topic Re: Simulator Suggestions...Interesting in General Credit Topics

Simulator Suggestions...Interesting

Anonymous — Tue, 08 Apr 2008 18:56:54 GMT

Hi, all.

I was just approved for a 4K nrewards MC card from NFCU...my new best friend! I also was approved for 2 other low limit dept store cards.

At any rate, with the inception of these new cards my util is going from 103% to 23%. According to the simulator I could see anywhere from a 40-60 pt hike.

It also suggested that by transferring my current 3 low lim cc's to the new card I could see anywhere from a 60-80 pt hike! I wasn't aware that BT's could bring such a reward.

I just got a 150+ hike on CRs across the board! Could I truly potentially see another 100+ just with these two scenarios?! Seems unreal but if that's the case then I'm doing the BT's as soon as I get my new card!

Thanks for sharing.

Re: Simulator Suggestions...Interesting

MidnightVoice — Tue, 08 Apr 2008 19:07:00 GMT

SerenityBound wrote:
Hi, all.

I was just approved for a 4K nrewards MC card from NFCU...my new best friend! I also was approved for 2 other low limit dept store cards.

At any rate, with the inception of these new cards my util is going from 103% to 23%. According to the simulator I could see anywhere from a 40-60 pt hike.

It also suggested that by transferring my current 3 low lim cc's to the new card I could see anywhere from a 60-80 pt hike! I wasn't aware that BT's could bring such a reward.

I just got a 150+ hike on CRs across the board! Could I truly potentially see another 100+ just with these two scenarios?! Seems unreal but if that's the case then I'm doing the BT's as soon as I get my new card!

Thanks for sharing.

I assume you will get some hits for Inqs and new credit to offset the reduced util

Re: Simulator Suggestions...Interesting

Anonymous — Tue, 08 Apr 2008 19:15:56 GMT

MidnightVoice wrote:

I assume you will get some hits for Inqs and new credit to offset the reduced util

URGH! No doubt MV! I took 8 hits for the inq over the weekend incl 1 mgtg app (total 32 on EQ now - 2 of the 8 from NFCU). But it will definitely be worth it in the long run.

Re: Simulator Suggestions...Interesting

Anonymous — Tue, 08 Apr 2008 19:39:46 GMT

I'm kind of new here, so I hope someone will correct me if I am wrong, but maybe that is because you will be spreading out your util.

If I understand correctly, it is not just your overall util that is taken into account, but also what % of each CL you are using.

As an example:

Card1 with a $1,000 limit 100% util

Card2 with a $2,000 limit 100% util

Card3 with a $15,000 limit 0% util

In this case your total util is $3,000/$18,000 = 16.67%

However, you also are using 100% of Cards 1 and 2 and 0% of card 3, (100*2)/300 = 66.67% average util per card

Moving $3,000 to Card3 would then be 0%, 0%, 20% = 6.67% average util per card

Then again, maybe I have no clue what I'm talking about and this makes no difference

Re: Simulator Suggestions...Interesting

MidnightVoice — Tue, 08 Apr 2008 19:43:02 GMT

You are probably right. FICO does not like a maxed out card, and prefers the debt spread.

To be honest, I am not sure why, as the logical thing to do if one is going to carry a balance is to do it all on the lowest interest card.

But FICO sense and fiscal sense do not always agree.

Re: Simulator Suggestions...Interesting

Anonymous — Tue, 08 Apr 2008 19:47:14 GMT

MidnightVoice wrote:

You are probably right. FICO does not like a maxed out card, and prefers the debt spread.

To be honest, I am not sure why, as the logical thing to do if one is going to carry a balance is to do it all on the lowest interest card.

But FICO sense and fiscal sense do not always agree.

I have also never understood the reasons behind this aspect of FICO scoring.

I guess we have to accept the assumption that in Fair Isaac's years of research, they have determined that individual util is a predictive factor. They don't just make this stuff up, as much as it sometimes seems like they do.

