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BLT impact on FICO Score!

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Valued Contributor

BLT impact on FICO Score!

I have 2 cards that are reporting high balance. 1st one has 48% UTI and 2nd with 54% UTI

I can BLT one to the other and have 76% and 0%. By doing this I’ll reduce some interest rate.

The question is how many points you guys think I would lose by having one card at 76% vs. two cards at 48% and 54% UTI?







           
6 REPLIES 6
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Established Contributor

Re: BLT impact on FICO Score!

I don't know the answer, but unless you have a short term need for a higher score, I'd go for less interest.

Scores: Spt 20: EX FICO8 831, TU FICO8 828, EQ FICO8 823
AoOA: closed: 36 years, open: 25 years; AAoA: 11.8 years
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Message 2 of 7
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Super Contributor

Re: BLT impact on FICO Score!


@CYBERSAM wrote:

I have 2 cards that are reporting high balance. 1st one has 48% UTI and 2nd with 54% UTI

I can BLT one to the other and have 76% and 0%. By doing this I’ll reduce some interest rate.

The question is how many points you guys think I would lose by having one card at 76% vs. two cards at 48% and 54% UTI?


I don't know if you would lose or gain, but either way I think the difference would be slight.


Total revolving limits 653000 (575000 reporting)

Message 3 of 7
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Established Contributor

Re: BLT impact on FICO Score!

Based on the Scoring Primer, it looks like there are thresholds for 30, 50, 70, 90, and 100% for individual cards. So one at 48% and the other at 54% could be better than one at 76%, but I'd guess with AZEO bonus and a single card at 76% (that you quickly pay down to under 70% if possible) you might do better than splitting the two. Aggregate utilization is also important, that's got 10% in addition to the other thresholds already mentioned.

 

That said, if you're doing large BTs, you might have other issues that are more important to address and I would agree with @FlaDude and focus on the actual costs vs FICO score here.

as of 10/13/20
Current Cards:
Message 4 of 7
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Valued Contributor

Re: BLT impact on FICO Score!

Aggregate utilization and AZEO would not be a factor here. BLT would save 4% on interest. But I can live with that if negative impact would be great from one card showing 75% UTL!







           
Message 5 of 7
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Established Contributor

Re: BLT impact on FICO Score!

How hard is it going to be to get than one card under 70% though? I'd say if it's easy the temporary downsides from being at 75% are short lived and you're less likely to get the "cards with balances" negative factor since it'd only be one card.
as of 10/13/20
Current Cards:
Message 6 of 7
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Regular Contributor

Re: BLT impact on FICO Score!


@CYBERSAM wrote:

I have 2 cards that are reporting high balance. 1st one has 48% UTI and 2nd with 54% UTI

I can BLT one to the other and have 76% and 0%. By doing this I’ll reduce some interest rate.

The question is how many points you guys think I would lose by having one card at 76% vs. two cards at 48% and 54% UTI?


At 76%, I believe you are considered maxed out.  My understanding is that FICO algorithm may penalize more for a maxed out card.

Starting Score: 550
Current Score: 652
Goal Score: 670


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Message 7 of 7
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