DEBT vs UTILIZATION

[tmoney]

     According to the fico simulator,  If I decrease my debt by 15,000 my score will increase @ 30 points. Does that esimate hold true

     if my credit limit increase by 15,000 with debt remaining the same.   Just curious if estimate is based solely on uti or other factors

[MT936]

in my opinion its based mainly on utilzation %, $15,000 is a lot of debt to have, if you were to pay it off, a 30 point increase sounds reasonable

[vanillabean]

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@tmoney wrote:

@     According to the fico simulator,  If I decrease my debt by 15,000 my score will increase @ 30 points. Does that esimate hold true

     if my credit limit increase by 15,000 with debt remaining the same.   Just curious if estimate is based solely on uti or other factors

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I wouldn't say the balance is a big deal, but utilization isn't everything.

[bdhu2001]

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@tmoney wrote:

@     According to the fico simulator,  If I decrease my debt by 15,000 my score will increase @ 30 points. Does that esimate hold true

     if my credit limit increase by 15,000 with debt remaining the same.   Just curious if estimate is based solely on uti or other factors

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If you increased you CLI instead of paying off 15K worth of debt, I don't think it will be the same 30 points. 5/25= 20%; 20/40 = 50%.  As you see, the utilization isn't the same even though we're talking about 15K.  In one, you decrease the numerator, in the other you increase the denominator.