Re: Simulator Suggestions...Interesting

MidnightVoice — Tue, 08 Apr 2008 19:55:19 GMT

cheddar wrote:

I guess we have to accept the assumption that in Fair Isaac's years of research, they have determined that individual util is a predictive factor.

Agreed

cheddar wrote:

They don't just make this stuff up, as much as it sometimes seems like they do.

. Agreed

Re: Simulator Suggestions...Interesting

Anonymous — Tue, 08 Apr 2008 19:55:31 GMT

I tend to agree with Gary, however i entered a hypothetical scenario with most of the bals on the other 3 going to the big card and small bals remaining and it only generated a 15-40 pt increase. I was thinking about transferring only 2 cards and then paying down the 3rd one and the big one.

But again, this was fico's suggestion lol and I still don't have full grasp of the whole scoring model yet to say "well that doesn't make much sense" lol.

Re: Simulator Suggestions...Interesting

Anonymous — Tue, 08 Apr 2008 20:00:12 GMT

For what its worth I have noticed score increases when debt was spread more evenly among cards, and keeping overall utilz below 15-20%. Not as much increase when utilz was between 1-15 %.

Re: Simulator Suggestions...Interesting

MidnightVoice — Tue, 08 Apr 2008 20:06:56 GMT

gatoravi8tor1 wrote:
For what its worth I have noticed score increases when debt was spread more evenly among cards, and keeping overall utilz below 15-20%. Not as much increase when utilz was between 1-15 %.

Actually I guess that kinda makes sense. With high scores and low util, FICO likes to see half the cards with a close to zero balance. Maybe with lower scores and high Util, it likes everything spread.

And it probably frightens the CCCs less as well

Re: Simulator Suggestions...Interesting

Anonymous — Tue, 08 Apr 2008 20:12:31 GMT

MidnightVoice wrote:

Actually I guess that kinda makes sense. With high scores and low util, FICO likes to see half the cards with a close to zero balance. Maybe with lower scores and high Util, it likes everything spread.

And it probably frightens the CCCs less as well

So maybe I will just BT them over and then fill the tank up once on each one? lol

Re: Simulator Suggestions...Interesting

Anonymous — Tue, 08 Apr 2008 20:53:01 GMT

Congrats on yr new card!Hi whats yr scores? where does NFCU pull frm? and is this yr first card with them ? I bank w/them but hvnt applied for anything yet? Oh any baddies in the past 24mths?

Re: Simulator Suggestions...Interesting

Anonymous — Tue, 08 Apr 2008 22:29:17 GMT

Bear in mind the FICO formula factors in your total utilization, as well as the utilization of each individual card. This is why BTs rarely give the FICO score boost people expect.

So getting a new credit card with a high CL will help your total utilization, but for true FICO love, you've got to pay down all the CCs.

Re: Simulator Suggestions...Interesting

Anonymous — Tue, 08 Apr 2008 22:40:01 GMT

TheNewWorldMan wrote:
Bear in mind the FICO formula factors in your total utilization, as well as the utilization of each individual card. This is why BTs rarely give the FICO score boost people expect.

So getting a new credit card with a high CL will help your total utilization, but for true FICO love, you've got to pay down all the CCs.

Well with that being said I'll let my new card marinate for a while and just pay down the little cards.

Re: Simulator Suggestions...Interesting

Anonymous — Tue, 08 Apr 2008 22:43:02 GMT

mrsanderson wrote:
Congrats on yr new card!Hi whats yr scores? where does NFCU pull frm? and is this yr first card with them ? I bank w/them but hvnt applied for anything yet? Oh any baddies in the past 24mths?

MrsA!

NFCU pulls EQ (my best for now) and I got my new card literally minutes after I opened my ck/svgs accts. Most people got both the MC and VISA cards at once. I only opted for the MC. A lot of folks on the various boards have the NFCU Trifecta! I've got the card and currently pursuing a mgtg w/them now. I'm hoping to do an auto deal as well but I have to first wait and see what the house deal will be.

I totally love them already.

Good luck!