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Would letting a balance report hurt my scores?

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Contributor

Would letting a balance report hurt my scores?

Hello everyone..
With the holidays coming up. I wanted to take advantage of Discover's 5% cash back for Walmart Amazon and Target.. I was looking to spend close to 1,000. My current credit limit with Discover is 14,500 at 0% until May.
I also have a personal loan with a balance of 500.. All my accounts are at 0 right now. Except discover.. carrying a 50 balance on the card.
FICO scores Ex 690 Trans 710 Eq 789
1 late from years ago on a closed now paid student loan.
Just wondering how much of a score drop I'll see if I pay the 1,000 off over time
Disc 14,500
Disc 2,200
Capital 9,000
Capital 1450
Walmart 5,500
PayPal extras 2,000
Barclay's 3,500
Target 2,600
Neiman Marcus 14,000
Penfed 5,000
Nfcu 1,500
Message 1 of 10
9 REPLIES 9
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Super Contributor

Re: Would letting a balance report hurt my scores?

If all of those other accounts are reporting a zero balance, I'd anticipate no score change at all.

 

You won't get anywhere near 8.9% individual OR aggregate utilization.

 

I think you're fine.

 

Good luck!



10/30/20 Mortgage scores: EX2 738, EQ5 724, TU4 no idea.
11/01/20 Fico 8: EX 754, EQ 752, TU 765.
11/04/20 Fico 9: EX 713, EQ 720, TU no idea...

Zero percent financing is where the devil lives...
Sitting in the garden behaving myself. #noinqs2020
Message 2 of 10
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Contributor

Re: Would letting a balance report hurt my scores?

Thank you.. I was worried about my score dropping.
Message 3 of 10
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Super Contributor

Re: Would letting a balance report hurt my scores?


@Madyun1982 wrote:
Thank you.. I was worried about my score dropping.

You're welcome.  Smiley Happy

 

Just to be clear, you are concerned about Fico scores, correct?  Your Fico scores won't change.

 

Vantage scores might... but nobody cares...  Smiley Wink



10/30/20 Mortgage scores: EX2 738, EQ5 724, TU4 no idea.
11/01/20 Fico 8: EX 754, EQ 752, TU 765.
11/04/20 Fico 9: EX 713, EQ 720, TU no idea...

Zero percent financing is where the devil lives...
Sitting in the garden behaving myself. #noinqs2020
Message 4 of 10
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Contributor

Re: Would letting a balance report hurt my scores?

😂😂😂 Yes my Fico.. Thanks to this site. I learned to pay my vantage score no mind.
Message 5 of 10
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Super Contributor

Re: Would letting a balance report hurt my scores?


@Madyun1982 wrote:
Hello everyone..
With the holidays coming up. I wanted to take advantage of Discover's 5% cash back for Walmart Amazon and Target.. I was looking to spend close to 1,000. My current credit limit with Discover is 14,500 at 0% until May.
I also have a personal loan with a balance of 500.. All my accounts are at 0 right now. Except discover.. carrying a 50 balance on the card.
FICO scores Ex 690 Trans 710 Eq 789
1 late from years ago on a closed now paid student loan.
Just wondering how much of a score drop I'll see if I pay the 1,000 off over time
Disc 14,500
Disc 2,200
Capital 9,000
Capital 1450
Walmart 5,500
PayPal extras 2,000
Barclay's 3,500
Target 2,600
Neiman Marcus 14,000
Penfed 5,000
Nfcu 1,500

No score drop at all.


Total revolving limits 653000 (575000 reporting)

Message 6 of 10
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Contributor

Re: Would letting a balance report hurt my scores?

Thanks for the reply..
I'm gonna try my best to not going over 1,000 in spend. Hopefully with black Friday I won't.. Lol
Message 7 of 10
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Established Contributor

Re: Would letting a balance report hurt my scores?

UTL thresholds on individual and separately, AGG revolvers is one thing that can impact your score.  But as noted above, if only 1 revolver reports a balance then you should see no negative score impact based on the amount you noted for that card and the total # of accts you have not reporting a balance.  Doesn't cross a threshold that should negatively impact your score. But note that in addition to those known thresholds, # of accounts reporting compared to the # of accts you have is another factor that could cause a score change.

 

I have a total of 13 open accts, 2 are loans (MTG and auto).  This will always represents 2 accts reporting.  When I have 3 CC also reporting (total of 5 accts reporting a balance) I see a ding in my score on a number of score models.  4 or less accts reporting seems to be my sweet spot based on the # of accts I have. 3 accts reporting is perfect for my MTG scores, which = AZEO.

 

 

FICO - 8: 11/19/20 AU 8 BC 8
FICO - 9: 11/19/20 AU 9 BC 9
F5,F4,F2 11/19/20 AU... BC...
Vantage 11/19/20
As of 11/19/20:
AoOA - 24Y8M | AoYA – 0Y0M | AAoA – 11Y6M
Open: 11 CC: (1 reporting 3.53% : 0.74% AGG UTL) | 1 PLOC | 1 MTG loan: 73.16% UTL
Closed: 1 MTG loan | 2 Auto loans | (EQ) 2 CC, (EX & TU) 1 CC
INQ: (EQ) 0/24 | (TU) 0/24 | (EX) 1/24
Message 8 of 10
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Super Contributor

Re: Would letting a balance report hurt my scores?


@Madyun1982 wrote:
Thanks for the reply..
I'm gonna try my best to not going over 1,000 in spend. Hopefully with black Friday I won't.. Lol

You can spend all you want. (Ooops may have caused a swipe monster) Pay it down before statement cut date. It's whats reported that matters. So you can spend $1500 now. Smiley Wink

Message 9 of 10
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Established Member

Re: Would letting a balance report hurt my scores?

Here was my recent situation

Barclays card $1000 CL, $700 balance, PIF, 6 point gain on FICO 8

Following month:
Marrick Bank $3100 CL, $2800 balance, paid down to $560, no change in score
Message 10 of 10
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