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Help with understanding the MyFico score simulator and planning to improve score

thundr101
Valued Member

Help with understanding the MyFico score simulator and planning to improve score

Hi!

 

First, sorry for the ramble.

 

I have been a long time MyFico reader and was hoping to get some help with a credit scenario.. also to better understand how to work with my CLs and Reporting Schedules to get the most out of my credit score. Specifically, I have 4-5 months before I need to get my score above a 720/740 (would like to see higher..) and I want to know how I can do that. Current scores across my files are TU 698, EX 729, EQ 721.

 

The majority of my adult life I have never really paid attention to UTIL % and other specifics on my file, I usually just worried about paying on time and not getting collections or anything bad reporting to my file. I am on the path to building a house, and the lender has already preapproved me based on my mid-score of 674 back in May.

 

One recommendation the lender had was to pay all my revolving account balances to zero. I only had ~$15k owed across all revolving lines, so I promptly paid them all off and now carry a zero balance across all (as reported to the CRAs). I have a very old TL with FNBO that has a fantastic $300 CL... and I used it last month just to keep it active. I missed the cycle date and it was reported over limit.. not my best move, but it's paid and will report $0 next month. That's the only 'bad' currently reporting.

 

Now to understanding the Fico Simulations. Most of the Simulators see the small revolving balance I owe and the show that the *best* score improvement occurs if I pay the $300 balance down over 5 months. It suggests a 40pt increase, for that action alone.

 

Since I won't have any revolving balances due when the next cycle reports, should I use one of my cards (say charge $1,500), let it report and pay that over 5 months? Maybe I am not understanding the Simulator feedback, or it may not really apply since I don't have other balances currently reporting? I do understand the scores aren't true FICO scores and that the outcomes aren't guaranteed.

 

I have been a historically apply-happy person.. which doesn't bode well with aging my credit file. I haven't applied for or opened anything in the past 6 months... and am hoping to understand the best ways to build or boost my score quickly, considering my file is otherwise clean and has low/no revolving TL balances reporting.

 

If it helps....

Avg Age of Accounts: 4y 2m

Oldest Account: 16y 5m

My highest TL (non-AU): $12,000

Auto Loan: Highest Orig Balance $63,000 in 10/2018 - now $42,000

 

Can you provide any suggestions to help boost (or get my score moving upwards)? Or is patience and keeping all balances at $0 the best way to achieve that?

 

Thank you for your help!!

Starting Fico Scores:
Current Fico Scores:

My Fico Goal Score: 800++


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3 REPLIES 3
FireMedic1
Community Leader
Super Contributor

Re: Help with understanding the MyFico score simulator and planning to improve score

Best to not pay all balances to $0. FICO doesnt like that. Have 1 report a balance of <8.99% each month and then PIF. Pick a card to do so. Rinse and repeat. No simulator is accurate. Even here. The fine folks here can do a better job than any simulator. Dont carry large balances either. Why pay interest? Loss of money also. Follow AZEO for a while and you'll see the difference. (All Zero Except One).



Homeowner Sept 2020. 2021 Explorer ST Chase 3.1%. Sharing my rebuild after BK from learning here. Started 540's. FICO 9 801 as of 05/03/2023. I stayed around to pay it forward for those who helped me back then.

Message 2 of 4
SouthJamaica
Mega Contributor

Re: Help with understanding the MyFico score simulator and planning to improve score


@thundr101 wrote:

Hi!

 

First, sorry for the ramble.

 

I have been a long time MyFico reader and was hoping to get some help with a credit scenario.. also to better understand how to work with my CLs and Reporting Schedules to get the most out of my credit score. Specifically, I have 4-5 months before I need to get my score above a 720/740 (would like to see higher..) and I want to know how I can do that. Current scores across my files are TU 698, EX 729, EQ 721.

 

The majority of my adult life I have never really paid attention to UTIL % and other specifics on my file, I usually just worried about paying on time and not getting collections or anything bad reporting to my file. I am on the path to building a house, and the lender has already preapproved me based on my mid-score of 674 back in May.

 

One recommendation the lender had was to pay all my revolving account balances to zero. I only had ~$15k owed across all revolving lines, so I promptly paid them all off and now carry a zero balance across all (as reported to the CRAs). I have a very old TL with FNBO that has a fantastic $300 CL... and I used it last month just to keep it active. I missed the cycle date and it was reported over limit.. not my best move, but it's paid and will report $0 next month. That's the only 'bad' currently reporting.

 

Now to understanding the Fico Simulations. Most of the Simulators see the small revolving balance I owe and the show that the *best* score improvement occurs if I pay the $300 balance down over 5 months. It suggests a 40pt increase, for that action alone.

 

Since I won't have any revolving balances due when the next cycle reports, should I use one of my cards (say charge $1,500), let it report and pay that over 5 months? Maybe I am not understanding the Simulator feedback, or it may not really apply since I don't have other balances currently reporting? I do understand the scores aren't true FICO scores and that the outcomes aren't guaranteed.

 

I have been a historically apply-happy person.. which doesn't bode well with aging my credit file. I haven't applied for or opened anything in the past 6 months... and am hoping to understand the best ways to build or boost my score quickly, considering my file is otherwise clean and has low/no revolving TL balances reporting.

 

If it helps....

Avg Age of Accounts: 4y 2m

Oldest Account: 16y 5m

My highest TL (non-AU): $12,000

Auto Loan: Highest Orig Balance $63,000 in 10/2018 - now $42,000

 

Can you provide any suggestions to help boost (or get my score moving upwards)? Or is patience and keeping all balances at $0 the best way to achieve that?

 

Thank you for your help!!


1. Which score(s) are  you looking to improve?  Since you're talking about a mortgage, I assume you're talking about the mortgage scores EQ FICO 5, TU FICO 4, and EX FICO 2.

 

2. The simulators are not meaningful.

 

3. I am aware of no simulator for the FICO mortgage scores, which are the only scores that count for your situation.

 

4. If you're talking about non-FICO simulators those are even more meaningless, so forget them.

 

5. It's not rocket science. Here's what you should be doing to maximize your mortgage scores:

 

(a) pull a MyFICO 3 bureau report, and see what your actual mortgage scores are today, so you'll know where you're starting out

 

(b) make no applications for credit of any kind, or any kind of application that could result in a hard pull

 

(c) let all but one of your revolving accounts report a zero balance, and let one bank card report a small balance before you pay it off

 

Do the above until after you've closed on  your mortgage.


Total revolving limits 748700 (630200 reporting) FICO 8: EQ 705 TU 717 EX 687

Message 3 of 4
thundr101
Valued Member

Re: Help with understanding the MyFico score simulator and planning to improve score

I apprecate you taking the time to provide a reply and this feedback!

 

If I had more time before closing, alot of this would probably not be as rushed or stressed as it is now. Your replies are helpful and I will def follow this advice.

 

Thank you again!

Starting Fico Scores:
Current Fico Scores:

My Fico Goal Score: 800++


Take the myFICO Fitness Challenge
Message 4 of 4
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