topic Re: Please help me hit 790+ asap in Rebuilding Your Credit

Please help me hit 790+ asap

ss98 — Fri, 22 Dec 2023 00:43:48 GMT

Hi All,

Current FICO (8) is 732, I have to hit 790+ asap to get the best refinance rate (FYI, current FICO (3) is 744 - not sure which one matters for best rates)

No auto or student loan other than a mortgage, no missed payment

I have put down my payments in bold below that's yet to be reflected in credit score

Aggregate Utilization : 26% - New utilzation 17.78%

10 out of 19 cards have 0 balance

Card 1 : 38% utilzation - paid off

Card 2: 64% utilzation - paid off

Card 3: 29% utilzation - paid off

Card 4: 1% utilzation - paid off

Card 5: 79% utilzation - 48% utilization after payment

Card 6: 79% utilzation - 64.8% utilization after payment

Card 7: 45% utilzation

Card 8: 11% utilzation (however it increased to 27% as of now as this is the one I'm currently using)

Card 9: 12% utilzation

Based on this, could you guys suggest which ones I should work on now if those recent payoffs don't get me the boost I need? All the cards with balances have 0 apr.

Thanks!

Re: Please help me hit 790+ asap

GZG — Thu, 21 Dec 2023 19:51:05 GMT

@ss98 wrote:
Hi All,

Curren FICO (8) is 732, I have to hit 790+ asap to get the best refinance rate

No auto or student loan other than a mortgage, no missed payment

Aggregate Utilization : 26%
10 out 19 cards have 0 balance

Card 1 : 38% utilzation - just paid off - not reflected in my score yet
Card 2: 64% utilzation - just paid off - not reflected in my score yet
Card 3: 29% utilzation - just paid off - not reflected in my score yet
Card 4: 1% utilzation - just paid off - not reflected in my score yet
Card 5: 79% utilzation
Card 6: 79% utilzatoin
Card 7: 45% utilzation
Card 8: 11% utilzation (however it increased to 27% as of now as this is the one I'm currently using)
Card 9: 12% utilzation

Based on this, could you guys propose which ones I should work on now if the recently paid off cards don't get me the boost I need? All the cards with balances have 0 apr offer.

Thanks!

get cards 5 and 6 down below 48.9%, I imagine is the next step

Re: Please help me hit 790+ asap

ss98 — Thu, 21 Dec 2023 19:58:17 GMT

GatoradeZeroGuy Thanks. Based on the recent payoffs, is it possible to guess where I'm gonna land (from 732)? As all the existing balances have 0 apr, I certainly don't want to overdo it Thanks.

Re: Please help me hit 790+ asap

pizzadude — Thu, 21 Dec 2023 20:01:37 GMT

@ss98 wrote:

Based on the recent payoffs, is it possible to guess where I'm gonna land (from 732)? As all the existing balances have 0 apr, I certainly don't want to overdo it Thanks.

Which lender is requiring you to hit 790 to get the best rates ? This is a mortgage refi ?

Re: Please help me hit 790+ asap

ss98 — Thu, 21 Dec 2023 20:04:02 GMT

pizzadude

WF - yes mortgage refi. Thanks.

Re: Please help me hit 790+ asap

CYBERSAM — Thu, 21 Dec 2023 20:06:34 GMT

Go AZEO for couple of months, that alone should boost you 30+ points.

Re: Please help me hit 790+ asap

RSX — Thu, 21 Dec 2023 20:17:17 GMT

classic case of FICO OR Finances

since the lender doesn't see the 0% apr - they just see the Util % - you need to focus on the util %

since you are choosing FICO this time (makes sense) you are going to have to paydown more of the CC's even though it is 0%

i don't know how many months you have to test the scoring updates, but i would think all CCs should be below 50% to give you some better chances at the 790 goal

Re: Please help me hit 790+ asap

CreditCuriosity — Thu, 21 Dec 2023 20:20:55 GMT

790 seems like a weird score for best rate on refi. Shold still be middle score right?

Re: Please help me hit 790+ asap

ss98 — Fri, 22 Dec 2023 00:41:59 GMT

Hi All,

Thanks for your help. I have captured all the payments in bold that I have made so far. Do you think I need to do more to hit 790+?

Thank you!

Re: Please help me hit 790+ asap

JoeRockhead — Fri, 22 Dec 2023 16:27:51 GMT

I think your best shot at getting to where you want to be is going to be to pay down the cards that are still reporting higher UTI.

No individual balances over 28.9% (under 9% would be better) and no more than 3 cards with a balance (only because you have so many accounts), with a targeted aggregate of under 5% will give the max points.

I don't think anyone has asked but what are the ages of your revolving accounts as there are points awarded at certain yearly thresholds as well for such things as the age of your newest revolver, average age of accounts (AAoA) reaching 7.5 years etc...

Re: Please help me hit 790+ asap

ss98 — Fri, 22 Dec 2023 16:26:01 GMT

JoeRockhead Thanks a lot - Agewise average age 10.5 yr (16 yr for the oldest one, but I do have a 1 month old card).

That brings up an interesting point. I'm trying to pay down some of those (don't have funds for all). Card 8 is the 1 month old one - should I take care of it now even though it has the lowest UTI out of these 3? Thanks.

Card 5: 79% utilzation - 48% utilization after payment

Card 6: 79% utilzation - 64.8% utilization after payment

Card 8: 11% utilzation (however it increased to 27% as of now as this is the one I'm currently using)

Re: Please help me hit 790+ asap

Thomas_Thumb — Fri, 22 Dec 2023 16:53:48 GMT

@ss98 wrote:
Hi All,

Thanks for your help. I have captured all the payments in bold that I have made so far. Do you think I need to do more to hit 790+?

