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Pay down util

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907grown
Established Contributor

Pay down util

If I pay my util down from 120% to 0, I know the score will increase, but will it continue to increase over time because of not utilizing the credit or is it a lump sum of points?


Starting Score: 460
Current Score: EQ 764, TU 764, EX 740,
BOA AK AIR 30,000, Discover IT 6300, Freedom 25,300, Barclays RMC 15,660, Ring 15,000, BCE 15,000, QS17,000,AARP 15,000, ChaseFU 8,000,AND A LOT MORE!
Message 1 of 5
4 REPLIES 4
jackg
Established Contributor

Re: Pay down util

Will your score continue to increase? It should, assuming that you don't have any other negative changes added to your report and continue to pay all debt repayments on time. Don't expect any huge increases though.
FICO scores on November 17, 2014 (prior to applying for and being approved my mortgage)

EX=738
EQ=735
TU=754

FICO scores on March 4, 2015 after being approved for mortgage and buying the home, the mortgage isn't yet reporting.
EX- 689 EQ- 739 TU- 739
Message 2 of 5
MarineVietVet
Moderator Emeritus

Re: Pay down util


@nyankovic wrote:
If I pay my util down from 120% to 0, I know the score will increase, but will it continue to increase over time because of not utilizing the credit or is it a lump sum of points?

Just don't leave it at 0% utilization. FICO likes to see some activity on the account. I use my cards monthly to pay recurring bills and also pay in full each month. 

 

 

(myfico)
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783

 

CC interest free as of 8/09
Time can heal all wounds and a low FICO.
"Hello my name is Sandy and I'm a recovering crediholic".

Message 3 of 5
creditwherecreditisdue
Senior Contributor

Re: Pay down util


@nyankovic wrote:
If I pay my util down from 120% to 0, I know the score will increase, but will it continue to increase over time because of not utilizing the credit or is it a lump sum of points?

 

Once you have achieved optimal UTIL and your score stabilizes at a new point assuming all else remains equal further improvements would be gradual and based on the effect of the passing of time.
Message 4 of 5
creditwherecreditisdue
Senior Contributor

Re: Pay down util


@MarineVietVet wrote:

@nyankovic wrote:
If I pay my util down from 120% to 0, I know the score will increase, but will it continue to increase over time because of not utilizing the credit or is it a lump sum of points?

Just don't leave it at 0% utilization. FICO likes to see some activity on the account. I use my cards monthly to pay recurring bills and also pay in full each month. 

 

 

(myfico)
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783

 

CC interest free as of 8/09
Time can heal all wounds and a low FICO.
"Hello my name is Sandy and I'm a recovering crediholic".


As long as your cards remain active (do not become dormant) and you report one small balance that is enough for FICO purposes. Issuers want to see activity. Non-activity invites closure for disuse.

Message 5 of 5
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