topic Re: BLT impact on FICO Score! in Understanding FICO® Scoring

BLT impact on FICO Score!

CYBERSAM — Thu, 24 Sep 2020 03:33:13 GMT

I have 2 cards that are reporting high balance. 1st one has 48% UTI and 2nd with 54% UTI

I can BLT one to the other and have 76% and 0%. By doing this I’ll reduce some interest rate.

The question is how many points you guys think I would lose by having one card at 76% vs. two cards at 48% and 54% UTI?

Re: BLT impact on FICO Score!

FlaDude — Thu, 24 Sep 2020 13:58:39 GMT

I don't know the answer, but unless you have a short term need for a higher score, I'd go for less interest.

Re: BLT impact on FICO Score!

SouthJamaica — Thu, 24 Sep 2020 15:25:19 GMT

@CYBERSAM wrote:
I have 2 cards that are reporting high balance. 1st one has 48% UTI and 2nd with 54% UTI
I can BLT one to the other and have 76% and 0%. By doing this I’ll reduce some interest rate.
The question is how many points you guys think I would lose by having one card at 76% vs. two cards at 48% and 54% UTI?

I don't know if you would lose or gain, but either way I think the difference would be slight.

Re: BLT impact on FICO Score!

ccquest — Thu, 24 Sep 2020 15:31:42 GMT

Based on the Scoring Primer, it looks like there are thresholds for 30, 50, 70, 90, and 100% for individual cards. So one at 48% and the other at 54% could be better than one at 76%, but I'd guess with AZEO bonus and a single card at 76% (that you quickly pay down to under 70% if possible) you might do better than splitting the two. Aggregate utilization is also important, that's got 10% in addition to the other thresholds already mentioned.

That said, if you're doing large BTs, you might have other issues that are more important to address and I would agree with @FlaDude and focus on the actual costs vs FICO score here.

Re: BLT impact on FICO Score!

CYBERSAM — Thu, 24 Sep 2020 16:10:41 GMT

Aggregate utilization and AZEO would not be a factor here. BLT would save 4% on interest. But I can live with that if negative impact would be great from one card showing 75% UTL!

Re: BLT impact on FICO Score!

ccquest — Thu, 24 Sep 2020 17:08:05 GMT

How hard is it going to be to get than one card under 70% though? I'd say if it's easy the temporary downsides from being at 75% are short lived and you're less likely to get the "cards with balances" negative factor since it'd only be one card.

Re: BLT impact on FICO Score!

Anonymous — Sun, 27 Sep 2020 01:48:16 GMT

@CYBERSAM wrote:
I have 2 cards that are reporting high balance. 1st one has 48% UTI and 2nd with 54% UTI
I can BLT one to the other and have 76% and 0%. By doing this I’ll reduce some interest rate.
The question is how many points you guys think I would lose by having one card at 76% vs. two cards at 48% and 54% UTI?

At 76%, I believe you are considered maxed out. My understanding is that FICO algorithm may penalize more for a maxed out card.