Thank you!

Fico looks at aggregate utilization, highest individual card utilization and both number of accounts/percent of cards with balances. What you have done may gain you 20 more points.

As a minimum for 790 you need to pay another card to zero so less than 50 percent report balances. Also, all cards that have a balance will almost certainly need to be under 49 percent utilization.

Not sure which version of Fico they are using. The older versions are more sensitive to new accounts and number of cards with balances. Those versions score lower on average than Fico 8 for profiles above 720.

In order to get score above 790 I suspect you will need to get aggregate utilization under 9 percent and drop cards reporting a balance to 3. Reducing highest card utilization to under 29 percent (from under 49) may also be necessary even if aggregate is below 9 percent.

The above guestimates assumes you have no major derogatories on file. At most, a 30 day late aged 5 or more years.

Side note: Getting a new revolving account typically results in a 15 to 20 point penalty - unless you are already in the penalty box from a previous new account. That penalty lasts 12 months although severity may lessen after 6 months. That's why it I advise not getting new revolving accounts prior to an important loan application.

Re: Please help me hit 790+ asap

JoeRockhead — Fri, 22 Dec 2023 16:34:26 GMT

@ss98 wrote:
JoeRockhead Thanks a lot - Agewise average age 10.5 yr (16 yr for the oldest one, but I do have a 1 month old card).

That brings up an interesting point. I'm trying to pay down some of those (don't have funds for all). Card 8 is the 1 month old one - should I take care of it now even though it has the lowest UTI out of these 3? Thanks.

Card 5: 79% utilzation - 48% utilization after payment
Card 6: 79% utilzation - 64.8% utilization after payment
Card 8: 11% utilzation (however it increased to 27% as of now as this is the one I'm currently using)

No, the system doesn't care what the age is of the card in connection with the balance. Age is a separate scoring metric. I would focus on the highest UTI card then onto the next highest and so on. Keep in mind the scoring thresholds (at this point) of 49%, 29% 9% and go after the easiest ones first. Hope that makes sense

Re: Please help me hit 790+ asap

RSX — Fri, 22 Dec 2023 16:49:44 GMT

Age wise average age 10.5 yr (16 yr for the oldest one, but I do have a 1 month old card).

The ship on this one has already sailed, but prior to a mortgage or mortgage refi, it is best to avoid any new accounts for the year leading up to it

i think you should wait until all your paydowns report and see what is left to do

Re: Please help me hit 790+ asap

ss98 — Sat, 23 Dec 2023 16:00:38 GMT

FYI,

Card 2: 64% utilzation - paid off - Aggr. Uti is 20% (from 26%)

This one made it to the bureau - I'm at 744 now (12 pt increase) - I guess that's for crossing two individual thresholds. I have a long way to go - I'll keep you guys posted.

Re: Please help me hit 790+ asap

ss98 — Fri, 29 Dec 2023 15:10:01 GMT

Card 2: 64% utilzation - paid off - (Aggr. Uti 20%) - 12pts gain/744

New update

Card 4: 1% utilzation - paid off - no change

Card 8: 11% utilzation (paid down - 8% utilization, Aggreate uti 19%) - 9pts gain/753

Last one was surprising even though I didn't cross any individual or aggregate utilzation threshold.

Re: Please help me hit 790+ asap

Thomas_Thumb — Fri, 29 Dec 2023 20:26:38 GMT

Do you have an AMEX charge card? If so, EX score 2 looks at last statement balance/high balance as a utilization metric. High balance shown on your credit report and represents the largest statement balance you reported on the card. The AMEX POT limit is not used. EX score 3 likely ignores an AMEX charge card because it is based on the Fico 04 algorithm vs Fico 98 algorithm for EX score 2.

Mortgage lenders primarily use EX score 2 along with TU score 4 and EQ score 5.

Re: Please help me hit 790+ asap

ss98 — Tue, 02 Jan 2024 00:45:08 GMT

I don't have any amex charge card.

Btw,

Card 1 : 38% utilzation - paid off

This one made it to the bureau - was really hoping for a 5pt gain at least - no luck there! It was a line of credit, by the way.

Card 2: 64% utilzation - paid off - (Aggr. Uti 20%) - 12pts gain/744

Card 4: 1% utilzation - paid off - no change

Card 8: 11% utilzation (paid down - 8% utilization, Aggreate uti 19%) - 9pts gain/753

Card 1 : 38% utilzation - paid off - Aggreate uti 18.66%)- no change

Re: Please help me hit 790+ asap

Thomas_Thumb — Tue, 02 Jan 2024 01:46:40 GMT

With your latest update, how many cards still have balances and what are the utilizations on each?

Your new account with 1 month age is likely costing you 20 points. That will make it difficult to reach 790. The best you can do is to pay off all cards but one with the card reporting being under 9% utilization. That could gain you another 15-25 points - imo.

Re: Please help me hit 790+ asap

ss98 — Tue, 02 Jan 2024 01:57:59 GMT

6 cards (out of 19) still have balances on the latest report (18.66% overall uti)

1. Card 3: 29% utilzation - (paid off, not posted yet)

2. Card 5: 79% utilzation - (paid off, not posted yet)

3. Card 6: 79% utilzation - (48.11% uti, not posted yet)

4. Card 7: 45% utilzation

5. Card 8: 8% utilzation

6. Card 9: 12% utilzation

Overall uti. will drop to 10.31% once these 3 get posted - currently @ 753

Thanks!