Affect on Score

[Anonymous]

Hello,

My name is David.  I have several credit cards and would like to list for you the credit limits, my current score and tell you last months balances compared to the balances that will be reported this coming month.  I would like your opinions as to what affect these actions will have on my score.

I will list 3 columns in this order.............CREDIT LIMIT, LAST MONTH BALANCE, NEW BALANCE

1500.00        1453.97          740.00

1750.00        1757.46          850.00

1500.00        1482.98          740.00

  900.00           854.79          440.00

  400.00           249.87          180.00

  500.00           450.42          240.00

5000.00         4904.23       4800.00

   400.00            382.93         180.00

As you can see we dropped the utilization to below 50% on most of the cards.  One we are not able to at this point.  Also, I just paid off a signature loan that was max owed $2000 and was paid off last month.  Monthly payment on that was $177.  

Other than the above.  I have an auto loan with Ford Credit.  It's four months old and in perfect standing.  Owe $23500 on that.  

Current scores are as follows

TU = 612

EX = 592

EQ = 597

Looking for a dramatic bump.  The TU score WAS 597 a week ago and ONE of the cards reported a balance change and TU jumped 15 points.  

What can I reasonably expect in a month when all of these balances report?

Thanks

David

[Anonymous]

any changes in the utilization should help with your score, but the ideal % is under 20. under 10% is even better if u can mange that. this only applies when everything else stay the same

r u looking for a mortgage anytime soon?

[Anonymous]

I am very aware of the "lower utilization - higher score" scenario.  I understand the cause and effect.  Yes we are in the process of rebuilding and do plan to obtain a mortgage soon.  We know where our score needs to be for that to happen.  

My question is simple.........what drop could I expect with the current paydown.  It was a step to get most cards below the 50% threshold.  Next, I want to pay all of the smaller ones off completely and snowball their payments into the larger one.  I know how to do all this and have a plan.  Question is merely about score.

Thanks.  

[Anonymous]

You will see the most drastic score improvements from not having any balance on 3/5ths of your revolving tradelines, and getting util down to 30% or less on that remaining 2/5ths.

Once you cross that bridge the next step is to only report balance of 1-9% on one single revolving tradeline.

[Anonymous]

---

@Anonymous wrote:

I am very aware of the "lower utilization - higher score" scenario.  I understand the cause and effect.  Yes we are in the process of rebuilding and do plan to obtain a mortgage soon.  We know where our score needs to be for that to happen.  

My question is simple.........what drop could I expect with the current paydown.  It was a step to get most cards below the 50% threshold.  Next, I want to pay all of the smaller ones off completely and snowball their payments into the larger one.  I know how to do all this and have a plan.  Question is merely about score.

Thanks.  

---

i dont think anyone will have an answer for that.  it also depend how thick your credit history is.  inq/AAoa/collections...etc

[taxi818]

Hard. to answer as you still have balances on every single card. of course overall is now under 50 percent. but don't forget about how many acounts that have balance. would have been better to pay the low limit cards down to 0. and a little less on the big balance cards. as that will take more time. and use a ladder approach. lower the balance. try to get it to 0 the quickest. so if half your cards had a zero balance. you will see bigger bump. with same amount of money you are paying down. so impossible to know. at least you saw 15 points with tu.

[Anonymous]

I think you'll see a pretty big bump. My experience has been 2-3 points for every 5% drop in utilization, but I only have a balance on one card so YMMV. You also had a lot of maxed cards that are no longer maxed. My approach would be to get that $4800/5000 card below 90% utilization so it's not maxed anymore, and then start knocking off the smaller balances and SD those cards until you're totally debt free.

[Anonymous]

Thank you all for your input.  

[Booboo71]

Also not all cards report monthly either.

[NRB525]

---

@Anonymous wrote:

Hello,

My name is David.  I have several credit cards and would like to list for you the credit limits, my current score and tell you last months balances compared to the balances that will be reported this coming month.  I would like your opinions as to what affect these actions will have on my score.

I will list 3 columns in this order.............CREDIT LIMIT, LAST MONTH BALANCE, NEW BALANCE

1500.00        1453.97          740.00

1750.00        1757.46          850.00

1500.00        1482.98          740.00

  900.00           854.79          440.00

  400.00           249.87          180.00

  500.00           450.42          240.00

5000.00         4904.23       4800.00

   400.00            382.93         180.00

As you can see we dropped the utilization to below 50% on most of the cards.  One we are not able to at this point.  Also, I just paid off a signature loan that was max owed $2000 and was paid off last month.  Monthly payment on that was $177.  

Other than the above.  I have an auto loan with Ford Credit.  It's four months old and in perfect standing.  Owe $23500 on that.  

Current scores are as follows

TU = 612

EX = 592

EQ = 597

Looking for a dramatic bump.  The TU score WAS 597 a week ago and ONE of the cards reported a balance change and TU jumped 15 points.  

What can I reasonably expect in a month when all of these balances report?

Thanks

David

---

Congratulations on reducing the balances that much that fast. It's an acomplishment!

Do you have any lates or bad situations in your past? The scores in low 600's look like something else is going on in the past?

Who are the cards with? Can you add the bank and card name to each row? Depending on which they are, there may be some steps you want to take to increase available credit lines to help with the utilization count.

And while you should see some bump at 50% utilization, there's more balances to pay down for the next significant increase in scores.