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How many points for PIF CC?

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Anonymous
Not applicable

How many points for PIF CC?

I have searched here on the forums but haven't found an answer to my question so I thought I would post here. I currently have a EQ score of 589 and need it to be at least 600 soon! I have a student line of credit at limit of $10K and a CC a limit of $4K. I am coming into some money on Monday and will be able to pay the CC to $0 and the SLOC to $7000. How many points do you think I'll see for this?


Message Edited by MRSTIMEBOMB on 04-02-2008 03:24 PM
Message 1 of 5
4 REPLIES 4
haulingthescoreup
Moderator Emerita

Re: How many points for PIF CC?

OK, it is just impossible to predict with this little amount of information...

So the line of credit has a $10K limit, and it's maxed out (all $10K has been pulled)? And the CC has a CL of $4K, and it's also maxed? And you have $7K to apply to your debt...

Do you know if the line of credit is reporting as revolving? (It probably is.) If so, you have two maxed out revolving accounts, and it's amazing that your scores are as good as they are.

You've proposed paying the card to 0% and the LOC to 70%. But another way of doing this is to pay $2K on the card and $5K on the LOC, bringing both of them to 50%. Normally we say that it's good to have some of your accounts at zero, but your credit is probably really "young", and I'll bet that you don't get much of a penalty. My gut feeling is that you would do better to get both down to 50%, and if you can put an extra $100 on the LOC to get it to $4,900, and an extra $40 on the CC to get it to 49%, that might be even better. But if you can get both accounts to stop being maxed out, you should pass 600 easily, unless you have some other ugliness on your reports.

Anyone else? how would you divide up this payment? And OP, please let me know if I read your post correctly. Plus, if you don't get much response on this thread, I can move it, but I think you'll start getting responses within the hour.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 2 of 5
Anonymous
Not applicable

Re: How many points for PIF CC?

Hauling, I agree - I'd pay them both down to under 50%, and then work toward PIF-ing the CC. This is assuming that these are the OP's only two TLs reporting.
Message 3 of 5
Katrina
New Member

Re: How many points for PIF CC?

My advise would be "don't do anything until you talk to your mortgage broker or loan officer."  You indicated that it needed to be 600 soon - I'm assuming that you've applied or will be applying for a loan and that you'll be coming into about $7000 soon.  Your loan officer would be the best person to ask this question to, as they know your situation and what it will take to get you approved better than anyone.  Sometimes having a specified amount of money in savings is more important thant a paid off card.
 
But to answer your question, paying off a $2000 of a $4000 credit line that is maxed will generate the most points in the pay off process.  Once your card is paid down to below 50% of the credit line the points gained by paying off the balance are minimal in comparison.  I always advise my clients who have extra money to pay off debt, to pay as many open credit lines down past the 50% mark as possible then start paying down the highest interest rate loans next.
 
Hope this helps! 
Katrina
Message 4 of 5
Anonymous
Not applicable

Re: How many points for PIF CC?

Because you didn't say what your UTIL is it is hard to answer.  CC UTIL and payment count more toward scores then any other type of credit. Pay the CC to Bal $0    The student loan only counts 10% of you scores.
For a mortgage the amount that you pay each month on the SL will be counted in D/R.
 
Remember the biggest count toward scores are history & CCs
 
 


Message Edited by HappyDays on 04-04-2008 12:33 PM
Message 5 of 5
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