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New Member
LosAngeles
Posts: 15
Registered: ‎03-11-2013

Paying off my Credit Card (from like 90% to 0% Utilization)

So, I am looking to get a new credit card. Because my current one only has an $800 limit. I just payed it off a couple of weeks ago, but it doesn't show on my report yet and my report usually updates on the 8th or 9th (or that's the date on my credit reports anyways)...

 

I used the simulator on here and it said that after paying off my credit card my score would jump from a 643 to a 723-763.... this seems a bit high. How accurate is the simulator? I hope it's correct. Also, how long after citibank reports to the credit bureaus does it actually show up?

 

I have about a year and a half of credit history and only on credit card if that helps any.

 

 

Thanks

 

first post btw :smileyhappy:

Valued Contributor
dodfire
Posts: 1,453
Registered: ‎04-14-2012

Re: Paying off my Credit Card (from like 90% to 0% Utilization)

Simulators are just that.....

I would not get my hopes up to see your score go that high but it will go up thats for sure.

For maximum scoring purpose, you should not zero out your card. Keep a few bucks on it.

As for citi...I will have to let someone else answer that one.

 

*8/10/13
Moderator Emeritus
llecs
Posts: 32,880
Registered: ‎08-04-2007

Re: Paying off my Credit Card (from like 90% to 0% Utilization)

OP, with 89% util reporting across roughly 15 open CCs w/ well more than half reporting a balance, I paid the debt down to 1% overall with all $0 balances except for one. EQ increased 125 and TU FICO 80 or so. Utilization was listed as the #1 harm to my FICO for both TU and EQ.

 

IMO, your estimation seems a tad high for only one CC. I'd say it would be accurate if you had multiple CCs at 90%, but I'd guess half or so.

 

DW has a Citi CC and hers reports within a day or so from the statement date, starting with EX or EQ.

Established Member
exl
Posts: 20
Registered: ‎03-01-2012

Re: Paying off my Credit Card (from like 90% to 0% Utilization)

Also keep in mind:

 

"This simulation was based on your paying down 90%-100% of your overall credit card balances over a period of 24 months. In general, your score will be helped as your credit history lengthens and you establish FICO® healthy behavior. So this score simulation took into account both your lower balances and the aging of your credit history."

Wallet: Chase Freedom / Citi Dividend Platinum Select / Discover Open Road
Sock Drawer: PayPal Smart Connect (GE MoneyBank)


Starting Score: EX-PLUS: 655 / EQ-FICO: 670 / TU-FICO: 647 [February 25, 2013]
Current Score: EX-PLUS: 676 / EQ-FICO: 725 / TU-FICO: 733
Goal Score: 800 across the board by December 1, 2013
New Member
LosAngeles
Posts: 15
Registered: ‎03-11-2013

Re: Paying off my Credit Card (from like 90% to 0% Utilization)

Thanks for the incite,


Yeah, I'm still waiting on my report to update, so we shall see. And I ran the simulator for paying 100% of my credit card off immediately. I also ran the one that was for paying down in a 24 month period and that score was significantly higher than the one I showed quoted, maybe 10-30 points higher.
Like I said, I think this estimate is pretty high, but I hope it's correct. lol

 

I was just asking if anyone knew how accurate these are. But I guess they're more of a guess than anything..

 

New Member
jasonbirks
Posts: 2
Registered: ‎03-29-2008

Re: Paying off my Credit Card (from like 90% to 0% Utilization)


exl wrote:

Also keep in mind:

 

"This simulation was based on your paying down 90%-100% of your overall credit card balances over a period of 24 months. In general, your score will be helped as your credit history lengthens and you establish FICO® healthy behavior. So this score simulation took into account both your lower balances and the aging of your credit history."


I had a question regarding this-I currently have about $1,900 in credit card debt.  The simulator says my score should go from a 612 to about 723-750 over the 24 month period.  I am starting the snowball method (by lowest balance) to pay down my debt. Is it a better idea to take the whole 24 months and pay down my CC's or to pay them off and carry a 1-9% util on two of them?  I really dont want to get hit with the interest.  However, I will qualify for a mortgage in August of 2014 and want to get the best possible rate.

Established Member
exl
Posts: 20
Registered: ‎03-01-2012

Re: Paying off my Credit Card (from like 90% to 0% Utilization)

jasonbirks:

 

I would pay down as much as you can, as quick as you can. I recently also adopted the snowball method myself and it has drastically improved my score. However I didn't take 24 months, not even 12 months to do it. If you're trying for CLIs, then sure; keep some UTILs. Although I have no experience with obtaining a mortgage, I would think anything between 0-15% UTIL would be fine.

Wallet: Chase Freedom / Citi Dividend Platinum Select / Discover Open Road
Sock Drawer: PayPal Smart Connect (GE MoneyBank)


Starting Score: EX-PLUS: 655 / EQ-FICO: 670 / TU-FICO: 647 [February 25, 2013]
Current Score: EX-PLUS: 676 / EQ-FICO: 725 / TU-FICO: 733
Goal Score: 800 across the board by December 1, 2013

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