Net effect on FICO?

[hombre14]

Background:  AAoA 11.6 yrs, 2 hard inq's, no lates/derogs, 20k balances-  ~100k overall credit available.    Scores via Credit Karma-  TU 753, EQ 747

I won't be able to fully pay off the 20k debt for approximately 12-18 months.   My question-  in the meantime, in terms of FICO score am I better to spread the debt around on my cards, or am I better having 4 cards report zero balances, and one card having most/all the balance?    In other words, which is better:

Scenario A

B of A 3k balance, 15k limit-   20% util

Discover 3k balance, 16.5k limit- 18% util

NuVision Credit union-  4k bal, 20k limit-  20% util

BarclayVisa-   4k bal, 17,5k limit-   23% util

Citibank Aadvantage-  6k bal, 31k limit-  19% util

Scenario B

B of A   zero bal

Discover zero

NuVision zero

Barclay zero

Citibank-  20k balance, 31k limit-  64% util

Obviously, overall utilization (~20%) is the same in both scenarios... just wondering which Scenario would likely produce the higher current FICO score (and why)?

[CH-7-Mission-Accomplished]

Definitely plan B.  FICO likes to see only one card with a balance reporting.  As long as you are not "maxed out" on a single card, meaning 90% or more, you are better off putting it all on one card.

People often have lots of cards with zero balance and one with a high balance becuase they use balance 0% balance transfers.  They don't take a hit for anything more than the overall utilization percentage.

[jamie123]

---

@hombre14 wrote:

Background:  AAoA 11.6 yrs, 2 hard inq's, no lates/derogs, 20k balances-  ~100k overall credit available.    Scores via Credit Karma-  TU 753, EQ 747

I won't be able to fully pay off the 20k debt for approximately 12-18 months.   My question-  in the meantime, in terms of FICO score am I better to spread the debt around on my cards, or am I better having 4 cards report zero balances, and one card having most/all the balance?    In other words, which is better:

Scenario A

B of A 3k balance, 15k limit-   20% util

Discover 3k balance, 16.5k limit- 18% util

NuVision Credit union-  4k bal, 20k limit-  20% util

BarclayVisa-   4k bal, 17,5k limit-   23% util

Citibank Aadvantage-  6k bal, 31k limit-  19% util

Scenario B

B of A   zero bal

Discover zero

NuVision zero

Barclay zero

Citibank-  20k balance, 31k limit-  64% util

Obviously, overall utilization (~20%) is the same in both scenarios... just wondering which Scenario would likely produce the higher current FICO score (and why)?

---

Scenario B would definitely get you a higher FICO score but you are talking about a difference of 10 to 14 points at most. Your scores are high enough to get you almost any credit card that you desire. Why the concern to raise your scores?

If I were you this is how I would raise my scores:

1. Apply for an AMEX BCE and go for the 3X CLI after 60 days. This would increase your available credit and lower your UTI in one fell swoop that doesn't cost you anything except a HP.

2.Pick one card, perhaps the card with the highest CL (CitiBank Aadvantage) to use as your go to everyday card. Put all the other cards in your sock drawer. Make sure that you pay down your go to everyday card so the reported balances show about a $100 month to month decline and use the rest of your available funds to start paying off your other cards.

3.Pay $20 more than the minimums on all the remaining cards and put any additional funds that you have on the CC with the lowest balance. Once the card with the lowest balance is paid off, start paying off the card that has the next lowest balance.

Don't balance transfer to your Citi card if that is what you are thinking. You would pay to much interest, and raise your UTI in the transfer and it really won't do much for your score.

[Anonymous]

Your scores are high enough to get you almost any credit card that you desire.

I wish that were true. Those are credit karma scores, and they're a lot like mine. In reality, my Fico scores are way lower.

[jamie123]

---

@Anonymous wrote:

Your scores are high enough to get you almost any credit card that you desire.

I wish that were true. Those are credit karma scores, and they're a lot like mine. In reality, my Fico scores are way lower.

---

Ahhh....Good catch! Yeah, you just can't trust those FAKOS at all. I thought the OP was quoting real FICOs.

The OP must have some pretty decent scores and history though, look at the size of his CLs. I bet he would get an AMEX if he apped for one.

[scorewatcher7]

plan B. Though the same thing in terms of utilization, there are subtle differences in the scoring algorithm that take into account that you have balances on each card, regardless if the utilization is the same. The algorithm will possibly score you lower by seeing your risk factor as higher as a result of using multiple cards. 

[bdhu2001]

---

@hombre14 wrote:

Background:  AAoA 11.6 yrs, 2 hard inq's, no lates/derogs, 20k balances-  ~100k overall credit available.    Scores via Credit Karma-  TU 753, EQ 747

I won't be able to fully pay off the 20k debt for approximately 12-18 months.   My question-  in the meantime, in terms of FICO score am I better to spread the debt around on my cards, or am I better having 4 cards report zero balances, and one card having most/all the balance?    In other words, which is better:

Scenario A

B of A 3k balance, 15k limit-   20% util

Discover 3k balance, 16.5k limit- 18% util

NuVision Credit union-  4k bal, 20k limit-  20% util

BarclayVisa-   4k bal, 17,5k limit-   23% util

Citibank Aadvantage-  6k bal, 31k limit-  19% util

Scenario B

B of A   zero bal

Discover zero

NuVision zero

Barclay zero

Citibank-  20k balance, 31k limit-  64% util

Obviously, overall utilization (~20%) is the same in both scenarios... just wondering which Scenario would likely produce the higher current FICO score (and why)?

---

Instead of just advising us of how you can spread your balance, can you tell us where you currently are on utilization of each card. I don't recommend going over 30% on any card, unless you have a low introductory rate (without a transfer fee).

[hombre14]

My current util pretty much is Scenario A, that I laid out.    

And to answer a previous question-  my "true" FICO from Discover is 753 as of Jan 13;  so in my case at least, the "FAKO's" from CreditKarma appear to be very close to my actual FICO.

[gdale6]

---

@Anonymous wrote:

Your scores are high enough to get you almost any credit card that you desire.

I wish that were true. Those are credit karma scores, and they're a lot like mine. In reality, my Fico scores are way lower.

---

Those are Vantage 3.0 scores once you get the upgrade to the two bureau report at CK. The Vantage score is used by some creditors to make decisions though Fico is still the premier choice by far.

[Anonymous]

---

@gdale6 wrote:

---

@Anonymous wrote:

Your scores are high enough to get you almost any credit card that you desire.

I wish that were true. Those are credit karma scores, and they're a lot like mine. In reality, my Fico scores are way lower.

---

Those are Vantage 3.0 scores once you get the upgrade to the two bureau report at CK. The Vantage score is used by some creditors to make decisions though Fico is still the premier choice by far.

---

I know.