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Advice Needed

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Established Contributor

Advice Needed

Hi Team,

 

I have a few BTs going on (Gotta Love NF and their 0% BTs).  I have a few thousand each month to pay on CCs.  So I need some advice, on which accounts to pay.  Current F'08 scores are 700-720.  I recently bought a new car at 0% and a personal loan at 4% to pay a CC that I had a heavy purchase.  I opened 5 new CC accounts: Apple (cuz its cool), FNBO (for 5% off gas), NF (3rd card 0%), BECU (cuz she was easy and I like them easy), Citi Double Cash (cuz its double cash). 

 

I have another NF card at 25K that is 0 bal so I could take 2 current card balance and put it on NF, then pay $5000 this month to get it  to report 20K/25K (80%).  I am not really concerned about my scores at this point; however, I would like to maximize my score.  Why?  Well just because, I guess.  I have a minor in statistics so it is curious for me.

 

The question is: to maximize my score; 1) should I consolodate 2 of the existing CCs to 1 CC with the same 85% UTIL.  So 4 cards report 85% instead of 5 cards reporting 85%?  No real financial savings (0%) advantage, but could be a score increase(?).  2) Try to pay off all 4 cards to below 80% UTIL? (possible 79.9 theshold?) 3) Pay 2 new installment loans down to some threshold (say 90 or 90%)?

 

CC Accounts (all accounts 0% BT for all of 2020) current balances:

#1: 20K/25K = 80%

#2: 8.5K/10K = 85%

#3: 10K/13K = 77%

#4: 6.7K/7.9K = 85%

12 other CC/retail cards: 0/174K

Total Util:  45.2K/230 = 20%

 

5 Installment Loans:

#1 Mortgage 55K/85K = 65%

#2 Car: 30K/40K = 75%

#3 New Car: 30K/30K = 100%

#4 New P/L: 20K/20K =100%

#5 (3) SL: 7.5K/45K = 17%

Total Installment UTIL: 135K/220K = 61%

 

F08 Scores 700~720.  The 2 new installment loans reported with less than 5 point drop.  None of the new CCs reported.  When they do report, they will have 0 balance but my AAOA will take a hit from 6 years to 5.2 years.  I am not sure if I will take a hit for reduced AAOA, but I will keep a close eye on the daily reporting.

 

Here are some other data points:

AAOA: 6 years

AoOA: 14 years

BK7 2011 (no other baddies)

2 new installment loans, 5 new CC:  Opened in late DEC/Early JAN20.

 

F'08 DEC19: EQ709, EX697, TU720; Clean since BK7 D/C 6/2011
6 REPLIES 6
Highlighted
Frequent Contributor

Re: Advice Needed

Someone else will comne along with an answer to your specific ask (maximize your score). However, allow me to provide an alternative view.

 

  • Scores are important solely to get credit when needed.
  • Finances > credit score. Meaning: Do what makes the best financial sense. It is self-defeating to pay more in interest to stroke one's ego.

Message 2 of 7
Highlighted
Super Contributor

Re: Advice Needed


@cem13 wrote:

Hi Team,

 

I have a few BTs going on (Gotta Love NF and their 0% BTs).  I have a few thousand each month to pay on CCs.  So I need some advice, on which accounts to pay.  Current F'08 scores are 700-720.  I recently bought a new car at 0% and a personal loan at 4% to pay a CC that I had a heavy purchase.  I opened 5 new CC accounts: Apple (cuz its cool), FNBO (for 5% off gas), NF (3rd card 0%), BECU (cuz she was easy and I like them easy), Citi Double Cash (cuz its double cash). 

 

I have another NF card at 25K that is 0 bal so I could take 2 current card balance and put it on NF, then pay $5000 this month to get it  to report 20K/25K (80%).  I am not really concerned about my scores at this point; however, I would like to maximize my score.  Why?  Well just because, I guess.  I have a minor in statistics so it is curious for me.

 

The question is: to maximize my score; 1) should I consolodate 2 of the existing CCs to 1 CC with the same 85% UTIL.  So 4 cards report 85% instead of 5 cards reporting 85%?  No real financial savings (0%) advantage, but could be a score increase(?).  2) Try to pay off all 4 cards to below 80% UTIL? (possible 79.9 theshold?) 3) Pay 2 new installment loans down to some threshold (say 90 or 90%)?

 

CC Accounts (all accounts 0% BT for all of 2020) current balances:

#1: 20K/25K = 80%

#2: 8.5K/10K = 85%

#3: 10K/13K = 77%

#4: 6.7K/7.9K = 85%

12 other CC/retail cards: 0/174K

Total Util:  45.2K/230 = 20%

 

5 Installment Loans:

#1 Mortgage 55K/85K = 65%

#2 Car: 30K/40K = 75%

#3 New Car: 30K/30K = 100%

#4 New P/L: 20K/20K =100%

#5 (3) SL: 7.5K/45K = 17%

Total Installment UTIL: 135K/220K = 61%

 

F08 Scores 700~720.  The 2 new installment loans reported with less than 5 point drop.  None of the new CCs reported.  When they do report, they will have 0 balance but my AAOA will take a hit from 6 years to 5.2 years.  I am not sure if I will take a hit for reduced AAOA, but I will keep a close eye on the daily reporting.

