Got my 1st FICO Score today!!

[MikeyMagic]

So my first FICO Score just came out on Experian and it is 653.

But here's the thing, my credit utilization percentage is 49% mainly from my PayPal Credit where I owe $1164 out of $1200. It also shows my Chase Freedom Rise Card shows a $65 balance out of a $500 CL, and I allowed an $85 balance to show on my Capital One Quicksilver out of a $300 CL.

Is 653 really bad?

Next question, I plan to pay off the $1164 in full this week. My total credit lines from all my accounts is $2700. Once the updated balance on my credit reports shows $0 for my PP Credit, my credit utilization% will be 5%, not 49%. Will this significantly raise my FICO8 score to over 700? Does the FICO8 score update immediately once the util% drops on my  credit reports?

Any help would be appreciated thanks so much!

[JoeRockhead]

653 would be considered fair credit. Getting your UTI down to 5% will be great, financially, and for your scores... But, I don't see you gaining 47 points from it... It will update next time your statement closes and reports to each CRA. Your scores will be recalculated then.

Nice job so far.

[MikeyMagic]

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@JoeRockhead wrote:

653 would be considered fair credit. Getting your UTI down to 5% will be great, financially, and for your scores... But, I don't see you gaining 47 points from it... It will update next time your statement closes and reports to each CRA. Your scores will be recalculated then.

Nice job so far.

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Thx for your reply! I know what I am about to use as an example is Vantage 3.0 not FICO8 but my Vantage 3.0 score was 683 when I had a 5%  credit utiliization in mid February. Once the $1164 PP Credit balance appeared on my credit reports my Vantage 3.0 score went down to 619. So it was a huge drop from 5% util to 49% util.

So I'm hoping my FICO score would rise a lot when my cred util drops to 5%. Maybe it could get to 700?

[SouthJamaica]

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@MikeyMagic wrote:

So my first FICO Score just came out on Experian and it is 653.

But here's the thing, my credit utilization percentage is 49% mainly from my PayPal Credit where I owe $1164 out of $1200. It also shows my Chase Freedom Rise Card shows a $65 balance out of a $500 CL, and I allowed an $85 balance to show on my Capital One Quicksilver out of a $300 CL.

Is 653 really bad?

Next question, I plan to pay off the $1164 in full this week. My total credit lines from all my accounts is $2700. Once the updated balance on my credit reports shows $0 for my PP Credit, my credit utilization% will be 5%, not 49%. Will this significantly raise my FICO8 score to over 700? Does the FICO8 score update immediately once the util% drops on my  credit reports?

Any help would be appreciated thanks so much!

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1. I don't know what "PayPal Credit" means, or how it reports. If it reports like a revolving credit card, then it will probably report only the balance showing when the statement cuts, and will probably report within a few days after the statement cuts.

2. The Capital One card reports the statement balance. It will probably appear in your reports a few days after the statement cut. If you pay it down before the statement cuts, it will report whatever is left. If zero is left, it will report zero.

3. The Chase Freedom card reports the statement balance, and it will appear in your reports a few days after the statement cut. However, Chase does something else, which is unusual -- if you pay the balance down to zero in the middle of a cycle, they will again report to the bureaus that you have a zero balance. So it may report to the bureaus several times during the same cycle.

[MikeyMagic]

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@SouthJamaica wrote:

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@MikeyMagic wrote:

So my first FICO Score just came out on Experian and it is 653.

But here's the thing, my credit utilization percentage is 49% mainly from my PayPal Credit where I owe $1164 out of $1200. It also shows my Chase Freedom Rise Card shows a $65 balance out of a $500 CL, and I allowed an $85 balance to show on my Capital One Quicksilver out of a $300 CL.

Is 653 really bad?

Next question, I plan to pay off the $1164 in full this week. My total credit lines from all my accounts is $2700. Once the updated balance on my credit reports shows $0 for my PP Credit, my credit utilization% will be 5%, not 49%. Will this significantly raise my FICO8 score to over 700? Does the FICO8 score update immediately once the util% drops on my  credit reports?

Any help would be appreciated thanks so much!

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1. I don't know what "PayPal Credit" means, or how it reports.

2. The Capital One card reports the statement balance. It will probably appear in your reports a few days after the statement cut. If you pay it down before the statement cuts, it will report whatever is left. If zero is left, it will report zero.

3. The Chase Freedom card reports the statement balance, and it will appear in your reports a few days after the statement cut. However, Chase does something else, which is unusual -- if you pay the balance down to zero in the middle of a cycle, they will again report to the bureaus that you have a zero balance.

