topic Re: Is this really a good idea? in General Credit Topics

Is this really a good idea?

Anonymous — Thu, 19 Jul 2007 13:31:27 GMT

I was on the TU website looking at my scores and report and I went into the fico simulator and it suggested paying off 90% of my debt over the next 24 months? Why? Wouldn't I be better benefited if I pay my utilization down every month until I get it down to 1-9%?

Re: Is this really a good idea?

MidnightVoice — Thu, 19 Jul 2007 13:34:19 GMT

This is the time factor. If you simulate paying off over 24 months you get a bigger score jump than paying off all at once. This is because the former includeds another two years of (assumed) perfect payment history.

Re: Is this really a good idea?

Anonymous — Thu, 19 Jul 2007 13:36:58 GMT

So what if I have some low balances that could be paid off in say a month. Would I get points for that? I don't want to continue to pay interest on a small balance if I don't have to. Right?

Re: Is this really a good idea?

Anonymous — Thu, 19 Jul 2007 13:53:40 GMT

It told me the same thing. Apparently I have to wait 2 years to join the 700 club...........darn it!!

By all means please, pay them down if you can, now. Yes, you'll get your utilization points now. But, your aging points will come over time. At least that's how I interpret it.

And yes, do pay all bills on time.