topic Re: Paying off Debt in Understanding FICO® Scoring

Paying off Debt

velo90 — Sun, 20 May 2007 19:50:53 GMT

Does anyone know?.... If I pay off all of my debt (approx. $8000), what potential increase in my credit score can I see. I understand that the numbers can vary but does anyone know why it might? Whouldn't x dollars equal x points in all circumstances? Thanks, Eric

Re: Paying off Debt

Tuscani — Sun, 20 May 2007 19:52:17 GMT

What kind of debt? Are any collections or judgements?

Re: Paying off Debt

velo90 — Mon, 21 May 2007 01:46:50 GMT

It's all credit card debt. I had a medical collection paid several years ago and it's still hurting. Thank you for your reply. Eric

Re: Paying off Debt

Tuscani — Mon, 21 May 2007 01:55:37 GMT

What is your current utilization?

Re: Paying off Debt

velo90 — Mon, 21 May 2007 01:59:52 GMT

Sorry, What do you mean by "current Utilization"? -Eric

Re: Paying off Debt

Anonymous — Mon, 21 May 2007 05:33:44 GMT

Percent of the CC in use. For example, $1000 limit, $850 balance, is 85% util.

Re: Paying off Debt

velo90 — Wed, 30 May 2007 04:57:22 GMT

Sorry it's taken so long to respond. It took me awhile to find out the info you required. My current utilization is 55.85%. If I pay off my entire credit card debt (all installment loans), what type of score increase can I expect? What if all of the cards are closed due to CCCS? Thanks so much.

Re: Paying off Debt

Anonymous — Wed, 30 May 2007 05:18:26 GMT

Paying your debt down from 56 percent to between 1 and 9 percent will give you the biggest bump.

However, if you're working with CCCS, I strongly encourage you to dump them. Have you already closed all of your CCs?

Re: Paying off Debt

velo90 — Wed, 30 May 2007 17:25:25 GMT

I believe that the CC's are automatically closed out when you sign up with CCCS. I sent the check to them for the payoff so I cannot keep the balances at 1-9%. Any thoughts on score increase?

Re: Paying off Debt

Anonymous — Wed, 30 May 2007 19:09:15 GMT

I had a slightly different situation, but when I got the utilization down, I jumped about 50 points. Good luck.

Re: Paying off Debt

Anonymous — Thu, 31 May 2007 05:17:11 GMT

Have you already signed with CCCS and turned your CCs over to them?

Re: Paying off Debt

velo90 — Thu, 31 May 2007 21:35:11 GMT

Yes! I signed with them in '05. I sent the check for approx. $6700 to pay off the remaining debt about 5 days ago.

Message Edited by velo90 on 05-31-2007 02:35 PM

Re: Paying off Debt

Anonymous — Fri, 01 Jun 2007 05:35:15 GMT

So I take it they closed all your CCs back in '05?

Re: Paying off Debt

velo90 — Fri, 01 Jun 2007 15:07:16 GMT

I guess most of them are technically closed because the available balance reduces on my report but only a few state "closed" on any of my reports. I suppose I'll just wait and see. The check cleared so now it's just a matter of having the Gregorian monks scribe the information onto the scrolls with the special long-activating ink and sent on the camel caravans. Wish me luck!!!!!!!!!!!

Re: Paying off Debt

Anonymous — Fri, 01 Jun 2007 21:00:15 GMT

I'd call the CCCs and ask 'em. If CCCS didn't close 'em, those open accounts could prove to be very valuable. Even if there are lates on the account, if it's open you stand a better chance to get rid of adverse reporting via GW. The longer it's been open, the better for you.