Utilization/Paydown for Highest Impact

[Anonymous]

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!

[RSX]

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

[Anonymous]

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

[RSX]

no worries - happy to help

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

[SouthJamaica]

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@Anonymous 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!

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Go to AZEO ASAP.

[805orbust]

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.