Lower Util % = Lower Score?!!

[MBOhio2]

Everyone always says that the Score Simulator here on myfico (for TU and EQ) are super accurate, but Score simulator is showing something weird for me so I'm hoping someone can help explain.

On TU, I have a utilization of 65%, which is a balance of $22,849 on $35,050. I have already paid off my last 2 credit cards, which had balances totalling $3,665 and which will make my util % go down to 54% (all credit cards now have $0 balances!). In order to boost my score more, I was planning to pay $2,350 toward my last revolving account (single LOC), which would put me at an overall util of 49%.

HOWEVER, Score Simulator is telling that paying down $3,665 to have a util of 54% will give me a higher score range (608-648), than paying down $6,015 to have a util of 49% (598-638). How is this possible??? Is this just an example of Score Simulator being wacky or there a reason why my score would actually be lower paying down less??

[Anonymous]

Which option are you selecting? "$X every month for Y months," or pay down $X of your total revolving debt?

[MBOhio2]

I am selecting "$X every month for Y months" and in both options, I am putting "1 month" and only the amount to pay down is different. Like I said, paying off less is giving me a higher score range.

[Anonymous]

Hmmmm... Curios, indeed!

Perhaps, the higher payment (ultimately resulting in lower revolving utilization) crosses a debt threshold to rebucket you?

Or, perhaps it's time for the the little old guy inside the simulator to retire... He's starting to miscalculate!

[MBOhio2]

I'm going to chalk it up to error because making the larger payment, according to Score Simulator (and common sense) does provide for an additional score increase for my EQ score so I'm just going to pay it and cross my fingers that it doesn't actually hurt my TU to pay more!! That's the tricky thing... EQ says it will increase my score, but TU says it will decrease, ugh!

[AndySoCal]

The link below is to article about home equity line of credit. It may maybe not quite the same as what you have. But I think it gives a little insight on how FICO treats a revolivng line of credit type account. My impression was it is not treated the same as credit card.

http://www.bankrate.com/finance/savings/heloc-activity-may-affect-fico-score.aspx

[MBOhio2]

That article is misleading and missing a lot of important information. A line of credit, including a HELOC, as long as it's below a certain amount ($30K for one CRA and $50K for another) is treatly EXACTLY like a CC.

I have a BOA consumer line of credit with an original limit of $29,200 and a current balance of $19K... it affects my utilization % exactly as if it were a CC. Right now, I have 4 CCs, all of which have a $0 balances and then the LOC which has the $19K balance. My current utilization % according to all 3 CRAs is 54%, which is the $19K divided by the limits of the 4 CCs + the $29,200 LOC limit. As a result, this LOC is seriously damaging my credit scores because it looks like I have a very high utilization %.

Nevermind that the LOC is actually closed so it can't even be used and doesn't represent a risk of me incurring more debt!

[MBOhio2]

One of the last 2 CCs finally reported a $0 balance (still waiting onthe other, ugh) and I pulled a new TU credit report. The Score Simulator seems to have regained its marbles!

Now it says that if I pay the extra $2350, my score will go up, not down, so I just paid it