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Other than lowering utilization, will making payments more than required

Regular Contributor

Other than lowering utilization, will making payments more than required

help your FICO score. I was wondering if paying more than your minimum on monthly credit card payments or revolving credit payments would help my FICO score. I know it lowers my utilization but is any additional credit given? I have been making sure I am paying more than the minimum payment on all my credit cards and revolving debts.


Message Edited by Madison on 11-02-2007 11:37 AM
Message 1 of 6
5 REPLIES
Senior Contributor

Re: Other than lowering utilization, will making payments more than required

Madison, absolutely it helps your scores when you lower your utils!

I went from 521 in March to 649 in Oct. just by doing that. Smiley Happy

I PIF'ed 4 of my 6 cards, then brought the utils down to 10%-20%. The optimum util is 1%-9%.

The theory is that it shows lenders that you are acting responsibly in handling your credit.
"Never ever, ever be late. Never" (FUTR)
Message 2 of 6
Super Contributor

Re: Other than lowering utilization, will making payments more than required



Madison wrote:
 Other than lowering utilization, will making payments more than required help your FICO score.
I don't think so.  There might be a fraction extra for reducing your total debt, but I  think the effect will be pretty small.
 
Having said that, keeping util below 9% is the best short term move to improve your score
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
Message 3 of 6
Moderator Emerita

Re: Other than lowering utilization, will making payments more than required

Paying a couple of bucks above minimum might not affect your FICO score, but it sure will cheer up your creditors.

It's easy, when we get all score-focused, to forget that the lender has its own expectations. So if you want to get increased credit limits, better APR's, additional card offers, maybe that one-time courtesy removal of a late, paying well above minimums is very important. Not to mention paying the d**n card off in less than 18 years and five months, or whatever it is these days! Smiley Surprised
* 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 4 of 6
Moderator Emeritus

Re: Other than lowering utilization, will making payments more than required



haulingthescoreup wrote:
Paying a couple of bucks above minimum might not affect your FICO score, but it sure will cheer up your creditors.


With Amex yes but not true with the others. CCCs love when you have big balances revolving and some hope you pay late so they can ratejack you and CLD you. You take a big financial hit and pay huge interest and your scores tank with your new util. Check out the movie Maxed-Out.
Message 5 of 6
Moderator Emerita

Re: Other than lowering utilization, will making payments more than required


fused wrote:

haulingthescoreup wrote:
Paying a couple of bucks above minimum might not affect your FICO score, but it sure will cheer up your creditors.

With Amex yes but not true with the others. CCCs love when you have big balances revolving and some hope you pay late so they can ratejack you and CLD you. You take a big financial hit and pay huge interest and your scores tank with your new util. Check out the movie Maxed-Out.


What a cynic! Smiley Very Happy I know that's true of a lot of the scuzzier lenders, but not necessarily all, right? DH has been getting CLI's and whatnot from Discover and BofA by keeping balances, but making more than minimum payments (once I stepped in, that is!) Discover also finally lowered his criminally high APR when I badgered him into calling.

I'm sure I've read on other posts that you can kiss goodbye any hopes of CLI's and APR reductions if all you're doing is making minimum payments...
* 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 6 of 6