on to the house we purchased - as well as gutting it inside with two Lowes cards. Pd one of those off - but the other is still about 90% util. Unfortunately, I pd the other debts before knowing about MyFico - the loan officer at the bank told me to pay as many debts down to under half of avail. balance that we could and that should take care of getting us over the 700 score. She didn't say that they needed to be at below 10% which I am seeing here - just under 50% - so that's what we did. Live and learn! I guess what I'm confused about is why would my hubby's go up 6 pts yet mine didn't move????

[haulingthescoreup]

It depends on what's on your individual reports.

When you look at your FICO score reports, check screen two: what are the negative factors, listed over on the left? These are what are affecting your scores, with the first-listed score having the most impact. If high util is first or second, a big paydown should help. If it's lower down, or not listed, you won't see that much of an impact. Also, make sure that the new balances are showing on the new reports, if you pull one.

If you have other negatives showing, like recent late payments, you might have to wait a while before seeing much benefit from balance paydowns.

Just IMO: even when there is little or no score change from paying down your CC's, it's one of the best things that you can do for yourself. Congrats on knocking down the balances!

[Anonymous]

Just to be sure, the $4k you paid was not to any sort of collection account right?  The $4k went to active, in good standing accounts?

[Anonymous]

Hi again - just want to respond on the debts I paid down - none were deliq. - have not had any ever. My reasons for lower score says because my util. is too high - too many accts with balances so I would have thought the $4000 would have contributed to helping my score. Who knows!! Thanks for responding - it's nice to know the people here care enough to comment!!