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Credit Simulator

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Established Member

Credit Simulator

Hi!  Does anybody know if there is a credit simulator that woudl show if my score goes up or down paying off a car?  The payoff is 15k.  TIA! 

Message 1 of 10
9 REPLIES 9
Super Contributor

Re: Credit Simulator

I suggest not using similators as they can be very hit or miss.

 

Is the car loan your only installment loan?  If so, your scores will drop once it's reported as paid off in full.

 

If you have another installment loan currently, paying off the loan will increase your scores.  I would imagine that if the payoff is $15k that the loan balance is pretty high currently unless it was a $100k car or something... Assuming $15k is still a significant portion of the loan, paying it off IF you have another installment loan could yield a decent point gain.  If it's $15k on a $100k car loan, it's less significant as the percentage of the original loan balance is smaller.

Message 2 of 10
Established Member

Re: Credit Simulator

Thanks so much!

 

I am looking to pop my score up from the current 654 and I want to get to 700.  I have stock I can sell, so I am trying to figure out what I should pay off.   I have 3 ccards totalling 9500, or I can pay off the car @ 15k.  I do have another car payment still for the car I am going to keep.  What do you think?

 

Thank you! 

Message 3 of 10
Established Member

Re: Credit Simulator

I would pay off the 3 cards if you are accruing interest on them. I would imagine the credit cards have higher interest than the auto loan. Then throw the leftover 5 at the car. But thats just me, I go by interest when deciding which debts to pay off.

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Message 4 of 10
Established Member

Re: Credit Simulator

Thanks so much! 

Message 5 of 10
Super Contributor

Re: Credit Simulator

What was the original balance of the loan which you own $15k on?

 

Taking down the 3 revolvers first is probably the best bet not only for the interest savings, but because you'll then get 3 accounts into good standing rather than worrying about just 1 from the auto loan.

Message 6 of 10
Senior Contributor

Re: Credit Simulator

As stated above, don't rely on simulators and educate yourself so you can assess your own reports and how changes would impact your credit.  You need to be able to do this to manage and improve your credit.

 

Your question was answered above but don't overlook previous threads as a resource.  If any site's search feature isn't working for you then try a site restricted Google search.  Here's an example relevant to your question:

https://www.google.com/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=pay%20off%20auto%20scor...

 


@eBayfan wrote:

@I am looking to pop my score up from the current 654 and I want to get to 700.  I have stock I can sell, so I am trying to figure out what I should pay off.   I have 3 ccards totalling 9500, or I can pay off the car @ 15k.  I do have another car payment still for the car I am going to keep. 


Credit scoring is all about risk assessment.  Revolving debt is seen as a bigger risk than installment debt and that's why Revolving Utilization has a much bigger impact than Balance to Loan ratio for installments.  You need to calculate the Revolving Utilization for each card and overall and then calculate how much your Revolving Utilization would drop with the payment you have in mind.  Consider that the generally suggested max for Revolving Utilization is 30%.  If you're above that then definitely get it down.  However, keep in mind that 30% is far from ideal and that lower is generally better.  If you're not paying every statement balance in full then work on getting to that point and don't incur revolving debt.

 

You also need to review your reports.  If you have derogs then definitely see what you can do to address them if you want to improve your scores.  Hit the Rebuilding subforum and carefully research.

Message 7 of 10
Established Contributor

Re: Credit Simulator

I have had a similar situation to where I had balances on both credit cards & an auto loan. You're revolving accounts, being your credit cards, have more impact on the FICO score than your installment loan does. So before I elaborate any further there are two things that you need to be aware of on installment loans (auto). There are different risk codes which include amount owed on account is too high, current balance to original amount is too high. Those two will go away when you pay down 35% of the original balance to which you need to take into account the accumulating interest.  Then if you pay off your auto loan the risk code will come back as lack of recent installment loan information. So I wanted to give you the haeds up on that. And on your credit cards the credit risk codes will come back as the following, amounts owed on revolving accounts is too high, ratio of balance to limit on revolving accounts is too high, too many accounts with balances, & amounts owed on accounts is too high. I have a list of the codes to which i looked them up for you. Other than what I state here allow your accounts to age.

 

How many inquiries are on your credit report that you have applied for in the last 12 months?????    How many accounts have you opened within the last year???

 

From experience here is the bottom line plan that will help you meet your goal. And of course you did not state if you have any adverse (negative) accounts.

 

1.       Pay off two of the three credit cards. That way you do not get your score dinged for having balances on multiple revolving accounts.

2.       On the third credit card leave a balance of around $ 10. This will also allow you to barely have to make an interest payment as well as bring your score up.

3.       Take the remaining amount that you have & pay down your auto loan. If you can pay the balance to at least 35% of the original loan that will help the score. if the original amount was $ 20,000 then you need to have the amount down to $ 13k. Better yet if you can bring down the balance to 50% of the original loan or to a new balance of $ 10k.

4.       If you have had any inquiries to where you had applied for credit within the last 12 months, then keep track of the dates. For example Chase Bank pulled an inquiry on 08/04/2015 then pull a new report on 08/06/2016. It is always exactly one year from when you applied for credit or utilities. Even though inquiries stay on your credit reports for 24 months they only impact the Fico score for 12 months.

5.       Allow your accounts to age. As each trade line(account) ages the score will go up. But you will need to be patient. Does not happen overnight.

6.       ONLY APPLIES TO ADVERSE (NEGATIVE) ACCOUNTS. If you have any of these then be patient. As they age & get older tehy will have less of an impact on the Fico score.

7.       Do not apply for new credit or allow any other such as a utility company to pull a credit report.

 

 

 

Message 8 of 10
Established Contributor

Re: Credit Simulator

Here is a PDF list of the Fico score risk codes for Experian

 

https://www.figfcu.com/documents/fico/FICO%C2%AE%20Score%20Factors%20Guide%20-%20Experian.pdf

Message 9 of 10
Established Contributor

Re: Credit Simulator

This is actually an approved FICO score estimator from MYFICO. I also verified this with customer care over the phone. So click on get started & play around with in by trying different inputs. And it is based on your 100% complete honesty.

 

http://www.myfico.com/fico-credit-score-range-estimator/

Message 10 of 10
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