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Established Member
Posts: 41
Registered: ‎01-01-2014
0

Fico score boost?

Hello, I'm new to the forums. Been lurking a while lol.

So my question is as follows. I would like to apply for a loan in the near future, 2 months or so and want to know what would be the best plan of action to raise my score. My card balances/limits are as follows;
1- 450/500
2- 133/300
3- 350/500
4- 2400/2500

I am planning on paying them all off within the next 3 months, but I would like to know paying what where would give the most points per dollar so to say.. Would it be better to pay off te low limits first then do the higher to see a boost or what? Thanks.
Moderator Emeritus
Posts: 12,937
Registered: ‎12-30-2011
0

Re: Fico score boost?

Pay down the 2400/2500 by at least 200
Subsequently pay off the 450/133/other small one all to zero
Then start working on the large balance again

Would be my pure FICO recommendation.
Starting Score: EQ 04 561, TU 98 567, EX 98 599 (12/30/11)
Current Score: EQ 04 700, TU 04 731, EX 98 725 (05/24/15)
Goal Score: 700 on EQ 04 (01/01/16)


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Established Member
Posts: 41
Registered: ‎01-01-2014
0

Re: Fico score boost?

What would be the reason for paying 200 on the 2400 balance? Does that bring it down to a certain %? It would bring my card to 88% but I'd be about 58% overall.
Established Member
Posts: 41
Registered: ‎01-01-2014
0

Re: Fico score boost?

Also once it is all paid off..would it be beat to have all cards but the 2500 limit report a balance only? And at what % should I keep it at?
Established Member
Posts: 41
Registered: ‎01-01-2014
0

Re: Fico score boost?

All cards to report 0 but the 2500** sorry, damn iPhone lol.
Moderator Emeritus
Posts: 12,937
Registered: ‎12-30-2011
0

Re: Fico score boost?

90% is a threshold for a maxxed out card which is an additional FICO penalty.

Starting Score: EQ 04 561, TU 98 567, EX 98 599 (12/30/11)
Current Score: EQ 04 700, TU 04 731, EX 98 725 (05/24/15)
Goal Score: 700 on EQ 04 (01/01/16)


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Valued Contributor
Posts: 2,669
Registered: ‎06-05-2008
0

Re: Fico score boost?

+1 on the paydown. Utilization can be a real score killer.  You want the number of cards with a balance to be 1, preferably your highest limit card.  And you want that balance to be between 3 to 9 percent of your total credit limits across all cards.

 

This nifty graph from another board shows the effect of utilization across a bunch of different profiles.

 

 

3-26-15: FICO EXP: 828 - EQU:820 - TRAN: 828 - AVG: 825 +275 points from JUN 2008 - MY CREDIT JOURNAL

Established Member
Posts: 41
Registered: ‎01-01-2014
0

Re: Fico score boost?

Perfect, thanks! Any idea what, roughly when I get to that point, my score could be. I'm currently at 610 with the cards reporting those numbers. Once they're all down to 0 balance, and my higher limit reporting a low %?
Valued Contributor
Posts: 1,794
Registered: ‎07-01-2010
0

Re: Fico score boost?

If you're at 610, and fix your utilization issues, you should see a sizeable boost.

 

But I assume there are also derogatories or something else going on, and utilization alone won't do it.

 

Utilization and payment history are each around 1/3 of the total score.

 

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