topic Re: Affect on Score in Understanding FICO® Scoring

Affect on Score

Anonymous — Sat, 28 Feb 2015 19:58:07 GMT

Hello,

My name is David. I have several credit cards and would like to list for you the credit limits, my current score and tell you last months balances compared to the balances that will be reported this coming month. I would like your opinions as to what affect these actions will have on my score.

I will list 3 columns in this order.............CREDIT LIMIT, LAST MONTH BALANCE, NEW BALANCE

1500.00 1453.97 740.00

1750.00 1757.46 850.00

1500.00 1482.98 740.00

900.00 854.79 440.00

400.00 249.87 180.00

500.00 450.42 240.00

5000.00 4904.23 4800.00

400.00 382.93 180.00

As you can see we dropped the utilization to below 50% on most of the cards. One we are not able to at this point. Also, I just paid off a signature loan that was max owed $2000 and was paid off last month. Monthly payment on that was $177.

Other than the above. I have an auto loan with Ford Credit. It's four months old and in perfect standing. Owe $23500 on that.

Current scores are as follows

TU = 612

EX = 592

EQ = 597

Looking for a dramatic bump. The TU score WAS 597 a week ago and ONE of the cards reported a balance change and TU jumped 15 points.

What can I reasonably expect in a month when all of these balances report?

Thanks

David

Re: Affect on Score

Anonymous — Sat, 28 Feb 2015 20:03:33 GMT

any changes in the utilization should help with your score, but the ideal % is under 20. under 10% is even better if u can mange that. this only applies when everything else stay the same

r u looking for a mortgage anytime soon?

Re: Affect on Score

Anonymous — Sat, 28 Feb 2015 20:12:21 GMT

I am very aware of the "lower utilization - higher score" scenario. I understand the cause and effect. Yes we are in the process of rebuilding and do plan to obtain a mortgage soon. We know where our score needs to be for that to happen.

My question is simple.........what drop could I expect with the current paydown. It was a step to get most cards below the 50% threshold. Next, I want to pay all of the smaller ones off completely and snowball their payments into the larger one. I know how to do all this and have a plan. Question is merely about score.

Thanks.

Re: Affect on Score

Anonymous — Sat, 28 Feb 2015 20:19:25 GMT

You will see the most drastic score improvements from not having any balance on 3/5ths of your revolving tradelines, and getting util down to 30% or less on that remaining 2/5ths.

Once you cross that bridge the next step is to only report balance of 1-9% on one single revolving tradeline.

Re: Affect on Score

Anonymous — Sat, 28 Feb 2015 20:38:51 GMT

@Anonymous wrote:
I am very aware of the "lower utilization - higher score" scenario. I understand the cause and effect. Yes we are in the process of rebuilding and do plan to obtain a mortgage soon. We know where our score needs to be for that to happen.

My question is simple.........what drop could I expect with the current paydown. It was a step to get most cards below the 50% threshold. Next, I want to pay all of the smaller ones off completely and snowball their payments into the larger one. I know how to do all this and have a plan. Question is merely about score.

Thanks.

i dont think anyone will have an answer for that. it also depend how thick your credit history is. inq/AAoa/collections...etc

Re: Affect on Score

taxi818 — Sat, 28 Feb 2015 23:22:14 GMT

Hard. to answer as you still have balances on every single card. of course overall is now under 50 percent. but don't forget about how many acounts that have balance. would have been better to pay the low limit cards down to 0. and a little less on the big balance cards. as that will take more time. and use a ladder approach. lower the balance. try to get it to 0 the quickest. so if half your cards had a zero balance. you will see bigger bump. with same amount of money you are paying down. so impossible to know. at least you saw 15 points with tu.

Re: Affect on Score

Anonymous — Sat, 28 Feb 2015 23:55:30 GMT

I think you'll see a pretty big bump. My experience has been 2-3 points for every 5% drop in utilization, but I only have a balance on one card so YMMV. You also had a lot of maxed cards that are no longer maxed. My approach would be to get that $4800/5000 card below 90% utilization so it's not maxed anymore, and then start knocking off the smaller balances and SD those cards until you're totally debt free.

