Higher Score with longer repayment

[CluelessJohn]

You're talking about a 15 point difference from a "black box estimator".  Does that point difference really matter?  Think about the money you're throwing away in interest cost.  That's what matters. 

[bdhu2001]

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@core wrote:

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@Thexy1 wrote:
I guess I'm confused because I think that payment history+age+/-whatever other factors=points. Am example would be that I would get more points for making payments for 5 months than paying a lum sum payment.

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No, it makes no difference.  You can pay your balances over 12 months (and pay interest), or pay them all off tomorrow and just let your accounts age for 12 months and your score will be exactly the same in either case.  FICO has no memory of past balances; all that matters is what balances are shown at any given moment.

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Now that you know it's based on time and timely payments (i.e. no late payments during that time), did you enter various months between 12 & 24? I ask, because when I used the simulator, it showed that I would reach the 24 month score in 18 months. Actually, it showed that my score would increase at 3 mos, 6 mos, 12 mos and 18 mos.

I'm too frugal to pay every month, so I used the simulator and noted the months that it would change. Month 3 will be on 4/28/15, but I think I'll pull my score again at 6 months which will be 7/28/15.

[NRB525]

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@core wrote:

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@Thexy1 wrote:
I guess I'm confused because I think that payment history+age+/-whatever other factors=points. Am example would be that I would get more points for making payments for 5 months than paying a lum sum payment.

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No, it makes no difference.  You can pay your balances over 12 months (and pay interest), or pay them all off tomorrow and just let your accounts age for 12 months and your score will be exactly the same in either case.  FICO has no memory of past balances; all that matters is what balances are shown at any given moment.

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+1

OP, you are confusing the score simulator. Pay your interest bearing balances off as fast as you can. Your revolving accounts will be there, and you can use them for PIF purchases after they are zeroed. After the 24 months, you likely will be at the same place as the 24 month simulator says, and even better, you will not have paid more interest than you have to.

Your score does not care if you are paying on a balance, it cares that you have another good month with no lates.

[Thexy1]

@NRB525 Thanks .. so no lates is the increasing factor not monthly payments. Thanks all for your help.

[Thexy1]

@bdhu2001 I just did 12 and 24 to note the difference but I will definitely go back and run the numbers for the different number of months. 

I forgot about total interest over time and I would rather save on interest. 

[Thexy1]

@cluessJohn My original question/statement was does 15points even really matter which is why I wanted feedback.