Hello Fico scoring forum
Long time lurker, first time poster - Ive been on the rebuilding forum for awhile but I need some scoring advice..
Ive been rebuidling since Jan 2012.
I have just app'd last week and been approved for a Debt consolidation loan to pay off my credit cards from 64% util.
Overview of my accounts as follows:
ACCOUNT / CL / BALANCE /OPENED
Nfcu visa - 3000/0 -Just opened in June 2014 to payoff a CA account for PFD
Nfcu Secured visa - 500/ 0 - opened 2.2014
Amazon - 600/0 - opened 7.2104
Cap 1 - 300 - balance 20.00 / opened 1.2012 with 2-30 day lates / Aug 2012 and Jan 2013
Walmart - 400.00 - bal 0 opened 4.2014
Nfcu auto loan - 30,000 - bal 27,000 -opened 3/2014
*Nfcu CLOC - 2500.00 (just approved earlier this week with item listed below
*Nfcu Debt consol loan of 4,000.00
I guess my thoughts were if I paid the 64% CC util down with the Debt consolidation loan (besides the better interest rate), that my ficos would increase even thought there are 2 new LOC appearing but the Debt cons loan is actually going to report as an installment loan and the CLOC will be considered revolving (which is good right since it increases my overall credit limit amounts?)
I am officially gardening and hoping I made the right choice. I have only 2 lates above (GW them like crazy) and 1 CA account with LVNV (1200.00 BOA visa from 7 years ag0) That will come off in Nov 2014 (only appearing on EQUI) Im optimistic that my scores will increase with these latest moves...
Thoughts welcome and ANY advice much appreciated in advance
MYFIC scores EX 614 / EQ 587 / TU 619
In a word, yes; just about any positive information is good information when you're rebuilding, and if you don't have open installment tradelines, adding one is a good idea to round out the mix of credit portion of the scorecard. Also airstriking your revolving utilization (leave a little bit on one of the cards at least, just pay off the bulk) is nothing but goodness.
How much, nearly impossible to say as you suggest you're rebuilding from a dirty file.
Honestly though, a debt consolidation loan if it materially affects your financial ability to repay (lower interest) should be done regardless of score impact: smart financial decisions trump FICO, and if you don't use your score to improve your financial capabilities, I'd suggest that's wasting a resource even. You're doing fine, seriously, congrats!
Doing the happy dance!
Thanks for the vote of confidence Revelate! I have spent many hours on these forums, debating on different ways to ease the stress level of the rebuild process. It really means alot for the "thumbs up" coming from you!
I thought I may have over done it since Ive literally been apping like crazy, but in the end, I imagine thats what it takes to get where I need to be! Its so nice to have a forum to help guide, encourage and just ask questions which some may see as ignorant.
Thanks again to all the credit experts for all of your support! You all have helped so many people get their lives back! Literally! Its so easy to destroy ones credit, and so exhausting getting back on track but more rewarding to see all the hard work and due diligence pay off! Us credit rebuilders are very fortunate to have your knowledge!
I will definalty report back my results - As of this morning, all util is down to 5% (all at zero with one reporting at about 5%), so Im super anxious to see the alerts coming thru soon! I did get a 3 point increase on EQ yesterday on 2 accounts that I had paid off myself to zero before the Consolidation loan....I wish I had that avatar where the lady is doing the happy dance or back flips
Have a terrific day!