I recently paid my revolving debt to credit ratio down from 81% to 15%, and was waiting for the new balances to get to my credit reports. A few days after making the last payment, and way before anything could have been reported, ScoreWatch sent me an email telling me my score had gone from 638 to 658.
I went to the simulator to see what would happen after all the new balances got reported, and it said my score would go to between 728 and 768. I have heard from numerous sources that once the FICO gets above 720, one will usually be approved for anything he applies for, so getting to at least 728 is very important to me.
However, I recently got a $2500 signature loan from my credit union, and Equifax just told me it has gotten on my report. Is this going to hurt my score? I know opening a new revolving account will usually result in a score drop. Will a new installment account do the same thing?
Also, I just paid off another installment loan, from a consumer finance company, a couple of months early, and that should be getting reported any day now. I have, in effect, traded an old consumer finance loan for a new credit union loan, with about $20 less for a monthly payment on the new loan. Will there be either a net gain or a net loss in my score after both of these changes get reported?