Re: Affect on Score

Anonymous — Mon, 02 Mar 2015 02:28:13 GMT

Thank you all for your input.

Re: Affect on Score

Booboo71 — Mon, 02 Mar 2015 02:36:35 GMT

Also not all cards report monthly either.

Re: Affect on Score

NRB525 — Mon, 02 Mar 2015 02:54:45 GMT

@Anonymous wrote:
Hello,

My name is David. I have several credit cards and would like to list for you the credit limits, my current score and tell you last months balances compared to the balances that will be reported this coming month. I would like your opinions as to what affect these actions will have on my score.

I will list 3 columns in this order.............CREDIT LIMIT, LAST MONTH BALANCE, NEW BALANCE

1500.00 1453.97 740.00
1750.00 1757.46 850.00
1500.00 1482.98 740.00
900.00 854.79 440.00
400.00 249.87 180.00
500.00 450.42 240.00
5000.00 4904.23 4800.00
400.00 382.93 180.00

As you can see we dropped the utilization to below 50% on most of the cards. One we are not able to at this point. Also, I just paid off a signature loan that was max owed $2000 and was paid off last month. Monthly payment on that was $177.

Other than the above. I have an auto loan with Ford Credit. It's four months old and in perfect standing. Owe $23500 on that.

Current scores are as follows

TU = 612
EX = 592
EQ = 597

Looking for a dramatic bump. The TU score WAS 597 a week ago and ONE of the cards reported a balance change and TU jumped 15 points.

What can I reasonably expect in a month when all of these balances report?

Thanks
David

Congratulations on reducing the balances that much that fast. It's an acomplishment!

Do you have any lates or bad situations in your past? The scores in low 600's look like something else is going on in the past?

Who are the cards with? Can you add the bank and card name to each row? Depending on which they are, there may be some steps you want to take to increase available credit lines to help with the utilization count.

And while you should see some bump at 50% utilization, there's more balances to pay down for the next significant increase in scores.

Re: Affect on Score

Booboo71 — Mon, 02 Mar 2015 03:01:27 GMT

I'm by no means a credit expert sitting at mid 600's but those balances are still really high. Especially the 5000/4800. I understand they want a "idea" of what it might jump up to but I dont really think that much, but stranger things have happened.

Good luck original poster I hope you bump what you need it to.

Re: Affect on Score

Anonymous — Mon, 02 Mar 2015 03:03:14 GMT

@Booboo71 wrote:
I'm by no means a credit expert sitting at mid 600's but those balances are still really high. Especially the 5000/4800. I understand they want a "idea" of what it might jump up to but I dont really think that much, but stranger things have happened.

Good luck original poster I hope you bump what you need it to.

~630-650 best case scenario with "perfect" UTL if we're seeing dips into high 500's as it is.

Re: Affect on Score

Anonymous — Mon, 02 Mar 2015 03:08:21 GMT

@NRB525 wrote:
@Anonymous wrote:
Hello,

My name is David. I have several credit cards and would like to list for you the credit limits, my current score and tell you last months balances compared to the balances that will be reported this coming month. I would like your opinions as to what affect these actions will have on my score.

I will list 3 columns in this order.............CREDIT LIMIT, LAST MONTH BALANCE, NEW BALANCE

1500.00 1453.97 740.00
1750.00 1757.46 850.00
1500.00 1482.98 740.00
900.00 854.79 440.00
400.00 249.87 180.00
500.00 450.42 240.00
5000.00 4904.23 4800.00
400.00 382.93 180.00

As you can see we dropped the utilization to below 50% on most of the cards. One we are not able to at this point. Also, I just paid off a signature loan that was max owed $2000 and was paid off last month. Monthly payment on that was $177.

Other than the above. I have an auto loan with Ford Credit. It's four months old and in perfect standing. Owe $23500 on that.

Current scores are as follows

TU = 612
EX = 592
EQ = 597

Looking for a dramatic bump. The TU score WAS 597 a week ago and ONE of the cards reported a balance change and TU jumped 15 points.

