03-19-2017 02:48 AM
03-19-2017 06:29 AM
I recently did a credit simulator using Credit Karma & Creditwise. I dont have a large total balance of revolving credit VS my credit availability, which is not much as I've been rebuilding since Feb 2016.
$5250 available / $870 owed
On both simulators I put in to pay off my entire balance, also tried $500, $250, and even $100. If I payed all $870 it was dropping my score 44 points.. The others were 40 points, etc. Even CK said that must be wrong because usually dropping utilization would raise, not lower my score.
Anyone ever have this happen? I definitely don't want to lower my score.
Here is my current situation to help answer any questions you might have, or to help why this would happen.
Started @ 499 Fico after lost all my cards (no BK) in 2008/2010 recession hit me.
My scores are far from great and I've been rebuilding back since Feb 2016. Started with unsecured Cap1 Plat credit builder @ $100 SL moved to $500, several store cards to help raise my scores, new car Dec 2016 through Cap1 Auto, and recently a Cap1 QS1 with $500 SL
I'm now sitting at Fico 8 scores of TU 619, EQ 623, EX 618.
I don't have a lot of credit available (sitting at about $5250 total). I have 100% payment history last 18 months (no negative marks on any credit lines). I have 0 baddies & 0 public records. I have about 8/9 INQ on each bureau. I'm currently using about 32% of my credit, mostly because I have a large mattress purchase balance running on a store card @ 18 months 0% apr. Everything else I usually PIF or carry small balance 2 months.
Current cards (32% utilization overall) only because my recent $500 CLI and $2350 in available credit has not hit my reports yet because the cards haven't shown up yet (too recent). My utilization should drop significantly after they do.
Paying all down to 0 would drop your score. One card having a less than 10% balance is optimal. It's possible that your hit from all 0 balances would drop you into a lower bucket causing a complete rescoring based on that bucket. Algorithms are complex and so is financial risk. Different groups of numbers in the scoring system are handled slightly different, because the behavior in these groups is also different. Someone with a bad credit score is more likely to have a problem with a lot of available credit than a person with an exceptional score.
|EX08 659||EQ08 660||TU08 695||Starting: mid 300's||Goal: 700|
03-19-2017 10:00 AM
Don't pay the card balances to zero. Keep using at least one card for regular daily spend and ensure one card (preferably not a store card) is reporting a balance consistently. The store cards are something of a problem in this regard because to keep a balance reporting you have to spend money at that store, and you might not really need to spend money at that store.
Let the new credit limit increases report, then see how that helps. At low 600's scores there is likely something back in the past which the FICO score does not like.
Are there any negatives beyond, earlier than, 18 months back? Late payments? charge off? collections? Those would still be influencing score even if from 2010, until they drop off completely.
And I would not follow a CK Simulator. Just keep paying on time, let any negatives expire, and your score will recover nicely.
03-19-2017 09:24 PM