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Utilization/Paydown for Highest Impact

KristinaQ86
Member

Utilization/Paydown for Highest Impact

Hi All!

Looking to improve my scores significantly over the next 6 months in hopes of mortgage approval. I know there are a ton of variables, but i have about 90% utilization across 6 cards right now, total debt is only about $3k... if im looking at biggest improvement over a 6 month span, would i be best off to AZEO ASAP and report those lower utilization numbers consistently over a few months, or pay down to AZEO with large payments, but divided over the next 5 months?

My gut says pay them all down ASAP (i have a bonus coming next month and can wipe them out) but simulators are showing a much better score impact with say $600 payments monthly for 5 months? Im not talking about the cost of doing it monthly/paying additional interest, purely on if the impact to my scores improving would be greater one way or the other?

Thanks!

Message 1 of 6
5 REPLIES 5
RSX
Valued Contributor

Re: Utilization/Paydown for Highest Impact

pay them down asap - use the entire bonus when you get it

 

depending on when each of these 6 accts close (statement) then it may take up to 2 months for all balances to be reflected at zero

 

so the sooner the better

 

congrats on the bonus and the payoff plan

Dec 16/2019. EX. 721. EQ. 723. TU 746
Dec 29/2020 EX. 729 EQ. 723 TU 746
Dec 29/2021 EX. 734 EQ. 739 TU 746
June 15/2022 EX. 709 EQ. 684 TU 710
Inq. EX 3 EQ 4 TU 3 - - CC 5x24, 2x12
Amex BCP $32k - Apple GS $19k - BMW/Elan $14k - Cap1 QS $16.7k - Chase Amazon $13.6k - Chase Bonvoy Boundless $10k - Chase United Club Infinite $26k - Citi DC $14.5k - CreditUnion1 $9k - DiscoverIT $25.5k - HSBC Gold - $13k - PayBoo - $7.6k - Penfed Gold - $12.5k - USB AltitudeGO -$16k- USBank Cash+ -$24k - PenFed LOC - $20k - USB LOC - $8k
Message 2 of 6
KristinaQ86
Member

Re: Utilization/Paydown for Highest Impact

Thank you! That was my initial thought as well, guess i just needed some validation! Smiley Happy

Message 3 of 6
RSX
Valued Contributor

Re: Utilization/Paydown for Highest Impact

no worries - happy to help

 

***i missed the part about the Simulator - in short - most of them suck and should not be used....

Dec 16/2019. EX. 721. EQ. 723. TU 746
Dec 29/2020 EX. 729 EQ. 723 TU 746
Dec 29/2021 EX. 734 EQ. 739 TU 746
June 15/2022 EX. 709 EQ. 684 TU 710
Inq. EX 3 EQ 4 TU 3 - - CC 5x24, 2x12
Amex BCP $32k - Apple GS $19k - BMW/Elan $14k - Cap1 QS $16.7k - Chase Amazon $13.6k - Chase Bonvoy Boundless $10k - Chase United Club Infinite $26k - Citi DC $14.5k - CreditUnion1 $9k - DiscoverIT $25.5k - HSBC Gold - $13k - PayBoo - $7.6k - Penfed Gold - $12.5k - USB AltitudeGO -$16k- USBank Cash+ -$24k - PenFed LOC - $20k - USB LOC - $8k
Message 4 of 6
SouthJamaica
Mega Contributor

Re: Utilization/Paydown for Highest Impact


@KristinaQ86 wrote:

Hi All!

Looking to improve my scores significantly over the next 6 months in hopes of mortgage approval. I know there are a ton of variables, but i have about 90% utilization across 6 cards right now, total debt is only about $3k... if im looking at biggest improvement over a 6 month span, would i be best off to AZEO ASAP and report those lower utilization numbers consistently over a few months, or pay down to AZEO with large payments, but divided over the next 5 months?

My gut says pay them all down ASAP (i have a bonus coming next month and can wipe them out) but simulators are showing a much better score impact with say $600 payments monthly for 5 months? Im not talking about the cost of doing it monthly/paying additional interest, purely on if the impact to my scores improving would be greater one way or the other?

Thanks!


Go to AZEO ASAP.

 

 


Total revolving limits 699000 (597000 reporting) FICO 8: EQ 718 TU 721 EX 698

Message 5 of 6
805orbust
Established Contributor

Re: Utilization/Paydown for Highest Impact

The reason the simulator shows a better result is because an increase in the age/longevity of your profile is a positive. It's hard to measure it precisely, however, every simulator I've ever encountered showed an additional benefit just for the additional aging. Even when all other factors were equal. This is especially true of the simulator tool here on MyFico, which I still use and find to be in the ballpark mostly.


Message 6 of 6
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