What can I reasonably expect in a month when all of these balances report?

Thanks
David

Congratulations on reducing the balances that much that fast. It's an acomplishment!
Do you have any lates or bad situations in your past? The scores in low 600's look like something else is going on in the past?

Who are the cards with? Can you add the bank and card name to each row? Depending on which they are, there may be some steps you want to take to increase available credit lines to help with the utilization count.

And while you should see some bump at 50% utilization, there's more balances to pay down for the next significant increase in scores.

We are two years away from the discharge of our BK. Also, our score was up to 630 about 12 months ago, however, we financed a car through our credit union.......hate it....sold it a month later and financed a different one.............sold it for more than I paid and bought a new one in November, which was financed through Ford Credit. Also, Last Feb, we took out a $10,000 signature loan from our Credit Union for some home remodel. The remodel cost more than we borrowed (unexpected surprises) and we ended up maxing out credit cards to get it completed. All the new credit caused the score to drop drastically. Since the BK, there have been no lates......not even one day. The BK was the result of two back to back job losses and major financial upheaval.

Anyway...........Two of my CC are through Capital One (1750 credit limit and 1500 credit limit), one is through Citi Bank (1500 credit limit), I have one through my credit union that is from Elan Financial ($5000 limit), One Speedway Gas Card (400 credit limit), one through a horrible Credit One ($400 limit), Younkers (900.00 credit limit), Walmart (500 limit).

Thanks for your input.

Re: Affect on Score

Booboo71 — Mon, 02 Mar 2015 03:20:48 GMT

Although I have never filed bankruptcy (thank G*D) Ive managed to crawl/claw my way up from a EQ 520, Trans 540 and most embarrassing 498 EX) this was 2011/2012. I watch my EQ take major slaps for apping to much and Experian is in its own universe but Transunion by far is my highest score (Jan 2015-674) Although Im sure its dropped some from apping for chase. (approved though!) So its a long haul but I notice some people jump 100 points within a year or less.

My scores as of Jan 2015

Equifax: 640

Trans: 674 (sure its lower now though)

Experian: 649

Re: Affect on Score

NRB525 — Mon, 02 Mar 2015 13:27:51 GMT

@Anonymous wrote:
@NRB525 wrote:
@Anonymous wrote:
Hello,

My name is David. I have several credit cards and would like to list for you the credit limits, my current score and tell you last months balances compared to the balances that will be reported this coming month. I would like your opinions as to what affect these actions will have on my score.

I will list 3 columns in this order.............CREDIT LIMIT, LAST MONTH BALANCE, NEW BALANCE

1500.00 1453.97 740.00
1750.00 1757.46 850.00
1500.00 1482.98 740.00
900.00 854.79 440.00
400.00 249.87 180.00
500.00 450.42 240.00
5000.00 4904.23 4800.00
400.00 382.93 180.00

As you can see we dropped the utilization to below 50% on most of the cards. One we are not able to at this point. Also, I just paid off a signature loan that was max owed $2000 and was paid off last month. Monthly payment on that was $177.

Other than the above. I have an auto loan with Ford Credit. It's four months old and in perfect standing. Owe $23500 on that.

Current scores are as follows

TU = 612
EX = 592
EQ = 597

Looking for a dramatic bump. The TU score WAS 597 a week ago and ONE of the cards reported a balance change and TU jumped 15 points.

What can I reasonably expect in a month when all of these balances report?

Thanks
David

Congratulations on reducing the balances that much that fast. It's an acomplishment!
Do you have any lates or bad situations in your past? The scores in low 600's look like something else is going on in the past?

Who are the cards with? Can you add the bank and card name to each row? Depending on which they are, there may be some steps you want to take to increase available credit lines to help with the utilization count.

And while you should see some bump at 50% utilization, there's more balances to pay down for the next significant increase in scores.
We are two years away from the discharge of our BK. Also, our score was up to 630 about 12 months ago, however, we financed a car through our credit union.......hate it....sold it a month later and financed a different one.............sold it for more than I paid and bought a new one in November, which was financed through Ford Credit. Also, Last Feb, we took out a $10,000 signature loan from our Credit Union for some home remodel. The remodel cost more than we borrowed (unexpected surprises) and we ended up maxing out credit cards to get it completed. All the new credit caused the score to drop drastically. Since the BK, there have been no lates......not even one day. The BK was the result of two back to back job losses and major financial upheaval.

