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New Member
Posts: 5
Registered: ‎05-21-2007
0

Will my FICO score drop?

My wife has a mortgage in her name and a car payment.  I have a balance of 5k on one credit card that is 0%.  I probably have at least $60k in available credit on cards that I do not use so there is no balance on them.  I also have a car payment.  If I pay off my credit card and both our cars in the next 6 months, will my our FICO scores drop?  I think my score right now is 750 and hers is 790.  We are going to be getting a new mortgage in the next 12 months.  If they do drop, will they drop enought to affect our mortgage rate?  Thanks.
Moderator Emeritus
Posts: 6,182
Registered: ‎03-29-2007
0

Re: Will my FICO score drop?

What is your current util?
New Member
Posts: 5
Registered: ‎05-21-2007
0

Re: Will my FICO score drop?

What does "util" stand for?  I look in the abbreviation guide but did not see it.  I heard that my score could eventually drop but that would take a while (not in the next 6-12 months).  Is this true?
Super Contributor
Posts: 8,195
Registered: ‎03-25-2007
0

Re: Will my FICO score drop?

percentage utilization of your credit - balances as a percentage of total availble credit
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
New Member
Posts: 5
Registered: ‎05-21-2007
0

Re: Will my FICO score drop?

I owe $5,800 on $58,000 possible so that is right at 10%.  If I pay it down to 5%, will 5% be better than 0%?  I can pay it off within 2 months. 
 
Also, my FICO in Dec 06, was 748. I had a lot more debt then on my credit cards.  The comments under my score were:
 
Missed payments on credit accounts (It is only one payment and CapOne is getting removed within next 60-90 days)(It was a over 30 day late payment in 12/02 and they agreed it went to wrong address).  Does missed payments mean late payments because this is the only thing I see as a late or a missed payment?
 
Time since your most recent account opening is very recent (I think I opened up a 0% credit card last fall but none since then) 
 
The proportion of balances to credit limits (high credit) on your revolving/charge accounts is too high.  This of course is not down to 10% and lower if I want (0-5%).
 
The amount owed on your revolving/charge accounts is too high. (It was probably $20k then so obviously this has been corrected also) 
 
It looks like even if I pay it all off early, my score should go up because the above comments should be gone.  I probably should keep $2k on the credit cards to keep it from 1-4%.  Comments? 
 
Super Contributor
Posts: 8,195
Registered: ‎03-25-2007
0

Re: Will my FICO score drop?

That will probably do it.  Having said that, I don't know if getting above 750 will make a mortgage any cheaper!
 
And are all 3 scores at that level?  My mortgage company pulls all 3 and uses the middle one (and the middle one of my wife).
 
 
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
New Member
Posts: 5
Registered: ‎05-21-2007
0

Re: Will my FICO score drop?

No, over 750 won't but I was worried about it dropping lower than 720 if I paid these off completely.  It looks like I answered my own question.  If I pay them off, it can only go up since all 4 of the comments will be taken care of.  I may keep $2k on the 0% card but will pay it off after mortgage secured.  Either way, I think I am fine.  Thanks for the help!
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