@Anonymous wrote:Revolvers 2 of 9 cards with balance 28,900 available 12% usage, this will be 1% on one card later this month.
Loan Debt 50k, 5 year loan paid off, one for 13.5k opened 2 1/2 years ago and 50% owed, one auto 16k 1 year old 80% owed, one 19.5k 6 months old and 95% owed. No missed payments
I thinking to maximize get to AZEO then pump a couple grand a month into the newest loans. Financially they are low low interest rates vs the oldest being a couple points higher, so it seems silly but I need the oldest to stay on my report it appears. I have several loans that were paid on time dating all the way back to 2010-2021 and I guess I was hoping even though the Auto loan was paid off, that I had since 2016, wouldn't affect the point total that much. At this point I guess I'm asking how quick is the bounce back...
You lost points due to the change in aggregate loan utilization-- not the age of your accounts as closed accounts continue to factor into the age metrics for as long as they remain on your reports. That's why @Anonymous was asking about your loan balances before and after payoff - to determine if/how much aggregate util increased once one loan was paid/closed.
You need to provide total original loan amount / total balances before payoff and then remaining total original loan amount / remaining total balances after payoff.
The points lost from increased loan util won't return until aggregate loan util is decreased again (though your scores could rise for other, unrelated reasons). For the sake of finances, it makes sense to throw your money at the highest interest loan - no point in wasting money on the interest if you don't have to, and certainly not for the sake of FICO.
If your lenders allow you to pay in advance and push your payments out into the future (as opposed to shortening the term of the loan) then you could pay all loans down to under 9% aggregate util (but above $0) to get the largest score boost for the remaining term of the loans. But once the loans are finally paid off, you will lose points again for having no active installment.
@Anonymous wrote:Seems like a Fico 8 issue more than others, I didn't take that hit on the mortgage score which is the relief since I sold a house last year and building now. My scores are still good so I'm not that concerned with any besides mortgage and hopefully the AZEO will improve that as well. Crazy thing about FICO, when you start closely watching all of a sudden point drops become big issues to you but maybe not in the overall lenders mind when scores are good.
Yeah exactly - paying off a debt is not an issue to lenders. Finances over FICO.
Getting your overall revolving util below 9% and azeo should work out nicely for you scorewise.
Good luck with the new build!
@Anonymous wrote:So an auto loan gets paid off and lost 12 points on Fico 8 (749-737, it was my oldest @ 5 years that hadn't been paid off. I have 2 others one 3 years old and one less than a year. My question is I'm in debt reduction mode and have 9 Revolvers 2 have a balance and will be at AZEO in a month. Not touching oldest loan for a while but my question is how long should it take to get that Fico 8 back up, I was hoping to have it over 760 with AEZO but now not sure that's possible now.
Once your aggregate installment loan utilization gets down to 9% your FICO 8's and 9's will bounce up.