Anyway...........Two of my CC are through Capital One (1750 credit limit and 1500 credit limit), one is through Citi Bank (1500 credit limit), I have one through my credit union that is from Elan Financial ($5000 limit), One Speedway Gas Card (400 credit limit), one through a horrible Credit One ($400 limit), Younkers (900.00 credit limit), Walmart (500 limit).

Thanks for your input.

Thanks for the additional info. Which BK, 7 or 13? Discharge meaning completion of a BK13 plan or waiting time after a BK7?

The BK would have been a good item to include in your opening post, because that is going to keep down any expectations you should have for score jumps. Until it gets resolved, or falls off each of your bureau reports, at which time you will see the big leap you want to see.

Keep making on time payments and working the utilization down, and wait for the BK to release your scores.

Re: Affect on Score

Anonymous — Mon, 02 Mar 2015 14:01:28 GMT

Well, the BK was a chapter 7, discharged two years ago. It has not prevented me from rebuilding and obtaining credit. I watch my scores rise and lower based on recent activity so did not feel it was relevent to the question at hand. I am aware of the reprocussions the BK has on credit and have done much work to rebuild.........

Thanks to all that offered any input. Greatly appreciated. I guess it is all sheer speculation anyway.

God Bless.

Re: Affect on Score

Anonymous — Sat, 14 Mar 2015 15:17:02 GMT

@Anonymous wrote:
Hello,

My name is David. I have several credit cards and would like to list for you the credit limits, my current score and tell you last months balances compared to the balances that will be reported this coming month. I would like your opinions as to what affect these actions will have on my score.

I will list 3 columns in this order.............CREDIT LIMIT, LAST MONTH BALANCE, NEW BALANCE

1500.00 1453.97 740.00
1750.00 1757.46 850.00
1500.00 1482.98 740.00
900.00 854.79 440.00
400.00 249.87 180.00
500.00 450.42 240.00
5000.00 4904.23 4800.00
400.00 382.93 180.00

As you can see we dropped the utilization to below 50% on most of the cards. One we are not able to at this point. Also, I just paid off a signature loan that was max owed $2000 and was paid off last month. Monthly payment on that was $177.

Other than the above. I have an auto loan with Ford Credit. It's four months old and in perfect standing. Owe $23500 on that.

Current scores are as follows

TU = 612
EX = 592
EQ = 597

Looking for a dramatic bump. The TU score WAS 597 a week ago and ONE of the cards reported a balance change and TU jumped 15 points.

What can I reasonably expect in a month when all of these balances report?

Thanks
David

JUST WANTED TO GIVE AN UPDATE TO LET ALL OF YOU KNOW WHAT THE REPORTS DID AFTER THESE ACCOUNTS REPORTED THE REDUCED BALANCES.

TRANSUNION WENT FROM 612 TO 627 (15 POINT INCREASE)

EXPERIAN WENT FROM 592 TO 627 (25 POINT INCREASE)

EQUIFAX WENT FROM 597 TO 613 (16 POINT INCREASE)

WE STILL HAVE MUCH WORK TO DO, BUT THE INCREASES ARE ENCOURAGING.

THANKS

Re: Affect on Score

NRB525 — Sat, 14 Mar 2015 15:29:46 GMT

Congratulations! Credit building takes a long time. You are well on the way now.

Re: Affect on Score

redbeard — Sat, 14 Mar 2015 15:36:57 GMT

If you can get the last one that is over 90% utilization under 90%, you'll see another nice bump.

Unfortunately, you are penalized for having any credit card over 90% utilization, regardless of what your total utilization is.

Pay it down to under $4500 and it may give you another 10 points. Keep in mind, you have to pay enough to get it under $4500 plus whatever interest they will add on to make sure it reports under $4500.

Dan