 

Here are some other data points:

AAOA: 6 years

AoOA: 14 years

BK7 2011 (no other baddies)

2 new installment loans, 5 new CC:  Opened in late DEC/Early JAN20.

 


The most important thing you could do to improve your scores is to get your overall revolving utilization to 8.9% or less, and your individual revolving account utilization in all accounts to report at 28% or less.


Total revolving limits 644000 (568000 reporting)
FICO 8's EQ 710 TU 733 EX 717



Message 3 of 7
Highlighted
Community Leader
Senior Contributor

Re: Advice Needed

You should be able to show a balance of up to 22k on the NFCU card without changing the utilization portion of your score. There'd be a possible ding for the additional card with a positive balance.

Message 4 of 7
Highlighted
Established Contributor

Re: Advice Needed


@HeavenOhio wrote:

You should be able to show a balance of up to 22k on the NFCU card without changing the utilization portion of your score. There'd be a possible ding for the additional card with a positive balance.


So you are saying there is a hard theshold at 89% individual utilization, which I understand.  Are we sure we know where the next theshold is?

F'08 DEC19: EQ709, EX697, TU720; Clean since BK7 D/C 6/2011
Message 5 of 7
Highlighted
Super Contributor

Re: Advice Needed


@cem13 wrote:

Hi Team,

 

I have a few BTs going on (Gotta Love NF and their 0% BTs).  I have a few thousand each month to pay on CCs.  So I need some advice, on which accounts to pay.  Current F'08 scores are 700-720.  I recently bought a new car at 0% and a personal loan at 4% to pay a CC that I had a heavy purchase.  I opened 5 new CC accounts: Apple (cuz its cool), FNBO (for 5% off gas), NF (3rd card 0%), BECU (cuz she was easy and I like them easy), Citi Double Cash (cuz its double cash). 

 

I have another NF card at 25K that is 0 bal so I could take 2 current card balance and put it on NF, then pay $5000 this month to get it  to report 20K/25K (80%).  I am not really concerned about my scores at this point; however, I would like to maximize my score.  Why?  Well just because, I guess.  I have a minor in statistics so it is curious for me.

 

The question is: to maximize my score; 1) should I consolodate 2 of the existing CCs to 1 CC with the same 85% UTIL.  So 4 cards report 85% instead of 5 cards reporting 85%?  No real financial savings (0%) advantage, but could be a score increase(?).  2) Try to pay off all 4 cards to below 80% UTIL? (possible 79.9 theshold?) 3) Pay 2 new installment loans down to some threshold (say 90 or 90%)?

 

CC Accounts (all accounts 0% BT for all of 2020) current balances:

#1: 20K/25K = 80%

#2: 8.5K/10K = 85%

#3: 10K/13K = 77%

#4: 6.7K/7.9K = 85%

12 other CC/retail cards: 0/174K

Total Util:  45.2K/230 = 20%

 

5 Installment Loans:

#1 Mortgage 55K/85K = 65%

#2 Car: 30K/40K = 75%

#3 New Car: 30K/30K = 100%

#4 New P/L: 20K/20K =100%

#5 (3) SL: 7.5K/45K = 17%

Total Installment UTIL: 135K/220K = 61%

 

F08 Scores 700~720.  The 2 new installment loans reported with less than 5 point drop.  None of the new CCs reported.  When they do report, they will have 0 balance but my AAOA will take a hit from 6 years to 5.2 years.  I am not sure if I will take a hit for reduced AAOA, but I will keep a close eye on the daily reporting.

 

Here are some other data points:

AAOA: 6 years

AoOA: 14 years

BK7 2011 (no other baddies)

2 new installment loans, 5 new CC:  Opened in late DEC/Early JAN20.

 


Ok then. That make sense. #HeadScratcher. Like @SouthJamaica said and not to repeat. As you pass these thresholds your scores will go up. Known thresholds are 88.9%, 68.9%, 48.9%, 28.9%, 8.9% on your cards. Theres some stats for ya. Your getting nailed for having all these maxed out accounts, new accounts,ect. Hit the brakes! Rather simple. Stop charging and start paying.  No more apps till 2021. No other way around it.





My posts are JMHO. My siggy is not to brag at all. Just sharing my experiences after learning here from rebuild to recovery after BK DC @ 540's. And to show fellow members what can be accomplished when you do it right and play the FICO Credit Game.
Message 6 of 7
Highlighted
Senior Contributor

Re: Advice Needed

You shouldn't see any gain from installment util until under 8.9% aggregate, so yes, attack revolving util, which makes a huge portion of your score.

Revolving you get dinged for aggregate and individual, with aggregate being the big dog. Ideal for aggregate is <8.9%, as already stated. Individual is believed to start dinging at 28.9%, so under that is ideal.

@FireMedic1 gave you the thresholds, and you've got a minor in stat, so attack!










(Forgive typos, mobile.)(Everything said is Just IMHO.)
Scores updated DEC'19.

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? (clean/dirty), Number of accounts open and closed on CRs (thick/thin), AoOA? (aged/nonaged), AoYR-Age of Youngest Revolver (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/aged/new accounts, with open loan on record.
If you don't know where you fall, just list whether you have any baddies, your number of open and closed accounts, AoOA, AoYR and whether you have a loan on record.
For utilization questions, list individual and aggregate utilizations, revolving and installment. please.
Message 7 of 7
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