topic Re: 75 point boost in Understanding FICO® Scoring

75 point boost

Anonymous — Sun, 23 Aug 2020 19:17:36 GMT

I took out a loan to pay down about $36,000 in high interest CC debt, so my util went from 49% to 1%. I suppose the score will come down once the $36,000 installment loan hits. I wasn't expecting my score to go up so much.

ps...I used payoff.com to payoff of cc. 6.65% for 36 months. My CCs avaraged 16%

Re: 75 point boost

Trudy — Sun, 23 Aug 2020 19:00:40 GMT

Congratulations! That's a huge swing.

Re: 75 point boost

Anonymous — Sun, 23 Aug 2020 19:04:39 GMT

@Trudy wrote:
Congratulations! That's a huge swing.

Thanks. I still have about $200k in Student loan debt, where some loans are actually more than the original balances and none paid down. I guess installment loans don't have that big of an impact. We'll see.

Re: 75 point boost

Anonymous — Mon, 24 Aug 2020 02:57:20 GMT

Correct. Installment loan debt in terms of maxed out accounts impacts score far less than revolving debt / maxed out accounts.

Re: 75 point boost

ccquest — Mon, 24 Aug 2020 03:04:29 GMT

@Anonymous wrote:
@Trudy wrote:
Congratulations! That's a huge swing.
Thanks. I still have about $200k in Student loan debt, where some loans are actually more than the original balances and none paid down. I guess installment loans don't have that big of an impact. We'll see.

They definitley have an impact, but since it sounds like you're already at 100+%, I don't know how much the new one will impact your score to be honest. I went from 86% installment utilization to 94% (refinanced a private student loan to another one) and my EX F8 dropped 21 points when that change reflected. I do wonder if you'll mostly just get the new inquiry/account penalty (inquiry takes 30 days to impact) and that's it or if there will be anything more.

Re: 75 point boost

Anonymous — Mon, 24 Aug 2020 14:31:12 GMT

@ccquest wrote:
@Anonymous wrote:
@Trudy wrote:
Congratulations! That's a huge swing.
Thanks. I still have about $200k in Student loan debt, where some loans are actually more than the original balances and none paid down. I guess installment loans don't have that big of an impact. We'll see.
They definitley have an impact, but since it sounds like you're already at 100+%, I don't know how much the new one will impact your score to be honest. I went from 86% installment utilization to 94% (refinanced a private student loan to another one) and my EX F8 dropped 21 points when that change reflected. I do wonder if you'll mostly just get the new inquiry/account penalty (inquiry takes 30 days to impact) and that's it or if there will be anything more.

According to CK, when the inquiry hit my score only dropped two points on TU. I don't know what my TU Fico score is.

Re: 75 point boost

Anonymous — Tue, 25 Aug 2020 01:58:41 GMT

@Anonymous wrote:
According to CK, when the inquiry hit my score only dropped two points on TU. I don't know what my TU Fico score is.

The VS 3.0 shift you saw isn't very meaningful. If you have a Discover account, or some other CCs you can get your TU Fico 8 score for free.