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Snowball Negatively Affecting My Score?

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Anonymous
Not applicable

Snowball Negatively Affecting My Score?

I recently went over 30% cc utilization and have been trying to pay it down, I was at 45% but I used the snowball method to drop it to 40% but I'm not seeing my score go up. Before my debt increased I was at 706 TU/ 683 EQ, currently at 675 TU/ 667 EQ. Considering opening up a cc for balance transfer with 0% apr to help pay off the debt without interest but I'm worried I'll be denied because i'm under 700. Also wondering if another hard inquiry will drop my score. 

 

Some background:

Half my cards are at 0% utilization, one at 80% and a few in the 40-50%. Currently I am paying off the smaller ones and working my way to the higher one which is great for momentum, but is it hurting my score? My payment history is 100%, derogatory marks are 0, credit age 9 years, 38 open accounts, and 2 hard inquries (EQ has 5 but two are dropping off this month).

 

Thanks.

Message 1 of 39
38 REPLIES 38
Kree
Established Contributor

Re: Snowball Negatively Affecting My Score?

Is your credit age, oldest or the average age?

 

 

Message 2 of 39
Anonymous
Not applicable

Re: Snowball Negatively Affecting My Score?

Average age

Message 3 of 39
Sandman771
Valued Contributor

Re: Snowball Negatively Affecting My Score?

There are several breaking points for UTI 9% 30% 50% and 90%. Not sure ont he highest one, but if you cross that one you are considered "maxed out" on that card and you take a ding. 

Work on the one card with the highest UTI to maximize your score. They score you on overall UTI and also by individual UTI. Hope that makes sense? 

Starting Score: EQ497/TU496/EX 499
Currently: EQ 620 TU 654 EX 627
in the garden since 6/16/2021
Message 4 of 39
Anonymous
Not applicable

Re: Snowball Negatively Affecting My Score?

It does makes sense, and I was afraid I was hurting my score by not paying off the 80% first. 

Message 5 of 39
Anonymous
Not applicable

Re: Snowball Negatively Affecting My Score?

Aggregate utilization matters but so does individual card utilization. Your 80% card is bringing you down for sure. Any aggregate over 40/50% is as well.
Message 6 of 39
HeavenOhio
Senior Contributor

Re: Snowball Negatively Affecting My Score?

Are you using Credit Karma scores? If so, you might want to get your FICO8 scores to get a better indicator. You can get them with a $1 trial membership from CreditCheck Total. Cancel before the trial has ended.

 

If you're providing FICO scores, or if your FICO scores are in the range of the scores you've posted, you don't have a disaster on your hands, and you can pay in the manner that pleases you. Just don't expect a big increase until that card with 80% utilization has been paid down to a lower balance.

 

If scoring is what you're after, please post a list of your cards, their balances, and their limits. People here can offer specific advice about further paydowns.

Message 7 of 39
Anonymous
Not applicable

Re: Snowball Negatively Affecting My Score?

Thank you! I'll sign up for the free trial, yes I am currently using Credit Karma.

 

Here my cards:

COMPANY | BALANCE | LIMIT

Amazon | $706 | $2,400

AEO | $0 | $1,800

Barclay Card | $4,433 | $8,700

BOA Card | $0 | $1,000

BR Card | $1,789 | $3,900

Capital One |  $317 | $1,500

Capital One Quick |  $0 | $750

Capital One GMC | $949 | $1,100

Credit One Visa | $0 | $850

Credit One Master | $0 | $800

Express | $0 | $500

HSN | $768 | $3,500

Loft | $546 | $1,210

Nordstrom | $1,140 | $2,000

Overstock | $555 $950

QVC Card | $1,321 | $3,600

VS | $0 | $970

Walmart | $0 | $1,500

Message 8 of 39
Anonymous
Not applicable

Re: Snowball Negatively Affecting My Score?

Thank you for recommending CreditCheck Total! My Fico8 from them is 716, I"m thinking I will apply for the Discover It and do a balance transfer, this will save me in interest fees that I can keep using to pay down my debt.

Message 9 of 39
Anonymous
Not applicable

Re: Snowball Negatively Affecting My Score?

Bear in mind that transfering the balance to the 0% card will involve a fee.  A typical BT fee is 3%.  If you think you will be paying off the 80% card soon, the BT card won't help you much.  If you think it will take you several months, however, it is probably worth doing.  Also worth observing that the first month or two you will be paying more in fees/interest than you pay now.

Message 10 of 39
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