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New Here - Paid of 100% of Debt Today

baketress
Member

New Here - Paid of 100% of Debt Today

Today I am offically 100% debt free. I used my a commission payment to pay off $8,000.00 worth of debt.

 

I signed up on this site in order to keep an eye on my credit score that is currently 744. This score does not reflect my recent debt payments. How much can I expect my score to improve? Thanks in advance!

Current EQ Score: 789 (MAY 2011) ~ 744 EQ (APR 2011)
Current TU Score: 712 TU (APR 2011)
~100% Debt Free~ as of APR 2011
Message 1 of 13
12 REPLIES 12
guiness56
Epic Contributor

Re: New Here - Paid of 100% of Debt Today

It is extremely difficult to predict what a FICO score will be.

 

Utilization, AAoA, credit mix, negative information, payment history are all factors in the score.

Message 2 of 13
beamMEup
Moderator Emeritus

Re: New Here - Paid of 100% of Debt Today


@baketress wrote:

Today I am offically 100% debt free. I used my a commission payment to pay off $8,000.00 worth of debt.

 

I signed up on this site in order to keep an eye on my credit score that is currently 744. This score does not reflect my recent debt payments. How much can I expect my score to improve? Thanks in advance!


When you pull your new FICO score, please let everyone know how you made out!

 

There's lots of folks here who will want to know how your utilization, number of accounts reporting a balance, and your FICO score have changed!

 

Congrats!!!!

Just puttin' syrup on something, don't make it pancakes.
Message 3 of 13
Mustanglvr2006
Valued Contributor

Re: New Here - Paid of 100% of Debt Today

Are you saying that you will have a 0% util once the creditors report? If that's the case, from all the research I've done... that could actually hurt your score, you may want to show at least 1-9% util to see the best scores.

 

Hopefully a High Acheiver will chime in and correct me if I'm wrong.


Starting Score: 583
Current Score: 3-03-12-EQ-802 TU-806 EX-798 (EQ Beacon 9: 804 Lender Pull 3-08-12) All FICO's
Goal Score: 800+ across all three

Take the FICO Fitness Challenge


Message 4 of 13
baketress
Member

Re: New Here - Paid of 100% of Debt Today

Thanks! I will let you know once I get an update.

 

My credit history spans 13 years. I have no bankruptcies, collections, etc. I have two *negative* marks as follows.

 

1. 30 days late *once* in 2006

2. 30 days late *12 times*  - paid off in 2006

Current EQ Score: 789 (MAY 2011) ~ 744 EQ (APR 2011)
Current TU Score: 712 TU (APR 2011)
~100% Debt Free~ as of APR 2011
Message 5 of 13
baketress
Member

Re: New Here - Paid of 100% of Debt Today

Correct. I have $0 debt. I paid everything off.

Current EQ Score: 789 (MAY 2011) ~ 744 EQ (APR 2011)
Current TU Score: 712 TU (APR 2011)
~100% Debt Free~ as of APR 2011
Message 6 of 13
Mustanglvr2006
Valued Contributor

Re: New Here - Paid of 100% of Debt Today

I believe showing a 0% util will hurt your scores a little or a lot, not sure, I think you should make a small purchase 10-15 on ONE card and let that show on your report.

 

Again, hopefully a more knowledgable member will chime in.


Starting Score: 583
Current Score: 3-03-12-EQ-802 TU-806 EX-798 (EQ Beacon 9: 804 Lender Pull 3-08-12) All FICO's
Goal Score: 800+ across all three

Take the FICO Fitness Challenge


Message 7 of 13
haulingthescoreup
Moderator Emerita

Re: New Here - Paid of 100% of Debt Today

Congrats on the payoff, and welcome to the forums! Couple of questions:

 

1. Was the debt on revolving (CC, line of credit) or installment (car loan, student loan, mortgage) debt, or both?

 

2. How many accounts was the debt spread out over? --i.e., one car loan, 3 CC's, and a student loan versus just one CC

 

3. If any of the debt was on revolving accounts, what was your reported revolving util? (total revolving debt divided by total revolving credit limits)

 

I'm asking because installment debt doesn't affect your FICO scores as much as does revolving debt. And scores will also vary by how many accounts had balances out of your total number of accounts.

 

Your scores are great now, so you might not see a big jump, unless you had high revolving util. Also, if you allow every account to report $0, you will probably lose points. (Strange but true.) The same might happen if you wind up with no open installment accounts. Nevertheless, 0 debt beats FICO scoring any day.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 8 of 13
baketress
Member

Re: New Here - Paid of 100% of Debt Today

The debt was (5) revolving credit acounts and (1) CA Tax bill. The ratio of my revolving balances to credt limits was 37%. Does that make sense?

 

 

Current EQ Score: 789 (MAY 2011) ~ 744 EQ (APR 2011)
Current TU Score: 712 TU (APR 2011)
~100% Debt Free~ as of APR 2011
Message 9 of 13
Mustanglvr2006
Valued Contributor

Re: New Here - Paid of 100% of Debt Today

 


@baketress wrote:

The debt was (5) revolving credit acounts and (1) CA Tax bill. The ratio of my revolving balances to credt limits was 37%. Does that make sense?

 

 


I would def say to make a small purchase before they report (since they were all relvolving accts) just to show somwhere 1-9% util I think a $15 purchase would be good enough, go buy yourself a blu ray or dvd that you've been wanting.

 


Starting Score: 583
Current Score: 3-03-12-EQ-802 TU-806 EX-798 (EQ Beacon 9: 804 Lender Pull 3-08-12) All FICO's
Goal Score: 800+ across all three

Take the FICO Fitness Challenge


Message 10 of 13
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