Credit Score

[Anonymous]

Why when I pay a large amout of my revolving debt it does not help as much as just paying about 1/3

[RobertEG]

Do you mean that is what you have been told, or what you have experienced?

What are the starting % utils?  If you pay 1/3 of a very large debt, the $$ outlay is greater than paying 1/3 of a very small debt.

Can you provide some examples of your experiences?

[pizzadude]

With revolving accounts, FICO scores you on your utilization ( how much you borrow against the limits ), and also on how many revolving accounts have balances.   

[Anonymous]

I have 1556 in credit card debt according to the fico simulator if I pay $500 I will get a greater increase in my score than paying 800 or 900

[Anonymous]

I am reducing my utilization. Will it affect me negatively if I do it to fast?

[haulingthescoreup]

The simulator isn't Gospel. It's a guide, nothing more.

You will not be penalized for paying your debt down fast, or even in one giant payment.

Sometimes it seems to suggest that dragging payments out will help you, but in fact, what it's saying is that paying off your debt AND then maintaining no debt and clean history for X amount of months will result in X score range. It doesn't meant that you should drag your debt out over time.

Good for you for reducing your util; actually, for reducing your debt. In the end, it's way more important to be healthy financially than to have optimum FICO scores. The exception would be if you're applying for a mortgage or something similar, but even then, most people find that improving their financial habits automatically improves their FICO scores.

[Anonymous]

I am trying to get a mortgage.

[marty56]

It will also lower your DTI which is great for a mortgage.

[Anonymous]

I am trying to do things that will have a big impact on my credit the fastest.

[JenniferinFL]

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@Anonymous wrote:
I am trying to do things that will have a big impact on my credit the fastest.

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Fastest is utilization if you have the cash.

My husband has three credit cards and one charge card. When he had no balance on two cards and owed 75% on one card, his score was 730. When he owed 60% of the credit limit on one card, 80% of credit limit on another card and $0 on the third, his credit score dropped to 695. He owed the same $ amount as before, it was just distributed differently. When a balance reported on all three cards, one at 10%, one at 5% and one at 75%, his score dropped to 684. Score changes based on the statement balance whenever the credit card companies report them.

In other words, with no other changes, credit can quickly change by 50 points just by changing utilization. One card reporting a balance between 1-9% is what most here seem to recommend.