CC Balance reduction

[sok454]

This month I paid off aproximately 20k of my balances of 25k in cc debt.   Any guesses on what sort of score increase I shoul see?  Secondly would by score go up for remvoving an outstanding mortgage?   My name is still on my ex-wifes mortgage and she is about to refinance so my name will come off of it. 

[llecs]

Congrats on the debt paydown! What is your before and after CC util?

On the mortgage, will your AAoA go up or down? Was this your oldest loan?

[Jlu]

Is it $20k in open revolving lines or are these closed CO's or CA's? If you paid $20k in open revolving lines on $25k worth of revolving credit your scores could go up huge.

[sok454]

I paid off 15k between cit and chase card and then my exwife paid off a old joint acct. of 5k.   She still has 5k to pay off that i'm on and I have about 2000 left of my own.  I am going from about 95% utilization to about 10%.  

Not sure what you were asking about the mortgage.  

[sok454]

The mortgage was only 6 y ears old.   Not sure what the AAofA was you were asking.

[llecs]

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@sok454 wrote:

The mortgage was only 6 y ears old.   Not sure what the AAofA was you were asking.

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AAoA is the average age of all of your OC accounts. It's a significant scoring component. It's calculated by adding up the age of your OC accounts (the same accounts on your Accounts page of your FICO report). You average them and then round down to the nearest whole number. That's your AAoA. So, if the mortgage were 20 years old, for example, and you had an AAoA of 4 years, then there's a potential hit on your AAoA if it drops after losing the mortgage. Removing a 6 year old mortgage won't have the same impact of a 20 in that example, but worth calculating the before and after. If AAoA drops, there's a potential for a score loss if the mortgage is removed. YOu can cheat and sometimes find AAoA on your FICO report.

[Jlu]

Reducing your utilization that drastically will have an equally drastic effect on your score. There is no telling how much of an increase you can expect but keep in mind that utilization is about 1/3 of your overall score from a FICO perspective.

[sok454]

My avg age is greater than the loan period so it should be flat or could help it out a small amt.   Thank you for the information!

[Crashem]

What score do you have now?

[sok454]

596 is what is showing here.