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PayPal Credit reports to the bureaus just like a credit card. It's a credit line that I can use on PayPal. I'm hoping when that shows a $0 balance when I pay the $1164 off my FICO8 score will go up a lot. At least to 700. Going from a 49% credit util to a 5% util should help my score greatly hopefully.

[SouthJamaica]

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@MikeyMagic wrote:

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@SouthJamaica wrote:

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@MikeyMagic wrote:

So my first FICO Score just came out on Experian and it is 653.

But here's the thing, my credit utilization percentage is 49% mainly from my PayPal Credit where I owe $1164 out of $1200. It also shows my Chase Freedom Rise Card shows a $65 balance out of a $500 CL, and I allowed an $85 balance to show on my Capital One Quicksilver out of a $300 CL.

Is 653 really bad?

Next question, I plan to pay off the $1164 in full this week. My total credit lines from all my accounts is $2700. Once the updated balance on my credit reports shows $0 for my PP Credit, my credit utilization% will be 5%, not 49%. Will this significantly raise my FICO8 score to over 700? Does the FICO8 score update immediately once the util% drops on my  credit reports?

Any help would be appreciated thanks so much!

---

1. I don't know what "PayPal Credit" means, or how it reports.

2. The Capital One card reports the statement balance. It will probably appear in your reports a few days after the statement cut. If you pay it down before the statement cuts, it will report whatever is left. If zero is left, it will report zero.

3. The Chase Freedom card reports the statement balance, and it will appear in your reports a few days after the statement cut. However, Chase does something else, which is unusual -- if you pay the balance down to zero in the middle of a cycle, they will again report to the bureaus that you have a zero balance.

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PayPal Credit reports to the bureaus just like a credit card. It's a credit line that I can use on PayPal. I'm hoping when that shows a $0 balance when I pay the $1164 off my FICO8 score will go up a lot. At least to 700. Going from a 49% credit util to a 5% util should help my score greatly hopefully.

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Yes, probably it will help your score significantly.

[Junejer]

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@MikeyMagic wrote:

So my first FICO Score just came out on Experian and it is 653.

But here's the thing, my credit utilization percentage is 49% mainly from my PayPal Credit where I owe $1164 out of $1200. It also shows my Chase Freedom Rise Card shows a $65 balance out of a $500 CL, and I allowed an $85 balance to show on my Capital One Quicksilver out of a $300 CL.

Is 653 really bad?

Next question, I plan to pay off the $1164 in full this week. My total credit lines from all my accounts is $2700. Once the updated balance on my credit reports shows $0 for my PP Credit, my credit utilization% will be 5%, not 49%. Will this significantly raise my FICO8 score to over 700? Does the FICO8 score update immediately once the util% drops on my  credit reports?

Any help would be appreciated thanks so much!

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Congrats on getting a FICO score @MikeyMagic. That PayPal card is effectively maxed at that util percentage. I don't have a crystal ball, but it wouldn't surprise me if you hit 700 when it reports a $0 balance, all other accounts remaining the same. You'll give yourself a better chance at 700 if that Chase card reports around 5% versus the current 13%. Good luck!

[Horseshoez]

And yet another congratulations @MikeyMagic for getting a FICO score, I agree with other posters, dropping your utilization will help your scores but not enough to get you anywhere near a 700 for FICO 8.  Regarding your Vantage scores, just consider them a mirage.

[CorpCrMgr1]

Like others have posted paying down your accounts should significantly raise your score. Other factors will also determine your future score. Good luck!

[Thomas_Thumb]

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@MikeyMagic wrote:

So my first FICO Score just came out on Experian and it is 653.

But here's the thing, my credit utilization percentage is 49% mainly from my PayPal Credit where I owe $1164 out of $1200. It also shows my Chase Freedom Rise Card shows a $65 balance out of a $500 CL, and I allowed an $85 balance to show on my Capital One Quicksilver out of a $300 CL.

Is 653 really bad?

Next question, I plan to pay off the $1164 in full this week. My total credit lines from all my accounts is $2700. Once the updated balance on my credit reports shows $0 for my PP Credit, my credit utilization% will be 5%, not 49%. Will this significantly raise my FICO8 score to over 700? Does the FICO8 score update immediately once the util% drops on my  credit reports?

Any help would be appreciated thanks so much!

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A Fico score of 653 is not good. As a minimum you need to get above 660. More preferrably get score above 720 for better interest rates on loans. 

You are losing 50 to 65 points due to the PayPal revolving account at 97% utilization (20- 30 point impact), overall utilization at 49% (25-30 point loss) and 5 point loss for too many revolving accounts reporting balances.

I think you could get to a 700 score by optimizing revolving utilization and reporting a balance on only 1 revolving account. You will also get a significant score boost when your youngest account reaches 12 months age.