topic Re: Score improvement in Understanding FICO® Scoring

Score improvement

Anonymous — Sat, 15 Aug 2020 00:57:36 GMT

I'm about to drop my util from 49% to 0% by paying off $35K in CCs from an installment loan that I've just been approved for. My profile:

743, 745 and 733 = current ficos

how much can or should I expect my scores to improve? Thanks

Re: Score improvement

AllZero — Sat, 15 Aug 2020 01:21:00 GMT

I don't know the answer to your question. I'll drop a link.

I would recommend reading the below from ABCD2199
The Truth about Credit Card Utilization
My 11 Rules to Credit Rebuilding
FICO Score: What to pay down first?

From Birdman7
General Scoring Primer and Version 8 Master Thread rev.5.17.20

Re: Score improvement

AllZero — Sat, 15 Aug 2020 01:23:37 GMT

BTW If your revolving utilization reports zero, see may see the All Zero score decrease. You may want to initiate AZEO.

Re: Score improvement

SouthJamaica — Sat, 15 Aug 2020 02:25:03 GMT

@Anonymous wrote:
I'm about to drop my util from 49% to 0% by paying off $35K in CCs from an installment loan that I've just been approved for. My profile:

743, 745 and 733 = current ficos

how much can or should I expect my scores to improve? Thanks

I don't have enough information to answer your question but

(a) be sure to let a small balance report on one of the cards, rather than have them all report zero, and

(b) the new installment loan will probably cost you points in FICO 8's and 9's, but not knowing enough about your profile I can't even guess as to the effect of all this on your scores. To make a guesstimate I'd need to know what your revolving balances and limits are, and what other installment loans, if any, that you have, and their balances and original loan amounts.

Re: Score improvement

Anonymous — Sat, 15 Aug 2020 04:05:31 GMT

@SouthJamaica wrote:
@Anonymous wrote:
I'm about to drop my util from 49% to 0% by paying off $35K in CCs from an installment loan that I've just been approved for. My profile:

743, 745 and 733 = current ficos

how much can or should I expect my scores to improve? Thanks

I don't have enough information to answer your question but
(a) be sure to let a small balance report on one of the cards, rather than have them all report zero, and
(b) the new installment loan will probably cost you points in FICO 8's and 9's, but not knowing enough about your profile I can't even guess as to the effect of all this on your scores. To make a guesstimate I'd need to know what your revolving balances and limits are, and what other installment loans, if any, that you have, and their balances and original loan amounts.

Ahh I assumed too much.

I have four CCs where the total limit is $74,500 with a current total balance of $35k that'll be paid off with the new $35k installment loan.

I also have $195k in student loans that are at 100%

Re: Score improvement

M_Smart007 — Sat, 15 Aug 2020 17:28:54 GMT

@Anonymous wrote:
@SouthJamaica wrote:
@Anonymous wrote:
I'm about to drop my util from 49% to 0% by paying off $35K in CCs from an installment loan that I've just been approved for. My profile:

743, 745 and 733 = current ficos

how much can or should I expect my scores to improve? Thanks

I don't have enough information to answer your question but
(a) be sure to let a small balance report on one of the cards, rather than have them all report zero, and
(b) the new installment loan will probably cost you points in FICO 8's and 9's, but not knowing enough about your profile I can't even guess as to the effect of all this on your scores. To make a guesstimate I'd need to know what your revolving balances and limits are, and what other installment loans, if any, that you have, and their balances and original loan amounts.
Ahh I assumed too much.

I have four CCs where the total limit is $74,500 with a current total balance of $35k that'll be paid off with the new $35k installment loan.

I also have $195k in student loans that are at 100%

As posted upthread, for best scoring puposes, I would implement AZEO on your credit cards, let a small balance of at least 2% report on one card,

(typically 1-9% is good) Make sure it is on a Major Bank CC and not a store card. Some CU cards can be funky also.

Keep in mind if this is done on a Chase CC, if you pay it off after it reports, it will then report as a "ZERO" balance .. defeating the purpose of AZEO.

I think I got this all correct, may need more Coffee

Re: Score improvement

AllZero — Sat, 15 Aug 2020 17:37:07 GMT

@M_Smart007 . 👍! ☕ and 🍺 and 🍸.

Re: Score improvement

M_Smart007 — Sat, 15 Aug 2020 17:40:14 GMT

@AllZero wrote:
@M_Smart007 . 👍! ☕ and 🍺 and 🍸.

I typically make more sense after all 3