I was just playing with the FICO Score Simulator. My Equifax score is currently 734. I simulated my "best action" and was shown a range between 754-794 for paying down my revolving credit balance by 90-100% over the next 24 months. Then I plugged in a payment for the full amount of my revolving credit balance and was shown a range of 734-754. Weird. Is this thing just really not worth much or am I missing something?
Starting Score: 732 (EQ)
Too many variables is a good point. It just seems odd to me that manually inputting the "best action" results in a drastically different output, you know? I was actually surprised that the "best action" had to do with my utilization in the first place, as my utilization is already pretty low. By the way, I'm not sure what "chase your balance" means?
@Anonymous wrote:Too many variables to make a more accurate prediction. For instance one of your creditors could decide to chase your balance and thus make it appear your util or available credit is still low. Also there is the fact that the higher your score is the harder it becomes to get more points. I have read about people hitting 800 in a few years and then spending a few more years to gain a mere 10 more pts. It is like losing weight, the closer you get to your goal, the harder it gets.
Wow. I had no idea that happened. That's craptacular behavior.
@Scamp wrote:
@lolabelle wrote:Too many variables is a good point. It just seems odd to me that manually inputting the "best action" results in a drastically different output, you know? I was actually surprised that the "best action" had to do with my utilization in the first place, as my utilization is already pretty low. By the way, I'm not sure what "chase your balance" means?
@Anonymous wrote:Too many variables to make a more accurate prediction. For instance one of your creditors could decide to chase your balance and thus make it appear your util or available credit is still low. Also there is the fact that the higher your score is the harder it becomes to get more points. I have read about people hitting 800 in a few years and then spending a few more years to gain a mere 10 more pts. It is like losing weight, the closer you get to your goal, the harder it gets.
Chasing the balance is what it's called when creditors keep lowering your credit limit to just above your current balance, every time you make a payment.
No, I have nothing bad on there. 8% utilization at the time of the score pull, and slightly under 6 years AAoA.
That's what was confusing about it, though - when I simulated paying it down to 0-1% utilization, I had the lower range. When I simulate paying the same amount over 2 years, I get the higher range. I always pay everything on time anyway, though, so it's puzzling how paying down my utilization over time would be a factor that raises my score significantly when paying my utilization down the same amount in a lump sum doesn't. The only thing that makes a little sense is that, assuming no new credit, my AAoA will be better in 2 years. But it didn't seem to be making that point. Anyway, not a big deal - but curious. I just paid off 50% of my utilization and am going to start score tracking after those cards report, so it'll be interesting to see what actually happens!
@Anonymous wrote:Well that is the reason why... Your util is already so low that eliminating it will not give you much of a boost. If you simulate making payments on time for 2 years I bet you get the same result.