topic Re: Stupid Question Alert: I apologize in advance... in Rebuilding Your Credit

Stupid Question Alert: I apologize in advance...

Anonymous — Tue, 11 Dec 2012 19:19:51 GMT

SW says my score would increase if I brought my utilization down. I increased the limits on all of my account as follows:

JCP $400- $700

ORCH BANK MC $300- $450

Open Sky Visa $500-$700

I tend to pay them off or leave $25 balance. I don't charge them up high. I don't think these have reported at this point. Hoping it brings my score up.

I did purchase a new car in February. Is this why my utilization is reporting high? I also have a student loan but with no "limit" I wonder how that is factored in. Will paying down my car faster improve my utilization? Your thoughts?

Re: Stupid Question Alert: I apologize in advance...

Swapmeet — Tue, 11 Dec 2012 19:28:19 GMT

What are the balances on your cards currently?

Re: Stupid Question Alert: I apologize in advance...

Jutz — Tue, 11 Dec 2012 19:25:20 GMT

No. UTIL only refers to the utilization of revolving credit lines. Installment accounts such as auto or student loans are not factored.

Re: Stupid Question Alert: I apologize in advance...

Anonymous — Tue, 11 Dec 2012 19:30:05 GMT

Wow! If that is the case I am really puzzled. The total debt I am currently carrying on all cards combined is $32...

Re: Stupid Question Alert: I apologize in advance...

Jutz — Tue, 11 Dec 2012 19:37:06 GMT

I wouldn't pay much attention to the FICO Simulator if that's what you're referring to. It gives me the same option of paying down UTIL when I'm reporting $46 with a total limit of $3550

Re: Stupid Question Alert: I apologize in advance...

StartingOver10 — Tue, 11 Dec 2012 19:43:00 GMT

@Jutz wrote:
I wouldn't pay much attention to the FICO Simulator if that's what you're referring to. It gives me the same option of paying down UTIL when I'm reporting $46 with a total limit of $3550

I get the same thing only my debt was $842 out of $24k in revolving cr lines and it still says to pay down utility. And the 842 was spread out over 3 cards...lol. I think that is probably a standard type option. I can't even get the simulator to give me a different score when I change any of the options...

Re: Stupid Question Alert: I apologize in advance...

Anonymous — Tue, 11 Dec 2012 20:00:07 GMT

Silly simulator!

Re: Stupid Question Alert: I apologize in advance...

Shogun — Tue, 11 Dec 2012 20:52:58 GMT

The simulator is fun to play with, but I wouldn't take it to heart. I've seen some advice that I've followed, only to see little or no increase in scores.

Re: Stupid Question Alert: I apologize in advance...

Anonymous — Tue, 11 Dec 2012 22:36:10 GMT

That's not a silly question at all! The thing that most people don't realize is that even if you pay your entire amount on your card on or after the due date and your balance is now $0...it won't reflect on your credit score until the NEXT month. If you want to see an immediate increase on your score where your credit cards are concerned, you MUST pay them BEFORE the due date. Even if it's one day before the date that it's due, you'll see an increase in your score and a decrease in your utilization in a week or two once they update the 3 bureaus. I did not know this until I stumbled across this knowledge on the net. I now pay off or nearly pay off my credit cards every month before the due date. My scores went up upwards of 50 points when I decreased my utilization. I only have 2 CC with 300 limits, but 50 points is 50 points, right?

Re: Stupid Question Alert: I apologize in advance...

Anonymous — Wed, 12 Dec 2012 01:21:13 GMT

Thanks for the tip!